Answer:
6.75%
Explanation:
Data provided in the question:
Beta of the stock = 1.12
Expected return = 10.8% = 0.108
Return of risk free asset = 2.7% = 0.027
Now,
Since it is equally invested in two assets
Therefore,
both will have equal weight = 
= 0.5
Thus,
Expected return on a portfolio = ∑(Weight × Return)
= [ 0.5 × 10.8% ] + [ 0.5 × 2.7% ]
= 5.4% + 1.35%
= 6.75%
Answer: Mental budgeting.
Explanation: This concept is very much in consistent with the concept of mental accounting. The concept of mental accounting says that a person has already classified the areas where he will be spending his income and each area has its own importance and is given particular amount to that. Contrary to this, however, the mental budgeting is the phenomenon which uses the same technique but in such a way that it calculates the amount to be spend on multiple areas beforehand and using the rational cognitive ability, imagine the possibility that if an area would be left without spending money on that, would that help him save or not.
Answer:
A. effective
Explanation:
As more and more one writes better, there will be communication of right message and ideas that will be passed across to the audience. As with other disciplines, continuous practice would make one to be better in terms of writing .There should also be search for knowledge which will assist to develop writing skills.
Through continuous writing, one's writing will be more effective having come across different hurdles. The hurdles here means challenges one would encounter at the beginning but which have now become Surmountable due to continuous practise.
Answer:
Diseconomies of scale are when production output increases with rising marginal costs. ... Fixed costs do not change with increases/decreases in units of production volume, while variable costs are solely dependent, which results in reduced profitability. They show how well a company utilizes its assets to produce profit.
Explanation:
It's true.
Answer:
The correct answer for option (a) is $1.15 and for option (b) is $1.33.
Explanation:
According to the scenario, the given data are as follows:
Present value (PV) = $1
Rate of interest (R) = 1.18% per month
Time period (for option a) (t1)= 12 months
Time period ( for option b) (t2)= 24 months
So, we can calculate the future value by using following formula:
FV = PV × ( 1 + R )^t
(a). By putting value in the formula:
FV = $1 ( 1 + 0.0118)^12
= $1 × 1.1511610877
= $1.15
FV = PV × ( 1 + R )^t
(b). By putting value in the formula:
FV = $1 ( 1 + 0.0118)^24
= $1 × 1.32517184983
= $1.33
