Answer:
The expected rate of return on the market portfolio is 14%.
Explanation:
The expected rate of return on the market portfolio can be calculated using the following capital asset pricing model (CAPM) formula:
Er = Rf + B[E(Rm) - Rf] ...................... (1)
Where:
Er = Expected rate of return on the market portfolio = ?
Rf = Risk-free rate = 5%
B = Beta = 1
E(Rm) = Market expected rate of return = 14%
Substituting the values into equation (1), we have:
Er = 5 + 1[14 - 5]
Er = 5 + 1[9]
Er = 5 + 9
Er = 14%
Therefore, the expected rate of return on the market portfolio is 14%.
Answer:
transactional leadership
Explanation:
Transactional leadership is a style in which the leader tries to encourage its employees to perform well in their jobs by using rewards and punishments. According to this, the answer is that transactional leadership focuses on clarifying employees’ role and task requirements and providing followers with positive and negative rewards contingent on performance.
Answer:
Jensen company has a contribution margin ratio of 45%. This means that its variable costs are 55% of sales.
This statement is true
Explanation:
Contribution margin ratio is the ratio of contribution to sales. Since the contribution margin ratio is 45%, it implies that variable costs are 55% of sales.
Answer:
The question is incomplete since the requirements are missing, but I guess that it deals with the bank's ability to create money.
When you deposit money into a bank account, the bank will then lend most of that money to other clients. This is possible due to the money multiplier = 1 / required reserve rate = 1 / 4% = 25
the total increase in money supply = $12,000 x 25 = $300,000
