Answer:
B) As we increase the fraction invested in the efficient portfolio, we increase our risk premium but not our risk proportionately.
Explanation:
In this case we increase our risk also proportionaly same as risk premium. There is a trade-off when we face this decisions about portfolios.
Answer:
$96.20
Explanation:
A share of stock is now selling for $90. It will pay a dividend of $10 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 4% and the expected rate of return on the market is 18%
Find complete question above:
The cost of equity=risk-free rate+beta*(market return-risk-free rate)
cost of equity=4%+1*(18%-4%)=18.00%
The price of the stock today is the present value of the price in a year's time and the expected dividend.
Share price today=(dividend+future share price)/(1+r)^n
share price today=$90
dividend=$10
future share price is the unknown
r=18%
n=1( 1 year from now)
90=(10+FP)/(1+18%)^1
90=(10+FP)/1.18
90*1.18=10+FP
FVP=(90*1.18)-10=$96.20
The answer is C. Kind of characteristics your company values
Answer:
The correct answer is is of less strategic importance than identifying opportunities for outsourcing.
Explanation:
Outsourcing consists in the delegation of functions from one company to another that specializes in this task. Among its greatest benefits are cost reduction and access to new technologies, among others, however, if the service provider does not have sufficient capacity to perform this function, it may damage the image of the contracting company. This tool can be used tactically or strategically and can be adapted to the requirements of the company requesting the service, it is implemented at different levels and in areas of the organization that are not essential to gain competitiveness.
