<span>The Department of State is primarily responsible for U.S foreign policy. The State Department is responsible for the international relations of the United States, negotiates treaties and agreements with foreign entities, and represents the United States at the United Nations.</span>
<span>This poll talks about the economic progress of the United States where during those times in year 2010 Barack Obama is the president of the country. The poll have given a big difference towards the evaluation on how the economy have a lot of negative effects to citizen of the country that it was before. First is the issue about unemployment many Americans have no jobs, remember that this issue really gives a fall towards economic progress development for it can help generate more potential opportunities specially when it comes to factors that are all in the benefit of people getting employed where the business can gain more with the workforce, second is the health care issues are also one of the factors considered why they are unsatisfied with the economy, the platform and campaigns relating to health issues were not that fully effective, lastly the federal budget deficit in which really imparts a major negative effect on the economy for this is used for many developmental projects for the government's economic stability.</span>
Answer:
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Explanation:
From the question,
It is given:
FOR STOCK Y
Stock expected return = 14.7%
Stock beta = 1.4
risk-free rate is 5.2%
The Reward-to-risk ratio is given by the difference between the stock expected return and risk free rate divided by the stock beta.
Therefore
Reward-to-risk ratio for stock Y = (14.7% - 5.2%)/1.4
= 6.79%
FOR STOCK Z
Stock expected return = 8.7%
Stock beta = 0.7
risk-free rate is 5.2%
Therefore
Reward-to-risk ratio for stock Z = (8.7% - 5.2%)/0.7
= 5%
FOR SML
market risk premium = 6.2%
Risk rate = 5.2
Therefore
Reward-to-risk ratio for SML = (6.2%)/6.2 - 5.2
= 6.20%
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Answer:
Simple rate of return = 17.7%
Explanation:
Simple rate of return = incremental operating income ÷ initial investment
Depreciation = $468,000 ÷ 6years = $78,000
incremental operating income = $161,000-$78,000 =$83,000
Simple rate of return = $83,000÷$468,000=17.7%
