Answer:
1. Using CAPM, the required return is;
Required return = risk free rate + beta * market risk premium
= 6% + 1.5 * 9%
= 19.5%
2. First find the portfolio beta which is a weighted average of the individual betas;
= (60% * 2.4) + (40% * 0.9)
= 1.8
Now use CAPM
= risk free rate + beta * (Market return - risk free rate)
= 4% + 1.8 * (13% - 4%)
= 20.2%
3.Geometric average can be calculated by;
=( ((1 + r1) * (1 + r2) * (1 + r3)) ^1/n) - 1
= (((1 + 6%) * (1 + 10%) * (1 - 6%)) ^ 1/3) - 1
= (1.09604^1/3) - 1
= 3.1%
Answer:
A. Intrinsic value is 0. Time value is 1.35.
B. 1.35
C. -4.65
Explanation:
Answer:
The correct answer is letter "A": Sigmund Freud.
Explanation:
Austrian neurologist Sigmund Freud (1856-1939) is the father of psychoanalysis. The Freudian motivation theory states -when it comes to sales and consumers- that human beings make purchases to satisfy <em>conscious-functional needs</em> and <em>unconscious needs</em>. Some of the Freudian approaches are used in marketing to study consumer behavior and preferences.
Answer:
I believe that is company culture
Explanation:
reason it just makes sense to me
its definitely not A or B
Answer:
(b) U.S. residents want to buy more foreign bonds. The real exchange rate falls.
Explanation:
A fall in the exchange rate is known as a depreciation in the exchange rate, means the currency is worth less compared to other countries. For example, a depreciation of the dollar makes US exports more competitive but raises the cost of importing goods into the US. As a results, residents will want to buy more foreign goods other than the country own produced goods. This will results in a shift in a demand or supply curve which occurs when a good's quantity demanded or supplied changes even though price remains the same.
