<span>A lack of trust between two parties engaged in international trade is exacerbated by the </span><span>problems of using an underdeveloped international legal system to enforce contractual obligations. When a strong internal legal system is put place, there is a better chance for trust to be held in trading. When doing international trade both parties need to understand their roles and responsibilities and hold up to the end of the deal. Without trust it's likely the two countries will stop trading with one </span>another.
Answer:
The expected return on a portfolio is 14.30%
Explanation:
CAPM : It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets.
For computing the expected rate of return of a portfolio , the following formula is used which is shown below:
Under the Capital Asset Pricing Model, The expected rate of return is equals to
= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)
= 8% + 0.7 × (17% - 8%)
= 8% + 0.7 × 9%
= 8% + 6.3%
= 14.30%
The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also.
Hence, the expected return on a portfolio is 14.30%
Lauren made an error in step 3 because she should have subtracted expenses from income.
Net income = (Total of all sources of income)- (Total of all bills and expenses)
You must subtract expenses because they are things you are <u>paying for.</u>
<span>C.
Fixed Costs. Fixed costs are incurred regardless of the number of units of a
product are produced or sold on a given period. Fixed costs are expenses
incurred and remain unchanged within a relevant period. These costs are fixed
in relation to the quantity of production for a certain period.</span>
