Answer:
The correct option is A, Portfolios X and Y are in equilibrium
Explanation:
Adopting Miller and Modgiliani Capital Asset Pricing Model formula, the return on both portfolios can be determined:
Expected return=Risk free return+Beta(Market return-Risk free return)
Portfolio X:
Risk free return=8%
Beta=1.0
Expected return=14%
Let market return be MR
14%=8%+1.0(MR-8%)
14%-8%=1.0*(MR-8%)
6%=MR-8%
MR=6%+8%
MR=14%
Portfolio Y:
Risk free return=8%
Beta=0.25
Expected return=9.5%
let market return be MR
9.5%=8%+0.25(MR-8%)
9.5%-8%=0.25MR-2%
1.5%=0.25MR-2%
1.5%+2%=0.25MR
0.25MR=3.5%
MR=3.5%/0.25
MR=14%
Hence both portfolios are at equilibrium since they have the same market return
Based on the information given the annual interest payments amount to:$800.
<h3>Annual interest payments:</h3>
The 10M represent 1-1,000 bonds which is $10,000
Using this formula
Annual interest payment= Interest rate annually×Bonds
Where:
Interest rate annually=8%
Bonds=$10,000
Let plug in the formula
Annual interest payment=8% of $10,000
Annual interest payment=$800
Inconclusion the annual interest payments amount to:$800.
Learn more about annual interest payment here:brainly.com/question/2151013
To sell products to customers located in a particular area, Sarah can use the option called location targeting. She can specifically target people located in certain places, towns, cities, and exclude some other places: for example, she can target all of California, but exclude the city of San Fransisco. She can also target people based on their demographics, occupation, education, interests...
Answer:
Opening new retail outlets in the city would be the project that could be classified as an expansion project.
Option: (B)
Explanation:
Expanding a company or a business refers to expanding the span and the outreach of the business through activities like increased manufacturing, sales, and marketing of the manufactured products. The activity of expansion can be undertaken by increasing the efficiency of the existing manufacturing plant, by establishing new manufacturing plants, by increasing the number of retail outlets through which the finished goods can be sold directly to the consumers, etc.
When the demand for a particular product increases, it is deemed intelligent to opt to expand the business in order to increase the quantity of output so that the prevalent demand can be met. As the output is increased, the need for more sales facilities also arises simultaneously. Hence, increasing the number of retail outlets is considered as a part of expansion projects.
Answer:
The correct answer is letter "A": salary of a production supervisor.
Explanation:
Variable Costs vary depending on the company's production volume. Variable costs go up when the company produces more goods or services and go down when it produces fewer goods or services. This is compared to fixed costs which do not change in proportion to production volume.
<em>Direct materials, production supplies, commissions, and fees are examples of variable costs. The salary of a production supervisor would fall under this category.</em>
