Answer:
Option D is the correct option
Explanation:
To find the optimal fund to combine with risk free rate of return, we will use Coefficient of variation,
Coefficient of variation(CoV) = Standard Deviation/Expected Return
CoV of Buckeye = 14%/20% = 0.7
CoV of Wolverine = 11%/12% = 0.9167
So, higher the CoV higher the risk, we will take Buckeye to combine with Risk Free Return.
Hence, Option A
- Required target return of portfolio = 22%
Risk Free return = 8%
Buckeye Return = 20%
Let the weight of Buckeye be X ,& weight of risk free be (1-X)
Required return = (WRF)*(RRF) + (WB)*(RB)
22 = (1-X)(8) + (X)(20)
22 = 8-8X + 20X
14 = 12X
X = 1.17
SO, weight of Buckeye is 1.17 or 117%
while weight of Risk free is -0.17 (1-1.17) or -17%
Hence, ans is OPTION D
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Answer: The creation of a government set price for gasoline by ni government.
Explanation:
In 1970 president Nixon inteoduced a soft artificial price ceiling on gasoline in the United States. This was as a result of the OPEC crisis of 1970s. It is a good example of scenerios where the cost of government action outweighs the benefits. this was due to the creation of the government-set price which would cause the quantity demanded to be more than the quantity supplied because gasoline was cheaper now.
Answer:
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Explanation:
Answer: Option B
Explanation: In simple words, spending multiplier refers to the effect that the spending from the govt have on an economy. As per this effect, if the govt. spends a little on the economy the multiplier effect will come into force and make a major impact on the organisation.
Government spending refers to the total outflow of resources made by the govt. for the betterment of economy. However the decrease in tax will not directly be considered an outflow but it surely does increase their revenue leading to more demand in the economy.
Hence from the above we can conclude that the correct option is B .
