What is the equation for the Security Market Line? Define each term. If an asset has a beta of 2.0, what type of return should it realize compared to the market portfolio?
What will be an ideal response?
Answer: The equation for the SML is E(ri) = rf + [E(rm) - rf] × βi, where: E(ri) is the expected return on an asset, rf is the risk-free rate, βi is beta the measure of nondiversifiable risk for asset i, E(rm) is the expected return for holding the market portfolio of risky assets, and [E(rm) - rf] is the market risk premium that an investor can expect to earn for holding the market portfolio. If an asset has a beta of 2.0, an investor can expect to receive twice the market risk premium in addition to the risk-free rate of return. A common misconception is that the investor can expect to receive twice the rate of return as the market portfolio, but only the risk premium is impacted by the level of risk.
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Most businesses have an operating cycle of less than one year
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1.In the workplace, stress is a reaction to environmental demands. 2.Dysfunction is a constant lack of interest and motivation to perform one’s job. 3.The Type A personality is characterized as fast-moving, hard-driving, time-conscious, competitive, impatient, and preoccupied with work. 4.Ergonomics is the management of personnel, equipment, and facilities in order to protect them. 5.Cybersecurity is the use of tools and processes to protect organizational computer systems and networks.
How can employee concerns about the job analysis process be addressed?
What will be an ideal response?
Cover Board Inc. is a company that designs and prints advertisements on coffee sleeves used on cups sold in coffee shops
To find clients to advertise on the coffee cup sleeves, the company sends a representative to other companies to explain them the benefits of advertising on these sleeves. In this case, which of the following promotional strategies is used by Cover Board Inc.? a. Mass communication b. Implicit communication c. Personal selling d. Sales promotion