Answer:
6.75%
Explanation:
Data provided in the question:
Beta of the stock = 1.12
Expected return = 10.8% = 0.108
Return of risk free asset = 2.7% = 0.027
Now,
Since it is equally invested in two assets
Therefore,
both will have equal weight =
= 0.5
Thus,
Expected return on a portfolio = ∑(Weight × Return)
= [ 0.5 × 10.8% ] + [ 0.5 × 2.7% ]
= 5.4% + 1.35%
= 6.75%
Answer:
The answer is 14.4%
Explanation:
Calculations as follows:
Total returns 1600*12*5=96,000
Plus the capital investment of 100,000
Total amount 100,000+96,000=196,000
196,000=100,000(1+r/100)∧5
196,000/100,000=(1+r/100)∧5
5√1.96=1+ r/100
5√1.96 -1= r/100
1.1440-1 = r/100
0.144= r/100
r = 14.4%
A rightward shift of the supply curve so that more is offered at each price is the cause of any improvement in overall production tech that permits more output to be produced with the same level of inputs causes
The rightward shift of the supply curve usually indicates an increase in an input.