In 2012,70%of rich people were self made in the USA.That is the updated answer in 2012.
Answer:
1) Expected return is 12.12%
2) Portfolio beta is 1.2932
Explanation:
1)
The expected return can be calculated by multiplying the return in a particular state of economy by the probability of that state occuring.
The expected return = (0.32 * -0.11) + 0.68 * 0.23
Expected return = 0.1212 or 12.12%
b)
The portfolio beta is the the systematic riskiness of the portfolio that is unavoidable. The portfolio beta is the weighted average of the individual stock betas that form up the portfolio.
Thus the portfolio beta will be,
Portfolio beta = 0.33 * 1.02 + 0.2 * 1.08 + 0.37 * 1.48 + 0.1 * 1.93
Portfolio beta = 1.2932
Materials that become independent components of the finished product and whose cost can be easily and conveniently traced to the finished products are <u>direct materials.</u>
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<h3>What are direct materials?</h3>
Those components pass into a manufactured product are called as Direct materials. Direct materials cost refers to the cost of direct materials which may be without problems recognized with the unit of production.
For example, the value of glass is an immediate substance cost in light bulb manufacturing.
Hence, Materials that become independent components of the finished product and whose cost can be easily and conveniently traced to the finished products are <u>direct materials.</u>
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A company that uses a strategy of selling its products to a distributor in another country would be using <u>exporting.</u>
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<h3><u>How Do Exports Work?</u></h3>
Exports are products and services made in one nation and offered to customers in another. Imports and exports together make up global trade.
Because they give people and businesses access to a larger market for their products, exports are crucial to modern economies. Fostering economic commerce, and boosting exports and imports for the advantage of all trading parties, is one of the primary goals of diplomacy and foreign policy between countries.
<u>Benefits of Exporting for Businesses</u>
There are numerous reasons why businesses export their goods and services. If the goods open up new markets or widen existing ones, exports can boost sales and profits and may even offer the chance to gain a sizeable portion of the worldwide market. Exporting businesses diversify their markets to reduce business risk.
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