Answer:
2.21
Explanation:
Portfolio beta = Respective beta*Respective weight
<em>Beta of market=1;Beta of risk-free assets=0</em>
1.28 = (0.25*0) + (0.31*1) + (0.44*Beta of Stock B)
1.28 = 0 + 0.31 + 0.44*Beta of Stock B
1.28 - 0.31 = 0.44*Beta of Stock B
Beta of Stock B = 0.97/0.44
Beta of Stock B = 2.204545454545455
Beta of Stock B = 2.21
Answer:
it's Jake, Kim, or Lyron or basically the first one but yours appears to be different
Answer:
left as well as the contractionary monetary policy, then bring about the
increase of interest rate as well as reducing equilibrium quantity of money.
Explanation:
Liquidity Preference model can be regarded as a model gives suggestions about investor and interest rate, the model entails that high interest rate as well as premium on securities associated with long-term maturities with higher risk should be demanded by investors, reason behind this suggestions is that most investors will always go for cash as well as available highly liquid holdings, all things been equal. It should be noted that Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the left as well as the contractionary monetary policy, then bring about the increase of interest rate as well as reducing equilibrium quantity of money.
Answer:
7.3%; 12.17%; 0.6 times; 15.95%
Explanation:
Return on assets:
= Net Income ÷ Average total assets
= ($65,700 ÷ $900,000) × 100
=
7.3%
Profit Margin:
= Net Income ÷ Net Sales
= ($65,700 ÷ $540,000) × 100
= 12.17%
Asset Turnover:
= Net Sales ÷ Average Total Assets
= $540,000 ÷ $900,000
= 0.6 times
Return on Equity:
= Net Income before dividend ÷ Equity
= [($65,700 + $30,000) ÷ $600,000] × 100
= ($95,700 ÷ $600,000] × 100
= 15.95%
Answer:
The correct answer is option c.
Explanation:
A perfectly competitive market has a large number of buyers and sellers. The firms are price takers and the price is determined by the market forces. Thus the monopoly firms face a horizontal demand curve. This horizontal line represents price, average revenue, and marginal revenue. The equilibrium is obtained where price, (average revenue and marginal revenue) is equal to marginal cost. There is no restriction on entry and exit of firms in the long run. That's why firms face a break-even in the long run.
While in a monopoly market there is a single firm. This firm fixes price higher than marginal cost. The demand curve of the monopoly is a downward sloping showing relatively elastic demand. A monopoly firm can earn profits in both the short run as well as the long run.
