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Kisachek [45]
1 year ago
13

Asset A has an expected return of 15% and a reward-to-variability ratio of .4. Asset B has an expected return of 20% and a rewar

d-to-variability ratio of .3. A risk-averse investor would prefer a portfolio using the risk-free asset and ______. Multiple Choice
asset B asset A
no risky asset
The answer cannot be determined from the data given.
Business
1 answer:
4vir4ik [10]1 year ago
8 0

Answer:

Correct option is B.

<u>Asset A</u>

Explanation:

Reward to variability ratio = return/σ

Asset A,σ = 15/0.4 = 37.5

Asset B,σ = 20/0.3 = 66.67

Since deviation(volatility) is lesser for asset A,a risk investor would prefer asset A.

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As companies shift from a product-centric focus to a customer-centric focus, a myth that almost all current customers are profit
Rina8888 [55]

Answer:

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5 0
2 years ago
What are differences between social contextual learning and guided competency development? Are both types of learning and associ
nikitadnepr [17]

Answer:Social contextual learning is an Informal learning, it is a peer-to-peer learning and it occurs spontaneously as it is needed.

Guided competency development are formal developments,they defined by the organization as beneficial skills for a wide variety of positions within the company, they are properly fashioned and planned,they do not occur spontaneously and are not driven by peer to peer Interaction.

PARTB

YES, BOTH TYPES OF LEARNING AND ASSOCIATED TRAINING METHODS ARE NECESSARY.

Explanation: Social contextual learning are informal learning approaches which occurs spontaneously as at when needed, this type of learning is usually driven by peer to peer interactions it is necessary and needed for proper social learning.

Guided competency development is a formal approach to development which is guided by the needs of the Organisation,they don't occurs spontaneously and are not peer to peer interaction, it is necessary.

4 0
2 years ago
Stock Y has a beta of 1.2 and an expected return of 12.1%. Stock Z had a beta of 0.8 and an expected return of 7.85%. The risk-f
levacccp [35]

Answer:

Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced

Explanation:

<em>To determine whether or not the stocks are correctly priced ,</em>

<em>we have to compare the r</em><em>equired return</em><em> and the </em><em>expected return on each of them.</em>

Required return = Rf +β (Rm-Rf)

Note that Rm-Rf  is also known as market risk premium

                                  <em>Stock Y                         Stock Z</em>

<em>Required return   </em>       2.4% + 1.2(7.2%)            2.4% + 0.8(7.2%)

                                  = 11%                                   = 8.2%

<em>Expected return</em>            <em>12.1%                           7.85%</em>

Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced

6 0
2 years ago
Suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound in 2015 and 240 million pounds for $3 per po
VARVARA [1.3K]

Answer: C) the demand for coffee beans has increased

Explanation:

The law of supply states that: "all things being equal" the higher the price the higher the quantity supplied and the lower the price, the lower the quantity supplied.

Coffee growers sold just 200 million pounds of coffee when the price was $2 per pound but they increased their supply of coffee to 240 million pounds when the price per pound is $3.

This is an evidence to show that suppliers supply more products when price increase in order for them to make more profits.

3 0
1 year ago
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $80,000 of income a year for 20 years,
ivolga24 [154]
Defined the answer multiplied $80,000 by 20, once you get that answer multiply that by 0 5.25, then whatever you get is the answer. You're welcome, tea sis, shook, can't relate, be smarter
7 0
2 years ago
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