The portfolio that contains the common return on a mixture of market index with the same beta is often known as protection market line.
<h3>Is safety market line the same as CAPM?</h3>
The safety market line (SML) is a visual representation of the capital asset pricing model (CAPM). SML is a theoretical representation of the predicted returns of belongings primarily based on systematic, non-diversifiable risk.
<h3>How do you study a security market line?</h3>
The two-dimensional correlation between anticipated return and beta can be calculated via the CAPM formula and expressed graphically via a safety market line, or SML. Any protection plotted above the SML is interpreted as undervalued. A safety under the line is overvalued.
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Answer:
Competitors
Explanation:
The other employer in thesame area causing difficulty for the organization in recruiting is a competitor to the organization on recruitment. It's an external factor acting on recruitment efforts as they are able to pay higher wages which makes willing and capable workers choose them over the organization.
External forces are forces that cannot be controlled by the organization. For example, in this case, the organization cannot control the competitors wages offer. The wage payments of the competitor is what is affecting the recruitment efforts of the organization.
Carlos pays <u>service charges</u> of $1,721. 31 while paying off the loan amount.
The <u>principle amount</u> is given as $22,375 at 5.49% <u>interest </u>or 0.0549. It needs to be <em>compounded quarterly</em>, which is in <u>4 months for 7 years.</u>
The interest amount would be:
The<u> value of n </u>is computed as:
Therefore, the discount factor is derived as follows:
Here, the monthly payment is calculated by:
Thus, the final payment for 7 years that is compounded quarterly would be:
The service charge here would be:
Hence, the<em> service charge is 1721.27</em> by deducting the <u>final payment from the total payment. </u>
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Answer:
see below
Explanation:
Financial statements are formal records that provide information about the business's financial activities, status, condition, and position.
Limitation of Financial Statements
1. Statements are based on historical data.
Financial statements do not indicate the current worth of a company. The value of assets and liabilities are subject to change, but financial statements record them at cost. The value of assets and liabilities is not altered to reflect the market cost. Therefore, the balance sheet presents misleading reports if a large part is based on historical costs.
2. Statements are subject to personal judgment:
The values of assets, as presented in the balance sheet, are influenced by the opinions of the person preparing them. For example, depreciation and amortization of assets depend on the personal judgment of the accountant.
3. Inflationary effects
Financial statements do not consider the effects of inflation. The reports and the statements' values are not the real values as inflation is known to erode a currency's strength.
4. Statements do not record Intangible assets.
Not recording intangible assets such as intellectual properties underestimate the value of a business.
Answer:
I think D. increase reserves by $300.