Answer:
D. The outlet substitution bias injects an upward bias into the CPI
Explanation:
Answer:
C. Spreading risk by investing your money in a variety of funds and investment options.
Explanation:
To “diversify” a portfolio is to invest in a variety of assets as opposed to focusing on one type of asset. To diversify is to invest in different classes of assets to minimize the risks associated with investing.
Diversification minimizes risk by spreading it in the different classes of assets. Should returns from one class of assets be unfavorable, the losses incurred will be neutralized by positive returns from the other assets.
Answer:
0.22
Explanation:
Calculation for the weight on common equity
Using this formula
Weight of Common equity = Common Equity/(Debt + Preferred Equity+Common Equity)
Where,
Common Equity=1.2
Debt =1.1
Preferred Equity=3
Let plug in the formula
Weight of common equity = 1.2/(1.1+ 3+ 1.2)
Weight of common equity=1.2/5.3
Weight of Common Equity=0.22
Therefore the weight on common equity will be 0.22
<span>Answer:
The beta of MSFT is 1.05. The security market line of the CAPM tells us that the required rate of return is given by: E [ R MSFT ] = R f + β MSFT ( E [ R M - R f ]) = . 04 + 1 . 05 × . 06 = 10 . 3%</span>
The innermost bay of the Yellow Sea is called the Bohai Sea (previously Pechihli Bay or Chihli Bay). Into it flow both the Yellow River (through Shandong province and its capital Jinan) and Hai He (through Beijing and Tianjin). Deposits of sand and silt from those rivers contribute to the sea colour.
The northern extension of the Yellow Sea is called the Korea Bay.
The Yellow Sea is one of four seas named after common colour terms — the others being the Black Sea, the Red Sea and the White Sea.
