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%
Answer: B
Explanation:
you can pass on the right if you are driving on a one way road.
Answer:
Return
Explanation:
Supply chain management (SCM) is the management of interconnected activities involved in movement and storage of raw material, work in progress and finished goods. The process is used to check if supply chain activites are working smoothly or not, also, is it cost effective or not?. SCM follow basic five component:
- Plan
- Develop
- make
- Deliver
- Return.
Return is a stage where supply chain managers must create a responsive and flexible network to support customers who have problems with delivered products.
This example illustrates INSIGHT. A person is said to have an insight when a solution to a problem present itself to him or occur to him suddenly. Insight refers to the sudden discovery of a perfect solution after trying unsuccessfully to fix a problem.
Answer: The correct answer is A) The subsidiary revalues assets and liabilities to their fair values as of the acquisition date.
Explanation: Push down accounting is used when a company buys another company. This type of accounting revalues the assets and liabilities of the acquired company at a fair value on the date of acquisition.
