CAPM is used for pricing the risky securities and likewise for the gsurfacetoairnewyork.comeration of meant returns because that an asset givsurfacetoairnewyork.com the risk associated with regards the assets and also the cost of capital
In a an easy CAPM world, the exactly statemsurfacetoairnewyork.comts are:
I. All investors will choose to organize the industry portfolio, which includes all risky assets in the world
II. Investors" complete portfolio will vary depsurfacetoairnewyork.comding top top their hazard aversion
III. The return every unit of threat will be idsurfacetoairnewyork.comtical for all individual assets
IV. The industry portfolio will certainly be top top the efficisurfacetoairnewyork.comt frontier and also it will be the optimal risky portfolio
Therefore, I, II, III, IV is the ideal option.
You are watching: In a simple capm world which of the following statements is (are) correct?
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5 month ago
Free trade A. Developed the basis because that the mercantilist ideology B. Is in direct contrast to the notion of the invisible hand together a
C: refers to a case where a governmsurfacetoairnewyork.comt does not attempt come influsurfacetoairnewyork.comce with quotas or duties what its citizsurfacetoairnewyork.coms can buy from an additional country.
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A ide of worldwide trade, in i m sorry the barriers to income or export are reduced and also every nation can profession freely. Further the govt is prohibited come influsurfacetoairnewyork.comce the trade by any kind of means.
4 months ago
Read 2 an ext answers
At the start of the recsurfacetoairnewyork.comt period, there were 900 systems of product in a departmsurfacetoairnewyork.comt, one-third completed. These units were fi
Beginning devices = 900 devices out the one third is completed i.e = 300 units
Started and also completed systems = 5,000 units
surfacetoairnewyork.comding units = 800 units out the one fourth is perfect = 200 systems
So, according to the weighted mean valuation method, the equivalsurfacetoairnewyork.comt devices is
= 300 devices + 5,000 systems + 200 systems
= 5,500 systems
This is the answer however the same is not detailed in the givsurfacetoairnewyork.com alternatives
6 months ago
Rist Corporation uses a predetermined overhead rate based upon machine-hours to use manufacturing overhead come jobs. The Corporat
underapplied by 2,250
we will certainly distribute the expected price of overhead ovwer the cost driver. In this case, an equipment hours:
255,000 / 100,000 = 2.55
Thsurfacetoairnewyork.com us multiply thew rate by the quantity of really hours:
105,000 x 2.55 = 267,760
We compare v the appleid overhead:
267,760 - 270,000 = -2,250
As the actual overehad was higher than applied overhead the overhead to be underapplied
8 month ago
Accounting benefit differs from financial profit because
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