Answer: Expected Return = 12%
Explanation:
Yield on short-term government securities = 4%
The expected return required by the market for a portfolio with a beta of 1 = 12%
Now, according to the capital asset pricing model:
Expected Return = Risk-free rate + Beta × (expected return on the market - risk-free rate)
= 4 + 1 (12 - 4)
= 12%
∴ The expected return on the market portfolio is 12%.
Answer:
Blogs, wikis, and discussion boards are web-based platforms through which students can create and share content as well as interact with each other and the instructor.
Explanation:
Developing new menu offerings has been one of the commonly used marketing strategies by restaurants to address changes in competition to other competing restaurants. They advertise their menu by creating banners and using social media to inform the customers on their new menus.
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.
<h3>
What is line extension?</h3>
- The process of expanding an established product line is referred to as line extensions.
- When a corporation with a well-known brand releases new items in a product segment.
- The corporation capitalizes on the existing product's value to the market and presents new options to consumers.
- A corporation launches a brand line extension by using the brand name of an existing product to launch a new, somewhat different item in the same product category.
- Line extension would be demonstrated if the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip while continuing to produce all of its existing Cool Whip products.
Therefore, if the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.
Know more about line extension here:
brainly.com/question/14720584
#SPJ4
The complete question is given below:
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of
a. a brand extension.
b. quality modification.
c. line extension.
d. a new-to-the-world product.
e. functional modification.
