Answer: expected rate of return on the market=12.77%
Explanation:
Given that
Expected return =15.72 percent
beta =1.33
Risk free rate=3.82 percent
According to the CAPM FORMULA,
Expected return = Risk free rate+ Beta( expected rate of return on market - Risk free rate
15.72% = 3.82 % + 1.33 ( Em - 3.82%)
0.1572=0.0382+ 1.33 Em - 0.050806
0.1572- 0.0382+ 0.050806 = 1.33 Em
0.169806=1.33Em
Em = 0.169806/1.33
=0.12767 x 100
12.767 ≈12.77%
expected rate of return on the market=12.77%
Answer: Option (b) is correct.
Explanation:
Given that,
Price of island = $24 worth of goods
Goods include beads, trinkets, cloth, kettles, and axe heads.
Annual interest rate(r) = 4%
Number of periods(n) = 391
Future value will be calculated from the following formula:
= 24 × 4,571,257.29
= $109,710,174.93
Answer:
A. National income must equal domestic product.
True.
Explanation:
National Income is the total value of goods and services produced in a country during a financial period. It is total income from a country's economic activities.
Domestic product is monetary value of all economic activities of a country during a period.
National Income is sum of Investments, Savings, Government expenditures and net exports. National Income equals the domestic products of a country. The equation is as follows:
C + I + G + (X - IM) = DI + NT.
The statement given is true. Disposable income equals the saving plus consumption. The excess of disposable income which is not consumed is saved. Sum of saving and consumption must equal Disposable income in an economy.
Risks associated with operating the business
Answer:
False
Explanation:
When a company carries on a global strategy
, their headquarters will seek to keep substantial control over foreign subsidiaries in an attempt to maximize efficiency and integration, while reducing redundant work or resource spending.
A multidomestic strategy is the one that delegates considerable autonomy to each country manager.