Answer:
The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.
The correct answer is B
Explanation:
A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.
A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.
A stock with a beta of 0.74 does not provide the highest risk premium.
Us treasury bill does not provide any risk premium since it is the risk-free rate.
A portfolio with a beta of 1.01 does not produce the highest risk premium.
It is called Affective commitment
Affective commitment is aimed to create positive emotional attachment from the employees toward the company.
Providing the access will make the low-level employees in the company feel much more comfortable in adressing their concern towards the high-level employees
<span>When downsizing employee the most effective method I feel will be to based the decision on facts or documented evidence that may be difficult to dispute. The source of data can be used maybe the last few performance appraisal results, absenteeism , productivity rate and other soft skills to measure suitability to the job. Create a matrix identifying the criteria and measure the grade of each employee based on the criteria. In a way this is a measured evaluation.
The least effective i would think are those decisions based on emotional considerations.</span>
