Answer:
c. neither Asset A nor Asset B is acceptable
Explanation:
The computation of the risk return basis is shown below:-
Optimal Return of Asset A is
= A × 0.5 × Standard Deviation^2 + Risk Free Rate
= 3 × 0.5 × 20%^2 + 5%
= 11%
As 10% is lesser than 11%
Now
Optimal Return of Asset B is
= A × 0.5 × Standard Deviation^2 + Risk Free Rate
= 3 × 0.5 × 27%^2 + 5%
= 15.94%
As 15% is lesser than 15.94%
Therefore neither Asset could be acceptable
Answer:
Marketing myopia
Explanation:
Marketing myopia is a term that describes a situation in which a business or company is more focused on the products it offers rather than the customers. This term was coined by Theodore Levitt. Cullen and MacNeil’s can be said to be suffering from marketing myopia as the company’s program doesn’t take account of the changing lifestyle of the customers which tends to align towards electronic media, and as such would only be assuming there are no competitive substitutes for whatever products they are offering. We can say the company does not have the interest of customers at heart.
Answer:
The mark up percentage on total cost is 13%.
Explanation:
Mark up percentage on total cost refers to the profit as a percentage of the total cost.
Therefore, the mark up percentage on total cost can be calculated using the following formula:
Mark up percentage on total cost = (Desired profit / Total cost) * 100 ......... (1)
Where;
Desired profit = $143
Total cost = $1,100
Substituting the values into equation (1), we have:
Mark up percentage on total cost = ($143 / $1,100) * 100 = 0.13 * 100 = 13%
Therefore, the mark up percentage on total cost is 13%.
Answer: $152,309.69
Explanation:
You are looking for the future value of this amount in 29 years assuming it will be compounded annually.
Future value = Amount * (1 + rate)^ number of years
= 4,400 * ( 1 + 13%)²⁹
= $152,309.69
Answer:
The most common reasons businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.