Answer:
d. An index fund with beta = 1.0 should have a required return of 11%.
Explanation:
required rate of return for a market indexed portfolio = 6% + (1 x 5%) = 11%
If the required rate of return is less than 11%, the beta is lower than 1.
If the required rate of return is more than 11%, the beta is larger than 1.
If beta doubles, then the required rate of return = 6% x (2 x 5%) = 16%
The ERISA act address "retirement and healthcare benefits for employees".
<u>Answer:</u> Option B
<u>Explanation:</u>
The 1974 Employee Retirement Income Security Act (ERISA) is a federal legislation that lifts basic standards for most voluntarily developed private-sector healthcare and retirement plans to supply security for people in those plans. ERISA involves:
- proposals to have plan documentation to members including valuable information on plan characteristics and financing;
- offers legal duties to those managing and controlling plan liabilities;
- involves grievance plans and appeals for individuals to benefit from their plans; and
- grants participants the right to sue for advantages and infringements of fiduciary duties.
Answer: Cash inflows include the transfer of funds to a company from another party as a result of core operations, investments or financing. Such cash inflows include payments to the company by customers and banks and the contribution of equity by investors who purchase the company’s stock or partial ownership in a company.
Cash outflows include the transfer of funds by a company to another party. Such cash outflows include payments to business partners including employees, suppliers or creditors. Cash outflows also occur when long-term assets are acquired, investments are purchased, or settlements and expenses are paid.
Answer:
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It is better to paint the garage this week as provide better relevant yield.
Explanation:
The 1,000 invested in the law mower ware sunk cost as it is already incurred. After this week we will be still be able to take jobs ralated to the lawn mower.
We must base our analysis in the future cost associate with each alternative.
These are the revenue of each job and the additional cost.
The transportation as they are equal to both alternative are disregarded.
<span>Money provides four key functions for an economy,
1. medium of exchange
2. unit of account
3. store of value
4. standard of deferred payment
"when money specifies the value of something", it is performing a function as a medium of exchange, which is the primary function of money. Medium of exchange means the money is used to conduct transactions.
people use money to buy and sell goods.</span>
