Th illumination stage is the stage at which the ideas from creative thinking began to flow.
<h3>What is a
creative thinking?</h3>
This refers to a thinking process that is intented to gain a new insights and different ideas through existing information
The stages of the creative thinking includes:
- Preparation
- Incubation
- Illumination
- Evaluation
- Verification
In conclusion, the illumination stage is the stage at which the ideas from creative thinking began to flow because the ideas are been illuminated from the mind.
Read more about creative thinking
<em>brainly.com/question/24597584</em>
Answer:
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
Explanation:
In order to calculate the average beta of the new stocks to achieve the target required rate of return we would have to calculate the following:
average beta of the new stocks = (Required Beta-(portfolio /total fund) *old beta)/(additional portfolio/total fund)
To calculate the Required Beta we would have to use the formula of Required rate of return as follows:
Required rate of return=Risk free return + (market risk premium)*beta
0.13=0.0425+(0.06*Required Beta)
Required Beta = (0.13-0.0425)/0.06
Required Beta = 1.45
Therefore, average beta of the new stocks =(1.45-($40/$100) *1)/($60/$100)
average beta of the new stocks =1.05/0.6
average beta of the new stocks =1.75
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
Answer: Blah Blah Explanation: Because
