Answer:
The rate of return on the risky asset is 16% and on treasury bill is 6% and we need a return of (1100-1,000)/1000= 10% or 0.1
If we think of x as the percentage investment in risky asset and 1-x as the investment in non risky asset we can mathematically find what proportion we need to invest in each asset to get this return.
16x+ 6(1-x)=10
16x+6-6x=10
10x=4
x=4/10
x= 0.4
This equation tells us that we should invest 40% in risky assets and 1-x which is 60% in treasury bills. We can test our answer by putting these values and see if the return is 10 %
(0.4*16)+(0.6*6)= Rate of return
Rate of return=10%
10% of 1000 = 100
100+1000=$1100
Explanation:
Answer:
make a 40% down payment upfront
Explanation:
The best arrangement that would help him accomplish this would be to make a 40% down payment upfront. The best way to build equity as fast as possible is to put down the biggest down payment that you can. The bigger the down payment, the higher the boost in equity that you will receive. That is why it is the best option. Anything above 20% down payment is the ideal scenario, while 40% would be perfection.
Answer:
The correct answers are letters "A", "C", "D", "E", and "F".
Explanation:
Structural unemployment is an economic mismatch when workers fail to find jobs and employers with available openings cannot find workers. This problem can be created by technological advances and rapid relocation of available jobs along with other economic factors such as rapid technological changes, and government policy. In that sense:
<em>A.</em><em> A newspaper photographer loses his job due to the decreased circulation of the physical newspaper. His boss says more people are using the Internet to get their news. (</em><u><em>Technological change)</em></u>
<em>C.</em><em> A teacher at the local high school loses his job when declining enrollment causes the school district to consolidate schools. </em><u><em>(Government policy)</em></u>
<em>D.</em><em> A worker on an assembly line loses her job when the company outsources jobs to China. </em><u><em>(Job relocation)</em></u>
<em>E.</em><em> Your mechanic closes his shop because recent advances in technology mean that cars need much less servicing, and he doesn’t have enough work to keep the business open. (</em><u><em>Technological change)</em></u>
<em>F.</em><em> Two employees of a tax accounting firm are laid off because new tax software has made it easier for people to do their own taxes. (</em><u><em>Technological change)</em></u>
Answer:
d. In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast.
Explanation:
In context of analyzing business environment, there are two forms of rate of change: stable and dynamic.
In stable environment, the rate of change is incremental i.e things change slowly. The movement from the present to the future is not rapid in a stable environment. Management can make a safe prediction in a stable environment because what works today will likely work tomorrow. Example of a business in a stable environment is restaurant or food industry.
In contrast, rate of change in dynamic environment is monumental. Things change fast in dynamic environment. There is no safe prediction that works today will work tomorrow. In a dynamic environment, management has to keep up with this fast change by drafting a flexible strategic plan.
So option D is correct : In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast
All options are not fundamentally wrong in the context of the difference between a stable and dynamic environment.
Answer:
Board of Directors
Explanation:
There is always a conflict of interest between the stockholder's and the management of the organization. The is due to their conflict in the interest. The management receives the remuneration which ultimately reduce the stockholder's wealth. Due to this reason the stockholder's need to ensure that the management ia working in the interest of stockholders not in their own. A supervising governing is placed over the management which protects the stockholders interest by overseeing all the operational, financial and other matters.
