Answer:
<u>Risk premiums </u>= Alpha A x Risk Premium
S&P Portfolio Risk premiums = 3 x 5% = 15%
Hedge Fund Portfolio Risk premiums = 3 x 10% = 30%
<u>SDs</u> = Sd x √(A)
S&P Portfolio = 20% x √(3) = 34.64%
Hedge Fund Portfolio = 35% x √(3) = 60.62%
<u>Sharpe ratios </u>= Risk premium / SDs
S&P Portfolio = 15% / 34.64% = 0.43
Hedge Fund = 30% / 60.62% = 0.49
<span>When increased raw material costs increase prices for consumers, the situation is known as cost-push inflation.
Reason:
Cost-Push is defined as: </span><span>an increase in </span>prices<span> of inputs like labor, raw material, etc. The increased price of the factors of production leads to a decreased supply of these goods.</span>
Answer:
This indicates that the manager perceives demand to be:_______.
c. unit elastic.
Explanation:
Unit elastic demand describes a demand curve which is perfectly responsive to changes in price. This implies that the quantity supplied or demanded changes according to the same percentage as the change in price. For example, if the manager raises the price of her famous goods by $2.00, the unit elastic demand for that $2.00 increase would result in a decrease in the quantity demanded by one unit.
Answer:
Value
Explanation:
Cassandra has determined that by satisfying customers they can increase their sales which is also witnessed from The VRIO analysis. This analysis shows that the product uniqueness, resources availability, internal and external analyses, etc are of the opinion that this service will bring value to the company.
