Answer:
<u>13.2%</u>
Explanation:
As per Capital Asset Pricing Model (CAPM),
Expected Rate Of Return = 
wherein,
= Risk free rate of return on treasury bonds
B= Beta , which represents the degree of sensitivity of security return to the market return.
= Return on market portfolio
Thus, Expected rate of return of security X = 6 + 1.2(12 - 6)
= 13.2%
CAPM model is used for calculating expected rate of return. As per the model, the investors expect a risk premium represented by excess of rate of return of market portfolio over risk free rate , in addition for the risk free rate of return.
The risk premium serves as a compensation for investing in risky securities instead of risk free securities.
Answer:
B. Advertising is about buying the attention of an audience of potential consumers. I hope this helps. :)
Explanation:
Answer:
Business analysis
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.
Business analysis refers to a strategic process that typically involves a review of the sales, costs, and profit projections for a new product in order to find out whether the product is in tandem with the objectives of the company.
This ultimately implies that, many organizations and business owners use business analysis to measure the level of satisfaction with respect to the company's objectives and its customers through the process of analyzing or reviewing the sales, costs and profits projection of its new products before pushing them out into the market.
Similarly, cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.