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BartSMP [9]
3 years ago
11

A mutual fund with beta of 0.8 has an expected rate of return of 14%. If the risk-free rate is 5% and you expect the rate of ret

urn on the market portfolio is 15%, what is the fund's alpha
Business
1 answer:
Nikitich [7]3 years ago
5 0

Answer:

1%

Explanation:

Portfolio's alpha = expected return of the portfolio - required return of the portfolio

Alpha = 14% - (5% + (0.8 x 10%)) = 14% - (5% + 8%) = 1%

A portfolio's alpha is the excess return yielded by the portfolio compared to the market's expected return for a similar investment.

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The CPI is 120 in year 1 and 150 in year 2. All inflation is anticipated. If Gringotts Bank charges an interest rate of 20.00 pe
liq [111]

Answer:

Gringotts Bank real interest rate = 20% - 25% = -5%

Explanation:

real interest rate = nominal interest rate - inflation rate

the inflation rate between year 1 and year 2 = [(CPI year 2 - CPI year 1) / CPI year 1] x 100 = [(150 - 120) / 120] x 100 = (30 / 120) x 100 = 0.25 x 100 = 25%

Gringotts Bank real interest rate = 20% - 25% = -5%

since the interest rate is negative, that means that Gringott Bank is actually losing money by lending it at 20% since the inflation rate is much higher.  

3 0
3 years ago
What is not recommended discipline technique
vredina [299]

Answer:

  1. Spanking
  2. Consequences
  3. Removal of Privileges
  4. Time-Outs
  5. Reward Systems
  6. Shaming

Explanation:

Negative discipline is in type of minor to significant disciplines when the positive techniques are at an inability to accomplish the acknowledged degree of models as endorsed or timetables as an issue of its approaches principally demanded with the expectation of maintaining the uprightness of the association among the work power and people in general all in all. These may establish suspension of representatives, mandatory off, withdrawal of specific advantages, downgrade, excusable, and so forth and the gravity of such disciplines relies on the character of unfortunate behavior/carelessness of moral qualities. While upholding Negative disciplinary activities philanthropic grounds likewise considered, all things considered, as mistake is human, and the family or society or even the nation ought not endure by virtue of awful notoriety and very consideration and thinking alongside the endorsed rules of the work law are carefully tracked with lawful decisions under comparable conditions. Primary thought would be that the group of the oppressed isn't far influenced.

The negative discipline techniques you shouldn't utilize are as per the following:  

  • Enthusiastic Shakedown  
  • Blame  
  • Open Embarrassment  
  • Mockery  
  • Orders  
  • Yelling  
  • Physical Viciousness  
  • Damaging Words  
  • Dangers  
  • Cold Conduct
7 0
3 years ago
_________ integration is where a firm uses a mix of in-house and outsourced activities for the various stages of the vertical ac
guajiro [1.7K]

Answer:

Tapered integration

Explanation:

Tapered integration is a term in organization theory that is a mix of market exchange and vertical integration. Advantages of vertical integration include risk protection, motivation tool for market and internal division, enlargement of input channels with little capital outlays,

the use of information on internal cost to discuss contracts with market.

Its disadvantages are monitoring issues, inefficiency and minimal production.

6 0
3 years ago
Aziz Company sells two types of products, Basic and Deluxe. The company provides technical support for users of its products, at
8090 [49]

Answer:

Req 1 15 $ cost per call

Req 2 Delux = 6,750$ and Basic 2,250$.

Explanation:

This question has two requirement one is to determine the company's cost of technical support per customer service call (Req 1) and the other is to assign technical support cost to each model using activity based costing (Req 2).

Req 1

The first requirement is quite simple. Cost of technical support per customer service call can be determine by dividing expected cost with expected number of customer service call we can get our answer

Cost per CSC =150000/10000 = 15

Req 2

Activity-based costing (ABC) is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

In this question company has two product i.e delux and basic model. Cost for each product can be determine by multplying cost per csc with number of call received for each product.

Delux= 450*15 = 6750

Basic= 150*15 = 2250

3 0
4 years ago
Meredith is stuck in the airport on a long layover while traveling for work. She sees two Wi-Fi’s she can log onto: one says Air
KATRIN_1 [288]
<span>Meredith should first try to log in to Airport Wi-Fi if she has the credentials as this Wi-Fi would be more secure and therefore more desirable for paying bills as this is a sensitive transaction that may expose her personal information to identity theft. However, most regular passengers at the airport may not have the credentials t log into the airport Wi-Fi and this is why the airport makes a free Wi-Fi service available to customers. However, Meredith should be aware that anyone will have access to the free Wi-Fi and therefore signing on to that Wi-Fi can put her personal data at risk.</span>
6 0
4 years ago
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