Answer:
Expected return is 12.6%
Explanation:
Zero beta portfolio has no systematic risk. A zero beta portfolio has same expected rate of return as risk free rate. It does not effects with market change.
Using CAPM formula to calculate the expected return
Expected return = Risk free rate + Beta ( Market rate - risk free rate )
As we know
Expected return on zero beta portfolio = risk free rate
Expected return = 7% + 0.7 ( 15% - 7% )
Expected return = 7% + 0.7 ( 8% )
Expected return = 7% + 5.6%
Expected return = 12.6%
Answer:
is this a essay question beacuse dont do those
Explanation:
Answer:
C
Explanation:
The correct option is C :price to increase and the profits of firms in the market to decrease
This can be explained by the fact that, since it always been mandatory to possess a license in order to work in a particular market. This certainly reduces the competition in the market and thus, the prices would increase; therefore, as the firms have to pay for licence thus would reduce the profits of firm.
Answer:
Total product costs= $131,000
Explanation:
<u>The absorption costing method includes all costs related to production, both fixed and variable.</u> The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
<u>In this case, the total product cost:</u>
Total product costs= 40,000 + 31,000 + 22,000 + 38,000
Total product costs= $131,000