Answer:
Option (B) 5.5%
Explanation:
Data provided in the question :
Factor Risk premium
Factor 1 5%
Factor 2 3%
Beta of stock A on factor 1 = 1.4
Beta of stock A on factor 2 = 0.5
Expected return = 14%
Now,
Expected return
= Risk free rate + (Beta of factor 1 × Risk premium of factor 1) + (Beta of factor 2 × Risk premium of factor 2)
or
14% = Risk free rate + (1.4 × 5%) + (0.5 × 3%)
or
14% = Risk free rate + ( 7% + 1.5% )
or
Risk free rate = 5.5%
Hence,
Option (B) 5.5%
Answer:
C. to improve control of monetary policy and to increase the information available to investors.
Explanation:
- The government regulates the financial markets for the investor as they ate fully informed and are free from the manipulation and thus the financial markets are made strong by the government and more stable for work.
Answer:
The answer is: 4) More frequently than not, the three objectives are compatible.
Explanation:
Toyota is famous for its Just in Time (JIT) management. They are the absolute kings of efficient supply chain management and they were able to do it by making the three objectives compatible. That doesn't mean that they all have to be dealt with at the same time and with the same intensity.
Toyota's first goal was to reduce costs and in order to reduce costs they had to increase their inventory turnover. Then they discovered that in order to keep increasing inventory turnover, they had to compress their cycle time. When they were able to compress their cycle time, their turnover increased even more and their costs were lowered. The system produces continuous feedback and their efficiency keeps increasing.
I once visited one of their factories that produces almost 500 pickup trucks per day and every single work station had available inventory for only 4 trucks; only 4 engines, 16 doors, etc. It is amazing how they do it considering that every 3 minutes one truck is fully produced.
The three objectives are not only compatible, but they are absolutely necessary for the SCM to be effective.
Some of the changes that may pose a great opportunity for business are: (1) change in the demands of the consumers (it may be in style, taste, etc) (2) rapid technology, (3) global banking opportunities, and lastly (4) government enhancing ties with the private owners of different business units.
