Answer:
Explanation:
Synergy's Decision Large Budget Small Budget Dynaco's Decision Large Budget $20 million, $25 million $15 million, $0 Small Budget $0, $60 million $25 million, $30 million If Synergy believes
If synergy believes dynaco will go with a large budget that synergy should choose large budget
If synergy believes dynamo will go with small budget than synergy should go large budget
Therefore synergy does have dominant strategy
If Dynaco believes synergy will go with large budget than he will choose large budget and
If he belies synergy will go small budget than he will also choose small budget
Dynaco doesnot have dominant strategy
True,it has Nash equilibrium as (large budget,large budget)
Answer:
diligent I guess
Explanation:
i don't know just putting a word that sounds *smart*
Answer:
Reward to risk ratio = (Expected return - Risk free rate) / Beta
Reward to risk ratio of Y = ( 0.145 - 0.056) / 1.2
Reward to risk ratio of Y = 0.089 / 1.2
Reward to risk ratio of Y = 0.0741666
Reward to risk ratio of Y = 7.42%
Reward to risk ratio of Z = (0.093 - 0.056) / 0.7
Reward to risk ratio of Z = 0.037 / 0.7
Reward to risk ratio of Z = 0.0528571
Reward to risk ratio of Z = 5.29%
Security market line (SML) reward-to-risk ratio is the market risk premium itself which is 6.6%.
Stock Y has a reward-to-risk ratio that is higher than the market risk premium, it is currently under-valued in the market. Similarly, since stock Z has a reward-to-risk ratio that is lower than the market risk premium, it is currently over-valued in the market.
When two products have similar core features, but are produced by different companies, competition results. Research your competition to figure out where you fit in or what to change.
