Answer:
45.58%
Explanation:
Rate of return is the expected gain or loss on an investment, over a specific time period. It is derived as a percentage of the investment's original value or cost.
ROR = [CV - IV]/ IV × 100
CV is the current value of the investment (value at the end of the investment period)
IV is the initial value of the investment.
Note also, the assumption that interest payments are reinvested.
At the end of year 1, interest payment is $1,164.24
End of year 2 - $1,255.05
End of year 3 - $1,352.95
End of year 4 - $1,458.48
End of year 5 - $1,572.24
[Interest rate - 7.8%]
ROR = (1572.24 - 1080)/1080 × 100
ROR = 45.58%
Formula: Finished Goods Inventory Beginning - Sales in units + Produced units= Ending Inventory
3000-12000+14000= 5000 Ending finished goods inventory in units
-ahnnahly
Answer (A):
Need more data to select the better adviser
<u>Explanation: </u>
Adviser A averaged 19% return on the investment which is more than that of Adviser B who averaged 16% return on investment. However, adviser A has a beta of 1.5 which is also greater than that of Adviser B who has a beta of 1. This means that adviser A made a more riskier investment and hence a higher average return on investment. We need more data to tell which adviser performed better in relation to each other.
Answer (B):
Investment Adviser B
<u>Explanation:</u>
= T-bill rate = 6%
= Market return = 14%
= Market risk premium = 14% - 6% = 8%
= Average Return by Adviser A =19%
= Beta of Adviser A = 1.5
= Average Return by Adviser B =16%
= Beta of Adviser B = 1
CAPM Equation is 
<u>For Adviser A</u>
= 6 + 1.5 (14 - 6) = 18%
The expected average return for the investment is 18% which means that Adviser A over performed the market by 1 %
<u>For Adviser B</u>
= 6 + 1 (14 - 6) = 14%
The expected average return for the investment is 14% which means that the Adviser B over performed the market by 2 %
Clearly, Adviser B performed better than Adviser A.
Answer (C):
Adviser B
<u>Explanation:</u>
<u />
In this part, the
and 
All else remains the same
We make similar calculation as in part B
Answer:
The correct answer is (e)
Explanation:
Strategy implementation is an integral part of business activities. It is the responsibility of managers to keep an eye on all the process and make sure that all strategies are properly implemented. So, selling middle and supervisory manager on changes to overcome their resistance is often a necessary part of strategy implementation. It’s their duty to handle the resistance from employees and other staff members.
Answer:
left by 30 billons
then right by 40 billons
Explanation:
the aggregate demand curve will move to the left as the consumption of the economy will fall as the household are less wealthy than before.
Then, as the interest rate fall the aggregate demand curve will move to the right as the investing increase as now more projects are profitable.
<em>Calculations:</em>
<em />
5 billon for every point of wealth:
6 points x 5 billon = 30 billons
20 billion of inventing per 1% of interest rate decrease
2 points x 20 billions = 40 billons