Answer:
The Required rate of return on Portfolio is 9.67%
Explanation:
In order to get the answer first we need to calculate the new beta of portfolio. The weight of portfolio and new stock is calculated using total value of investment in portfolio and multiplying by the total investment we get new beta.
(3M / 3.6M) x 1.10 + (0.6M / 3.6M) x 0.60 = 1.01667
Through using the CAPM Model we get risk premium of Existing Portfolio:
Required rate of return of portfolio = RF + ( Rm - RF ) x beta
10% = 5.6% + (Rm -RF) x 1.10
10% - 5.6% = (Rm - RF) x 1.10
4.4% / 1.10 = (Rm - RF)
(Rm - RF) = 4%
After getting the Risk Premium we can CAPM model equation to get New Required rate of return.
Required rate of return of portfolio = RF + ( Rm - RF ) x beta
Required rate of return of portfolio = 5.6% + 4% x 1.01667
Required Rate of Return of Portfolio = 9.67%
Answer:
Even when competitive firms are unable to calculate marginal revenue product directly, <u>competition in the labor market</u> will push wage rates toward the marginal revenue product of labor.
Explanation:
The labor market is made up of employers seeking for labor and employees offering their labor services. The law of supply and demand also applies to this market, when more employers are seeking employees, the price (= salary) will increase.
For example, if many companies are making a profit and they need more labor, the salaries will rise because the demand is rising.
Also the suppliers, the potential employees, compete against each other for the best possible jobs.
<span>How did trickle-down economics claim to increase government tax revenues? By lowering tax rates. Lower tax rates helps the people by giving them a tax break that the wouldn't otherwise get. Paying taxes becomes expensive and it helps those when taxes decrease because they are able to keep more of their income and afford more than they would be able to otherwise. </span>
It should be noted that best answer to both the flatness and horizon problems is inflationary epoch.
The inflationary epoch van be regarded as the period in the evolution of the early universe, at this period there was an expansion.
According to inflation theory, the earth were recorded to experience great horizon problems and exponential expansion.
Therefore, inflationary epoch brings about both flatness and horizon problems
Learn more about inflationary epoch at:
brainly.com/question/11356270
Answer:
Hundred Days
Explanation:
The period between March 9 and June 16, 1933, when Congress passed 15 major acts to meet the economic crisis of the Depression was called <u>the hundred Days</u>. As we know that the First New Deal began in a whirlwind of legislative action called “The First Hundred Days.” From March through June 1933, at Roosevelt’s behest, Congress passed legislation aimed at addressing the banking crisis, unemployment, and weak industrial performance, among other problems, through an “alphabet soup” of new laws and agencies.
