Answer:
Security D
Explanation:
Fair rate of Return =
where B = Beta, which is the degree of responsiveness of security return to market return
= Risk Free Rate of return
= Return on market portfolio
Risk premium which is, 10 - 4 = 6 %
Thus, for security A = 4 + 0.85 × 6 = 9.1%
for security B = 4 + 0.75 × 6= 8.5%
for security C = 4 + 1.2 × 6 = 11.2%
for security D = 4 + 1.35 × 6 = 12.1%
for security E = 4 + 0.5 × 6 = 7%
Expected returns as given
for A = 7%
for B = 9%
for C = 9.5%
for D = 12.1%
for E = 14%
As is evident, the fair and expected return for stock D is the same i.e 12.1%. Hence, the investor would be indifferent in that case whether to buy, sell or hold such a stock.
Answer:
The Core Capabillities of Harley davison are their devotion to the moter cycle industry and that they are more of an american platforme. When most americans buy something they would perfer is be made right here in the U.S.
Explanation:
<u>Answer:</u>
(1) In a closed economy, assuming investment demand is zero,
Y = C + G
Y - C = G
S = G, where
Y: Income, C: Consumption, S: Savings and G: Government spending
So,
S / Y = G / Y [dividing each side by Y]
MPS = $100 billion / $1000 billion = 0.10
(2) MPC = 1 - MPS = 1 - 0.10 = 0.90
Answer: Individual account in the name of Person A with a Third Party Trading Authorization granted to Person B
Explanation:
An account that has two or more signatory is known as a joint account. When this account is opened, both parties or all signatory to the account will have to either be physically present or would provide details about about themselves to be used for opening of the account. The account is then opened and all signatory to the account can access and be informed about every detail about the account as there is no preference of one person over the other.
Answer:
B) Product departmentalization
Explanation:
Ballooshu is using product departmentalization because it is dividing the company according to product lines.
As a diarly cooperative, management probably believes that the most efficient form of organization is according to the products that it makes.
The cheese department will focus on producing cheese, the ice cream department will focus on making ice cream, the milk department will focus on the production of milk, and so on.