Answer:
A. the portion of the investment opportunity set that lies above the global minimum variance portfolio.
Explanation:
The Efficient frontier refers to the portfolios set that involves that expected return whose return is high at the level of minimum risk so the asset that contains the high risk profile that investment opportunity set portion should be above the variance portfolio i.e. minimum globally
Therefore the correct option is a.
Based on the description, <span> this sales promotion is a Coupon.
Coupon is a type of marketing tools that provide consumers with free products or financial discount if reedemed to the sellers.
This type of marketing tool is used in order to persuade customers to buy a certain type of products/services that company prioritized..</span>
<span>Game theory is the study of math and
logic behind problems and cooperation. It has logical steps that can be used in
making life choices. In game theory, a dominant strategy of Nash equilibrium
exist. Nash equilibrium is reach when players choose their own dominant strategy
in no unilateral profitable deviation from any other players. In addition, no
players would take action as long as other players remain the same. Therefore,
Nash equilibrium is self-enforcing strategy. </span>
Answer:
The required rate of return is 7.20%
Explanation:
The price of the preferred stock share is the dividend which is divided through the required rate of return. It is the same as the model of the constant growth, with the dividend growth rate of the 0%.
This is the special case of the model of the dividend growth where the growth rate is 0 and the level of perpetuity.
So, using the equation, compute the price per share of the preferred stock as:
Rate = Dividend (D) / Price (P0)
where
Dividend is $5.80
Price (P0) is $80.50 per share
So, putting the values above:
Rate = $5.80 / $80.50
Rate = 7.20%
Answer:
The mean income is the average income of all households in the country, while the median income divides the total into two groups, those who earn above the median and those who earn below the median (i.e. the median would be middle point.)
If income inequality has increased then the mean income should rise above the median income since it is affected by extremes, e.g. the 10% richest earn 9 times more income than the lower 90%.
Since we are not given the increase in income inequality, we can assign any positive slope to the mean income.
