Answer: Step 1) Find share of market in the Portfolio
(11.5-3.5)x+3.5=6.5
8x=3
x=3/8
x=0.375
=37.5%
SD of market portfolio= 0.375x+0=9.5
x=9.5/0.375
=25.33%
correl = cov / (std 1 * std2)
0.4=COV/0.2533*0.545
COV= 0.2533*0.545*0.4=0.05
cov of 2 assets = b1 * b2 * variance of market
0.05=B1*1*0.2533^2
B of security=0.0032
Capm Model
3.5+0.0032(11.5-3.5)=3.5256% expected return
Explanation:
Step 1) Find the share of market in the portfolio in order to find market SD
Step 2) Find Covariance betweens security and market by using both SDS and correlation
Step 3) Find Beta of Security using Co variance
Step 4) Use the Beta in CAPM model in order to find expected return
Answer:
Teleology is a philosophical idea that things have goals or causes. It is the view that developments are due to the purpose or design which is served by them
Answer:
When labor productivity is high.
Explanation:
According to neoclassical economic theory, real wages are equal to the marginal product of labor (MLP). The marginal product of labor is the extra output produced by one extra unit of labor (one extra worker).
If the MPL is high, this means that workers are very productive, and therefore, are paid a high real wage accordingly.
This is why countries with high labor productivity like the U.S. or Switzerland also have very high real wages.
Answer:
<em><u>Thus, micro-finance has become one of the most effective interventions for economic empowerment of the poor. Microfinance is an economic development approach that involves providing financial services, through institutions, to low-income clients, where the market fails to provide appropriate services (Kumudini, 2015).</u></em>
