Answer:
I believe the best answer would be A. $10,580
Explanation:
400 x 23.89 = $9,556. 400 x 50.34 = $20,136
$20,136 - $9,556 = $10,580
A.
They don't need child abuse!!
Answer:
The correct answer is letter "B": False.
Explanation:
The flow-down in management represents the activities executives perform when each individual department establishes their objectives and they are reported to the next level in the hierarchy department so the manager of that department approves or modifies it to align the overall organization's goals.
Setting the corporation's vision and mission is not part of this approach.
Answer:
a. The return predicted by CAPM for a portfolio with a beta of 1.4 is 11.88%
b. The alpha of portfolio A is -3.68%
Explanation:
The formula for computing the return by Capital Assets Pricing Method (CAPM) model.
Expected return = Risk Free rate + (Beta × Market Risk Premium)
where,
Market risk premium = market return - risk free rate
Now, putting the values in the above equation
a. Expected return = 0.06 + 1.4 × (0.102 - 0.06)
= 0.06 + 1.4 × 0.042
= 0.06 + 0.0588
= 0.1188
= 11.88 %
Thus, the return predicted by CAPM for a portfolio with a beta of 1.4 is 11.88%.
b. The alpha should be = Portfolio expected return - expected return
= 8.20 - 11.88 %
= -3.68%
Thus, the alpha of portfolio A is -3.68%