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asambeis [7]
3 years ago
15

Foreign direct investment (FDI) in several sectors in India is still heavily regulated. After much debate, the govemment of Indi

a recently relaxed restrictions on FDI in the retail sector. For purported reasons like national security and possible job losses, many sectors of the economy such as defense, nuclear power, and oil refining are not fully open to foreign direct investment. Suppose you are hired to serve on the govenment's Working Group on Foreign Direct Investment. 20. What would you suggest o the govenment based on the discusions in this chapter? O A. Less FDI should be allowed, even in retail, because the resulting technology transfer would give India's competitors a competitive advantage over India's businesses. B. Continue to restrict FDI in the areas noted, because the strategic value of these industries O C. Allow more FDI, because the resulting technology transfer would bring increased efficiency and D. More FDI should be allowed, because the increased capital nows would allow businesses to outweighs any benefits that might come from increased FDI benefit India. borrow more to expand.

Business
1 answer:
navik [9.2K]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

C. Allow more FDI, because the resulting technology transfer would bring increased efficiency and  

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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On December 31, 2016 before adjusting entries, Accounts Receivable for Nickolas Company had a debit balance of $200,000, and the
Karo-lina-s [1.5K]

Answer:

b. The balance of the Allowance for Doubtful Accounts will be $22,000 after adjustment.

Explanation:

If credit losses are estimated at 1% of credit sales than balance of allowance for doubtful account after adjustment will be = $6,000 + $1,600,000 * 1%

= $6,000 + $16,000

= $22,000

4 0
3 years ago
Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at t
Oxana [17]

Answer:

A) $50

Explanation:

The computation of the intrinsic value of the stock is shown below:

But before that the required rate of return is computed by using CAPM

Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)

= 5% + 0.5 × (13% - 5%)

= 5% + 0.5 × 8%

= 5% + 4%

= 9%

Now the intrisinc value is

= Dividend ÷ (required rate of return - growth rate)

= $6 ÷ (9% - (-3%)

= $6 ÷ 12%

= $50

Hence, the intrinsic value of the stock is $50

Therefore the correct option is A.

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3 years ago
One role of environmental science in the society
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To study and better the enviorment
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You are part of an Information Systems project team. Your job is to ensure that the technology and vendor suggested for use in t
LenaWriter [7]

.answer:

the correct answer is (c)

explanation:

information systems manager (IS Manager) represent data innovation in an association, regulating a group of IT experts. The job incorporates data frameworks arranging, establishment, and support, including equipment and programming overhauls. IS directors may concentrate on a particular issue, for example, arrange security or Internet administrations, or they may organise all innovation tasks

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3 years ago
Here are returns and standard deviations for four investments. Return (%) Standard Deviation (%) Treasury bills 4.5 0 Stock P 8.
Jlenok [28]

Answer:

a. Standard deviation of the portfolio = 7.00%

b(i) Standard deviation of the portfolio = 30.00%

b(ii) Standard deviation of the portfolio = 4.00%

b(iii) Standard deviation of the portfolio = 21.40%

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Here are returns and standard deviations for four investments.

                                  Return (%)           Standard Deviation (%)

Treasury bills                4.5                                    0

Stock P                          8.0                                   14

Stock Q                        17.0                                  34

Stock R                       21.5                                    26

Calculate the standard deviations of the following portfolios.

a. 50% in Treasury bills, 50% in stock P. (Enter your answer as a percent rounded to 2 decimal places.)

b. 50% each in Q and R, assuming the shares have:

i. perfect positive correlation

ii. perfect negative correlation

iii. no correlation

(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

The explanation to the answer is now provided as follows:

a. Calculate the standard deviations of 50% in Treasury bills, 50% in stock P. (Enter your answer as a percent rounded to 2 decimal places.)

Since there is no correlation between Treasury bills and stocks, it therefore implies that the correlation coefficient between the Treasury bills and stock P is zero.

The standard deviation between the Treasury bills and stock P can be calculated by first estimating the variance of their returns using the following formula:

Portfolio return variance = (WT^2 * SDT^2) + (WP^2 * SDP^2) + (2 * WT * SDT * WP * SDP * CFtp) ......................... (1)

Where;

WT = Weight of Stock Treasury bills = 50%

WP = Weight of Stock P = 50%

SDT = Standard deviation of Treasury bills = 0

SDP = Standard deviation of stock P = 14%

CFtp = The correlation coefficient between Treasury bills and stock P = 0.45

Substituting all the values into equation (1), we have:

Portfolio return variance = (50%^2 * 0^2) + (50%^2 * 14%^2) + (2 * 50% * 0 * 50% * 14% * 0) = 0.49%

Standard deviation of the portfolio = (Portfolio return variance)^(1/2) = (0.49%)^(1/2) = (0.49)^0.5 = 7.00%

b. 50% each in Q and R

To calculated the standard deviation 50% each in Q and R, we first estimate the variance using the following formula:

Portfolio return variance = (WQ^2 * SDQ^2) + (WR^2 * SDR^2) + (2 * WQ * SDQ * WR * SDR * CFqr) ......................... (2)

Where;

WQ = Weight of Stock Q = 50%

WR = Weight of Stock R = 50%

SDQ = Standard deviation of stock Q = 34%

SDR = Standard deviation of stock R = 26%

b(i). assuming the shares have perfect positive correlation

This implies that:

CFqr = The correlation coefficient between stocks Q and = 1

Substituting all the values into equation (2), we have:

Portfolio return variance = (50%^2 * 34%^2) + (50%^2 * 26%^2) + (2 * 50% * 34% * 50% * 26% * 1) = 9.00%

Standard deviation of the portfolio = (Portfolio return variance)^(1/2) = (9.00%)^(1/2) = (9.00%)^0.5 = 30.00%

b(ii). assuming the shares have perfect negative correlation

This implies that:

CFqr = The correlation coefficient between stocks Q and = -1

Substituting all the values into equation (2), we have:

Portfolio return variance = (50%^2 * 34%^2) + (50%^2 * 26%^2) + (2 * 50% * 34% * 50% * 26% * (-1)) = 0.16%

Standard deviation of the portfolio = (Portfolio return variance)^(1/2) = (0.16%)^(1/2) = (0.16%)^0.5 = 4.00%

b(iii). assuming the shares have no correlation

This implies that:

CFqr = The correlation coefficient between stocks Q and = 0

Substituting all the values into equation (2), we have:

Portfolio return variance = (50%^2 * 34%^2) + (50%^2 * 26%^2) + (2 * 50% * 34% * 50% * 26% * 0) = 4.58%

Standard deviation of the portfolio = (Portfolio return variance)^(1/2) = (4.58%)^(1/2) = (4.58%)^0.5 = 21.40%

8 0
3 years ago
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