Answer:
The reward to risk ratio for stock Y is 7.22%
The reward to risk ratio for stock Z is 5.50%
Explanation:
First and foremost, it is very important to note that the reward-to-risk ratio of a stock is the risk premium paid by the stock divided by its asset Beta.
The risk premium is calculated as stock expected return minus risk free rate
The risk premium is denoted by (rm – rrf) in Capital Asset Pricing Model of Modgiliani and Miller
For stock Y risk premium is 18.2%-5.2%=13%
For stock Z risk premium is 9.6%-5.2%=4.40%
For stock Y reward to risk ratio=13%/1.8=7.22%
For stock Z reward to risk ratio=4.40%/0.8=5.50%
Hence stock Y has a higher reward to risk ratio
Answer:
Whereas the SRAS curve is upward sloping, the LRAS curve is vertical because, given sufficient time, all costs adjust.
Explanation:
Time management is important in daily activities. People who manage their time well, succeed in life. Time management and critical thinking are linked to each other. Critical thinkers manage their time according to the situation. A critical thinker will use his thinking ability to judge and understand the situation and manage the time.
Answer:
Answer is option A, i.e. Strategy analysis.
Explanation:
Strategy analysis can be understood as a process of evaluating the environment in which the business operates. This environment includes both internal as well as external environment. For a business to be successful, it is important that both internal, as well as the external environment, should be taken into consideration. Therefore, the correct answer is option A.
