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Bond [772]
3 years ago
8

Select the first and last steps in the decision-making process. Identify the decision to be made. Gather information and data. S

elect the best option. Develop a plan of action.
Business
2 answers:
zhenek [66]3 years ago
5 0

Decision making is a process that uses a step by step approach to reach at a decision.

There are several steps involved in the decision making process. These are

1) Identify the decision

2) Gather information

3) Identify Alternatives

4) Choose among the Alternatives

5) Take the Decision

6) Review the Decision

So in this question, the Identification of decision and the Review of Decision are the first and last steps respectively in the decision making process.

Anvisha [2.4K]3 years ago
3 0

The first step is:

Identify the decision to be made

The last step is:

Develop a plan of action.

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Assume that the CAPM holds. One stock has an expected return of 8% and a beta of 0.5. Another stock has an expected return of 13
Zolol [24]

Answer:

10.5%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

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

For one stock

8% = Risk-free rate of return + 0.5 × (Market rate of return - Risk-free rate of return)

8% = Risk-free rate of return + 0.5 × Market rate of return - 0.5 × Risk-free rate of return

8% =  0.5 × Risk-free rate of return + 0.5 × Market rate of return

8% ÷ 0.5 = Risk-free rate of return + Market rate of return

So, Risk-free rate of return + Market rate of return = 16

Risk-free rate of return = 16 - Market rate of return             - 1

For another stock

13% = Risk-free rate of return + 1.5 × (Market rate of return - Risk-free rate of return)

13% = Risk-free rate of return + 1.5 × Market rate of return - 1.5 × Risk-free rate of return

13% =  - 0.5 × Risk-free rate of return + 1.5 × Market rate of return        - 2

Now put these equations together

13% =  - 0.5 × (16 - Market rate of return)  + 1.5 × Market rate of return

13% = - 8 + 0.5 × Market rate of return + 1.5 × Market rate of return

So, Market rate of return would be

= 21 ÷ 2

= 10.5%

4 0
3 years ago
5. Use the information below to answer question 5:
NemiM [27]

Answer:

(a) Excess reserves = 200

(b) Monetary base (B) = 900

(c) Money multiplier = 10

Explanation:

Assuming that the required reserve ratio (missing in the question) is 0.1:

(a) Excess reserves = Reserves - Required reserves

Reserves = 400

Required reserves = Deposits x Required reserve ratio

                               = 2000 x 0.1

                               = 200

Hence, Excess reserves = 400 - 200

                                        = 200

(b) Monetary base (B) = Reserves + Currency

                                    = 400 + 500

                                    = 900

(c) Money multiplier = 1 / Required reserve ratio

                                 = 1 / 0.1

                                 = 10

5 0
4 years ago
Read 2 more answers
(1 point)
Elan Coil [88]

Answer:

Explanation: do you have the answer now?

6 0
3 years ago
"To some people, the definition of familyis limited to legal and biological relationships, whereas toothers, it includes anyone
AleksandrR [38]

Answer: C. Compare-and-contrast

Explanation: Comparison and contrasting is a technique employed in essays, writing or teaching which examines the similarities between two or more objects while also examining the differences between the same objects.

The scenario above is aimed at establishing the different definitions or understanding of the word 'family' as explained by two different groups by stating the different definitions offered by each group.

3 0
3 years ago
The annual report for Malibu Beachwear reported the following transactions affecting stockholders’ equity:_______
dedylja [7]

Answer:

                       Common  Additional Paid  Retained  Treasury  

                       Stock               in Capital               Earnings          Stock

Beginning $12,500         $190,000        $150,000         $0

Stock Issuances    

Net Income                                          $270,000  

Dividends: Common    

Ending

I prepared an excel spreadsheet because there is not enough room here.

Download pdf
3 0
4 years ago
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