False because they are always going to compare no matter what it is.
Answer:
No effect, remain unchanged
Explanation:
The demand curve which is vertical, it means that the demanded quantity will remain the same, irrespective of the change in the price. In short, when price will increase, the quantity demanded will not be effected, whereas when price decrease then also the quantity demanded will not be effected or change.
So, if the demand curve of the investment is vertical, then the decrease in the rate of the interest will no effect the investment and the aggregate or total demand will also be remain unchanged as there is no effect on investment.
The system is known as <em>Organizational Culture</em>
We can define "Organizational Culture" as an existing belief which guides staff in understanding what to do & not and includes practices, values, assumptions about their work.
- Organization cultures creates the structure of an organization through values, sociology, and psychology
- Examples of organizational culture includes the company's philosophy, values, expectations, experiences etc
In conclusion, the system of shared beliefs and values which exist in an organization is known as Organizational Culture.
Learn more about Organizational Culture here
<em>brainly.com/question/13996722</em>
Answer:
The Required rate of return on Portfolio is 9.67%
Explanation:
In order to get the answer first we need to calculate the new beta of portfolio. The weight of portfolio and new stock is calculated using total value of investment in portfolio and multiplying by the total investment we get new beta.
(3M / 3.6M) x 1.10 + (0.6M / 3.6M) x 0.60 = 1.01667
Through using the CAPM Model we get risk premium of Existing Portfolio:
Required rate of return of portfolio = RF + ( Rm - RF ) x beta
10% = 5.6% + (Rm -RF) x 1.10
10% - 5.6% = (Rm - RF) x 1.10
4.4% / 1.10 = (Rm - RF)
(Rm - RF) = 4%
After getting the Risk Premium we can CAPM model equation to get New Required rate of return.
Required rate of return of portfolio = RF + ( Rm - RF ) x beta
Required rate of return of portfolio = 5.6% + 4% x 1.01667
Required Rate of Return of Portfolio = 9.67%
