Answer:
Tesla Motors breached the contract they had with Sarah and they are liable under the firm offer rule.
Explanation:
The firm offer rule states that an offer shall remain open and firm until its expiration date (in this case September 15). Tesla Motors can revoke an offer (anyone can) but in order to do so, it must notify the other party about the revocation. If Tesla didn't properly revoke the offer before Sarah accepted it, then they are liable for it.
Question Completion with Options:
a. A lack of diversification in fund A as compared to fund D.
b. Different benchmarks used to evaluate each fund’s performance.
c. A difference in risk premiums.
Answer:
The difference in rankings for Funds A and D is most likely due to:
a. A lack of diversification in fund A as compared to fund D.
Explanation:
a) Data and Calculations:
Fund Treynor Measure Rank Sharpe Ratio Rank
A 1 4
B 2 3
C 3 2
D 4 1
b) The Sharpe ratio and the Treynor measure are two financial performance ratios that measure the risk-adjusted rate of return of an investment. Specifically, the Sharpe ratio helps investors to understand an investment's return profile when compared to its risk profile. On the other hand, the Treynor ratio measures the excess return generated for portfolio risk per unit.
In conclusion, the Sharpe ratio appears to be a better measure with a portfolio that is not properly diversified, while the Treynor ratio works better with a well-diversified portfolio.
Answer:
Maturity Stage
Explanation:
At the maturity stage the company is running at full capacity and is charging lower prices because the competitors has entered the market and it is more likely that the they affect the customer's choices. To retain this customer the company will have to offer the product at a lower price and increase the promotion cost to retain the share of the market share which means the profit per unit will decrease.
Its b
Explain:
The reason it’s because the government collects taxes which are considered leakages