Answer: a. 11.5%
Explanation:
Fad followers are those investors who follow a trend when it emerges and as such their betas will be less than that of informed traders because the informed traders would have acted first.
Using the Capital Asset Pricing Model to calculate expected return.
Er = Rf + b( Rm - Rf)
Er = Expected return
Rf = Risk Free Rate
b = Beta
Rm = Market Return.
The Expected Return for the Informed Investors is,
= 4% + 1.4 ( 10% - 4%)
= 4% + 1.4 ( 6%)
= 12.4%
With the Fad followed expected to have a lower beta and therefore a lower expected return than the Informed Investors, the only suitable option is the 11.5%.
Answer:
Operating activities
Investing activities
Financing activities
Explanation:
In a cash flow statement, the activities of the organization are usually recognized in 3 parts namely; Operating activities, investing activities and financing activities.
The operating activities include elements such as net profit, non cash items, change in current assets and liabilities.
The investing activities include cash flows from the disposal and purchase of assets etc
The financing activities includes cash flows from the disposal and sale of shares etc.
The net cash flows from these activities is the netted off the cash balance at the beginning of the period to get the cash balance at the end of the period.
Hence the order of presentation of activities on the statement of cash flows is
Operating activities
Investing activities
Financing activities
Answer:
c. criterion deficiency
Explanation:
Based on the information provided within the question it can be said that in this scenario it seems that the performance management system suffers from Criterion deficiency. This term refers to a company failing to assess one or more very important aspects of the process of job performance appraisal for employees within the company. Such as is the case in this scenario as the company is only looking at the sales revenue and completely ignoring all of the other important factors.
Answer:
Kate is most likely to Provide a fast response to the customer using customer care software.
Explanation:
Customer Service Executives job is to handle phone, internet etc, interactions with customers. They manage client claims, complaints and process customer orders.
She received a complaint from Mike(who is a customer) about an unnecessary deduction of $10 from his phone credit. If Kate is going to follow her job protocol, she need to provide fast, accurate and precise response to Mike(the customer) using the company customer care software.
Using the software and her knowledge of customer service she should be able to offer a professional approach in answering mike and provide information about the deduction.
Solution :
In the context, it is given that foreman in a construction company is responsible for the workers who are unskilled labors.
1. The segregation of the duties which involves the separation of the main functions and have them to conducted by the different workers. But here in this case, the approval of the attendance of the employees and the distribution of the checks to the worker are the important activities that are being conducted by a single employee.
2. This may result into frauds to the company. If the segregation of the duties is not implemented, then the company is at risk. This is because a single employee does the work for the approval of the attendance of the workers and distributing the checks to them for their work. So this can result in a fraud if the foreman wants to do fraud. But distributing the work among two employee will reduce the risk of fraud as one employee many not be willing to do fraud.
