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faust18 [17]
3 years ago
8

There are 300 purely competitive farms in the local dairy market. of the 300 dairy farms, 298 have a cost structure that generat

es profits of $18 for every $300 invested. instructions: enter your answers as whole numbers.
a. what is the percentage rate of return for these 298 dairies?
Business
1 answer:
Stells [14]3 years ago
4 0

Answer:

The percentage rate of return for these 298 dairies is 6%

Explanation:

The percentage rate of return is calculated by dividing the profits by total investment, so the given information in the question is,

profits = $18

investment = $300

percentage rate of return = 18/300 = 0.06 = 6%

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describe the principle of supply and demand including how it affects the prices of the goods and services
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3 years ago
Under Armour developed dynamic advertising, sponsorships of sports leagues, a creative Web site and celebrity spokespeople to pr
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Answer:

Integrated marketing communications.

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3 years ago
You have been managing a $3 million portfolio. The portfolio has a beta of 1.10 and a required rate of return of 10%. The curren
riadik2000 [5.3K]

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.

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Required Rate of Return of Portfolio = 9.67%

8 0
4 years ago
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