Yes I believe your scenario is correct
Answer:
C) E(r) = 0.10; Standard deviation = 0.10.
Explanation:
the risky portfolio with an expected rate of return of 0.15 and standard deviation of 0.15 lies on the same indifference curve as another with:
- expected return of 0.10, standard deviation of 0.10
- expected return of 0.05, standard deviation of 0.05
- expected return of 0.20, standard deviation of 0.20
- etc.
All the points in this indifference curve will have an expected return = to the standard deviation, you exchange one unit of expected return per one unit of standard deviation.
$6.00 + 1.50(x) ≤ $12.00
1.50 x ≤ $12 - 6
1.50 x ≤ 6
x = 6.00÷1.50
x= 4 hours
Answer: The following statements is not correct: <em><u>"Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.</u></em>
This states the condition where a private organization starts initial public offering, and therefore become a publicly traded and closely-held entity. Enterprises go public to increase capital in order to expand.
Going public has nothing in inclination with organization's true intrinsic value or its liquid market.
When the government lowers income taxes, consumption is Stimulated, causing a <span>rightward shift of the AD curve.
By lowering income taxes, the government will ensure an increase in average disposable income (part of the income that could be used to buy things). This will stimulate consumption and rightward movement in the Curve.</span>
