Answer:
β of the stock = 1
Explanation:
Given:
α of a stock = 0%
Return on the market index = 16%
Risk-free rate of return = 5%
Required rate = 11% + 5% = 16%
β of the stock = ?
Computation of β of the stock:
Required rate = Risk-free rate of return + [β (Return on the market index - Risk-free rate of return)]
16% = 5% + [β (16% - 5%)]
16% - 5% = β (16% - 5%)
11% = [β (16% - 5%)
11% = [β (11%)
β of the stock = 1
Answer:
The right answer is option (D).
Explanation:
According to the scenario, the most appropriate answer is option (D) because systematic study can be defined as the study of social relationships and behavior and making a decision on the basis of data collected.
While the other options are not that appropriate because of the following reasons:
- The organizational study can be defined as the study when a person organizes a process which results in boosting the social relation.
- Intuitive study shows the concept of making decision immediately without going deep on data collected.
- Theoretical study shows the concept of study anything very theoretic and than makes the decision.
- Case-based study shows the concept of study which checks though the results of similar cases to make any decision.
Answer:
The answer is: This tax follows: "The benefits-received principle"
Explanation:
There are two principles of tax fairness raised in the question:
+ The ability to pay principles: stating that people should pay amount of tax in accordance with the level of wealth and income they possess.
+ The benefits-received principles: stating that the amount of tax a taxpayer has to pay should be in accordance with the level of consumption of government's goods and services.
By re-visiting two concepts above, we come up with "The benefits-received principle" as the answer.
It is because the resources dedicated to building public clinics specializing in helping alcoholics reduce their alcohol consumption is funded from liquor consumers which is the majority group of people which will consume the services of these clinics.
Answer: Option (d) is correct.
Explanation:
The predetermined overhead is largely based on the estimations rather than actual costs. It is determined by dividing the total estimated factory overhead cost by the total number of estimated machine hours. It gives a way to the firms for measuring their factory overhead costs that are going high or low for a specific production run.
