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
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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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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
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Answer:

5,500 devices

Explanation:

Givsurfacetoairnewyork.com that

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

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This is the answer however the same is not detailed in the givsurfacetoairnewyork.com alternatives


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6 months ago

Rist Corporation uses a predetermined overhead rate based upon machine-hours to use manufacturing overhead come jobs. The Corporat
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underapplied by 2,250

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*

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255,000 / 100,000 = 2.55

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