Answer:
The answer is:
* Expected return on the market: 2.74%
* Risk-free rate: 11.45%
Explanation:
Denote Rm is expected return on the market and Rf is risk-free rate. We have:
* For stock Pete: 14.5% = Rf + 1.35 x ( Rm - Rf) and
* For stock Repete: 11.8% = Rf + 1.04 x (Rm-Rf)
From the two equations above, we have: 0.31 * (Rm- Rf) = 2.7% <=> Rm - Rf = 8.71%;
So we have: 14.5% = Rf + 1.35 * 8.71% <=> Rf = 2.74%;
=> Rm = 2.7% + Rf = 8.71% + 2.74% = 11.45%.
So, Rf = 2.74%; Rm = 11.45%.
Answer and Explanation:
The computation of the overhead rate for each activity is as follows;
Overhead rate is
= Respective overhead cost ÷ Respective activity
For Machine setups
= ($202,800 ÷ 2,600 setups)
= $78 per setup
For Machining
= ($364,500 ÷ 24,300 machine hours)
= $15 per machine hour
For Inspection
= ($88,000 ÷ 1,600 inspections)
= $55 per inspection
In this way it is calculated
Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
Answer:
The famous study which asked employees to rank a list of job related factors in order of what motivates them most was introduced and supervised by Federick Herzberg.
Explanation:
Federick Herzberg was an american psychologist ( clinical psychologist ) , who was know to be a great thinker of management and motivational theories. He was the one who introduced the concept of job enrichment and gave the two factory theory of job satisfaction ( also know as motivation - hygiene theory ) , according to which employees or people in general are influenced by two factors - motivation and hygiene.
Where if the hygiene factor is not present in the work environment than it can lower motivation and motivational factors are the ones which can increase an employees motivation.
