Answer:
True
Explanation:
There is a general consensus that one has to be very conservative and avoid spending more than 35 percent of pretax income on home insurance payment, property tax, and mortgage. However the conservative model clearly suggests that mortgage payment should not exceed 25 percent of take-home pay and any mortgage loan should not exceed a 15 year tenure.
Answer:
e. Portfolio P has the same required return as the market (rM).
Explanation:
The answer is e. Portfolio P has the same required return as the market (rM).
let's find the beta of the portfolio = 0.5 * 0.7 + 0.5 * 1.3 = 1.0
From the information above , the required return on the portfolio = risk free rate + beta * (Expected market return - risk free rate) = risk free rate + 1 * (Expected market return - risk free rate) = Expected market return.
Answer:
Introduction, Sales Pitch and Conclusion.
Explanation:
Answer:
The workers will only produce oranges.
Explanation:
'Opportunity cost' is an important concept which shows the relationship between choice and scarcity. For example: One can spend money and time on one thing at a time but loses the opportunity do perform the other things, which would be his opportunity cost. Like you take a vacation for the money you have but the opportunity cost is not having a new car.
Relative price is the price of one commodity in terms of another. In the given situation, opportunity cost of an apple is 3 oranges and relative price of apple is 3, so the workers will produce only oranges, as it will be more profitable.