Hey...Im pretty sure its D ;p i hope i helped
Answer:
Only statement 2 is correct as the likely range of returns of security A would be higher as it has a higher standard deviation which means that its returns deviate more from the mean than security B, which implies that the range of returns of security A is likely to be higher than the range of return on security B.
Statement 1 is wrong because a security has higher risk premium when it has a higher Beta, which means that when the standard deviation is linked to the market returns than it may have a higher risk premium, but just on the basis of standard deviation we can not make that decision.
Statement 3 is wrong because we do not know the risk premiums of both the stocks so we cannot calculate the sharpe ratio as is calculated by dividing the excess returns by the standard deviations of stocks.
Explanation:
Answer: Option (B)
Explanation:
There are four main functions of a management involved in the Results Only Work Environment program. These are as follow: leading, planning, controlling and organizing. These functions tend to play a vital role in the establishment of an organization, so as they can achieve their objectives and goals. Therefore, we can state that financing is not one of the main functions of a management.
Answer:
With the large increase in financial market uncertainty, the mix between internal financing and external financing for new investment projects will tether towards internal sources of funding.
Explanation:
This means that the larger proportion of finance for new investment projects must come from internal sources rather than external sources. The companies will, therefore, experience much more pressure to generate and retain sufficient profits than it would have experienced otherwise. While this looks like the best way to go, the possibility of success depends on the chunk of the internally-generated funds that the companies already have.
Answer:
more
less
Explanation:
Inferior goods are goods whose demand falls when income rises and increases when income falls.
When the price of beer changes, there are two effects that determine the quantity demanded. They are :
1. the substitution effect
2. the income effect
The substitution effect looks at the change in price of a good relative to other goods. When the price of beer decreases, it becomes cheaper relative to other goods. Thus, the demand for it increases.
The income effect looks at how a change in price affects real disposable income. When price of beer reduces, disposable income increases. Because beer is an inferior good, it would lead to a decrease in the demand for beer