Answer:
Reward to risk ratio = (Expected return - Risk free rate) / Beta
Reward to risk ratio of Y = ( 0.145 - 0.056) / 1.2
Reward to risk ratio of Y = 0.089 / 1.2
Reward to risk ratio of Y = 0.0741666
Reward to risk ratio of Y = 7.42%
Reward to risk ratio of Z = (0.093 - 0.056) / 0.7
Reward to risk ratio of Z = 0.037 / 0.7
Reward to risk ratio of Z = 0.0528571
Reward to risk ratio of Z = 5.29%
Security market line (SML) reward-to-risk ratio is the market risk premium itself which is 6.6%.
Stock Y has a reward-to-risk ratio that is higher than the market risk premium, it is currently under-valued in the market. Similarly, since stock Z has a reward-to-risk ratio that is lower than the market risk premium, it is currently over-valued in the market.
Answer:
The project never pays back
Explanation:
The break even point in cash is a point where the minimum revenue amount of the firm arise from sales that are needed to generate the business by having the positive cash flows
hence, the break even point in cash represents that the project will never pays back the invested amount
Therefore all the other options are wrong
Answer:
d. 0; unrelated.
Explanation:
Cross elasticity of demand is the degree of responsiveness of demand for a particular product to a change in the price of another product.
A change in price of a product will lead to a change in demand for another product if the two goods are either goods of close substitutes or if they are complements. If two goods are not related, the change in price of one will not have any impact on the demand for the other good.
In this question, the cross elasticity is zero because biro and pencil are not related.
Answer:
Trend analysis is analysisof dollar changes and percentage changes over several years.
Explanation:
A trend analysis is a method of analysis that allows traders to predict what will happen with a stock in the future.
Answer:
C. II and III
Explanation:
These are the options for the question
I Filing
II Coordination
III Qualification
A. I only
B. II only
C. II and III
D. I, II, III
The Securities and Exchange Commission (SEC) can be regarded as an oversight agency of U.S. government, which responsible for regulation of securities markets as well as protection of investors. civil actions can be taken by SEC against lawbreakers, they aworks hand in hand along with Justice Department on criminal cases. For a company to register under them , there must be Coordination and Qualification. It should be noted that company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a State by Coordination and Qualification
