Answer and Explanation:
Given:
For portfolio A
Expected return of 12%
beta = 0.5
Risk premium for A = ?
For portfolio B
Expected return of 13%
beta = 0.4
Risk premium for B = ?
Risk-free rate of return = 5%
Computation:
For portfolio A
12% = 5% + (0.5 × risk premium for A)
risk premium for A = 14%
For portfolio B
13% = 5% + (0.4 × risk premium for B)
risk premium for B = 20%
short position "A"
Long position "B"
Answer and Explanation:
According to the given scneario, the identification of the marketing mix i.e. four p's are product, price, place and the promotion
1. Product: The product is food cafe. The main thing about the food is the taste, how it looks. The product should be attractive, full of taste.
2. Price: The price of the food for each type of product should be reasonable so that everyone could afford it. Also the price is depend upon the competitor price
3. Place: The place should be very attractful so that many customers could be come. It could be in river side or lake view. Also if the cafe provides the home delivery without any charges this things would attract most of the customers
4. Promotion: The promotion of the food cafe could be done in social sites, radios, newspaper so that the public at large could know about it
The answer is C. analyze your current personal and financial situation
Answer: B. One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect
Explanation:
From the information given in the question, the journal entry at the time of sales will be represented as:
Debit Accounts receivable $1,750
Credit Sales $1750
Now, when the credit receipt is received as illustrated in the question, the journal entry will be:
Debit Cash $1,750
Credit Accounts receivable $1,750
Therefore, one asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.
The correct option is B.
