Hello there!
I think you're answer would be -- His message did not set a clear and specific production of the target. Maybe, if he had looked over what really needed to be worked on, he could increase productivity in what really needed to be done. But, he gave no specific directions, only telling workers to "increase productivity".
Tell me if its wrong. Please... and thanks!
I hope this helps you!
~Alexa
Answer:
As the required rate of return of the security (9.52%) is more than the expected rate of return (8%), the security or stock is overpriced.
Option b is the correct answer.
Explanation:
A security is underpriced when the required rate of return of the security is less than the expected rate of return and vice versa.
Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
r = 0.04 + 0.92 * (0.1 - 0.04)
r = 0.0952 or 9.52%
As the required rate of return of the security (9.52%) is more than the expected rate of return (8%), the security or stock is overpriced.
Answer:
$25,200
Net operating income would reduced by $25,200
Explanation:
As per the given question the solution of financial advantage (disadvantage) of dropping B90D is provided below:-
Net operating income of Dropping B90D = Sales - Variable Expenses - Fixed Manufacturing Expenses - Fixed Selling & Administrative expenses
= $794,600 - $412,900 - $191,000 - $165,500
= $25,200
So, we have calculated the financial advantage (disadvantage) of dropping B90D by using the above formula.
Net operating income would reduced by $25,200
Answer:
4.5%
Explanation:
Stock R (Beta) = 1.5
Stock S (Beta) = 0.75
Expected rate of return on an average stock (Rm)= 10%
Risk free rate (Rf) = 4%
Required Return (Re) = Rf +(Rm-Rf) B
Required Return = 0.04 + (0.10-0.04) B
Required Return = 0.04 + 0.06B
Stock R = 0.04 + (0.06 * 1.50)
Stock R = 0.04 + 0.09
Stock R = 0.13
Stock R = 13%
Stock S = 0.04 + (0.06 * 0.75)
Stock S = 0.04 + 0.045
Stock S = 0.085
Stock S = 8.5%
Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.
= 13% - 8.5%
= 4.5%
Hello new friend I’m very nice