<h3>I will try providing the best and latest robotics and gadgets to the school for better studying. You can elaborate it..</h3>
Answer:
10.5%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
where,
Risk free rate of return = 7%
Market rate of return = 14%
And, the beta is 0.5
So the expected return is
= 7% + 0.5 × (14% - 7%)
= 7% + 0.5 × 7%
= 7% + 3.5%
= 10.5%
Fees charge = 2%
Investment worth = $500,000
Amount due = 2/100 * 500,000 = 10,000
The amount Andrew will receive as compensation is $10,000.
Dollars - currency exchange market
Shares -stock markets
Wheat-commodity market
I guess the correct answer is the narrow view, or invisible hand theory
.
The narrow view, or invisible hand theory, holds that producing profit is more important than being socially responsible.