The effect that could be called to the given scenario above is the referral marketing. The referral marketing is a way of being able to promote products to customers, specifically new, with the use of referrals. It could be seen above as after Jack recommended it to Jill, Jill will now refer the product that she loves to another person that could be a potential new customer.
Answer:
reduce
Explanation:
Note that the bank has excess funds and thus wants to increase the number of available loans which in turn increases investment in the economy. For this strategy to work, the bank will reduce the interest rate it places on loans in order to entice its customers to procure the loans it offers.
For example, a bank that usually gives out 150 loans at 15% Interest rate may because of new banking policy and excess reserve decide to increase its loan capacity to around 300 loans per annum at an interest rate of 10%.
Answer:
Beta of Portfolio is 0.98
Explanation:
<u>Given</u>: Investment in security X = $35,000
Investment in security Y = $65,000
Beta of X = 1.5
Beta of Y = 0.70
Beta is a measure of degree of responsiveness of a security return with respect to market return.
The portfolio beta is the weighted average beta of individual stock beta's in a portfolio.
Beta of portfolio = Beta of Stock X × Weightage of money invested in X + Beta of Y × Weightage of money invested in Y
Beta of Portfolio = 1.50 × 
+ 0.7 × 
Beta of Portfolio = 0.525 + 0.455 = 0.98
Answer:
Note receivable is a written promise by a supplier agreeing to pay a sum of money in the future.
While
Account receivable is the funds owed by the customers.
