Answer:
the freedom for individuals to choose businesses, the right to private property, profits as an incentive, competition, and consumer sovereignty.
Explanation:
Answer:
-0.4242
Explanation:
Ra = 0.21 or 21%
Rf = 0.045 or 4.5%
Rp = 0.28 or 28%
Expected return on a portfolio is weighted average return of its assets
:
Rp = Rf*(1-w) + Ra*w
28 = 4.5*(1-w) + 21*w
28 = 4.5 - 4.5w + 21w
28 - 4.5 = 21w - 4.5w
21w - 4.5w = 28 - 4.5
16.5w = 23.5
w = 23.5/16.5
w = 1.4242
Hence, weight of risky asset = 1.4242
So, Weight of risk free asset = 1 - 1.4242
Weight of risk free asset = -0.4242
Hello, The first step of financial planning process is to define specific goals. Since this is the first step I figured it is the most important.
Hope this helps..
It is possible but there should be some type of criteria that needs to be met. For example, the market should have room for both products and the other important thing to have in mind is that the company must have sufficient resources in order to produce both products simultaneously.
