in markets with imperfect information: question 10 options: buyers and sellers will use resources to acquire information before making decisions buyers will use resources to acquire information before making a decision, but sellers do not need to acquire additional information before making a decision sellers will use resources to acquire information before making a decision, but buyers do not need to acquire additional information before making a decision neither buyers nor sellers will be able to acquire information in order to make decisions
Answers
Markets can handle imperfect information in a variety of ways.In markets for goods, customers who have limited knowledge of the products might rely on money-back guarantees.
How do markets respond to imperfect data? Markets can handle incomplete information in a variety of ways.Buyers in markets for goods may rely on money-back guarantees, warranties, service contracts, and reputation when they have incomplete knowledge about the products they are purchasing.Uncertainty or ignorance can also contribute to inaccurate information.Information becomes another need or demand if the market participant is aware that better information is available.Information may be purchased through a business deal and turn into a commodity that costs the buyer or seller money.If the buyer or seller lacks sufficient knowledge, they will make decisions based on insufficient data and produce inefficient results, which will result in market failure.To learn more about imperfect information refer
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Related Questions
Ethiopia's incomes and expenditures are as follows (in billion bire) in 2009
Wages
at what approach 100
Social security contributions
7
Interest income
5
Personal taxes
20
Consumption expenditure by households
60
Government purchases of goods and services
150
50
Transfer payments
100
Corporate profit
30
Investment expenditures by business
20
Corporate Income taxes
50
Indirect business taxes
Undistributed corporate profit
90
Consumption of fixed capital( depreciation)
40
Non income charges
65
Expenditures by foreigners
25
Net foreign factor income earned domestically
25
a. Using expenditure approach, what is GDP?
Answers
The GDP of Ethiopia using the expenditure approach in 2009 was 205 billion bire.
What is Ethiopia's GDP?By adding up all of the expenditures on finished goods and services produced domestically, we may compute the GDP using the expenditure method. The following formula is used to determine GDP when utilizing the spending method:
GDP = C + I + G + (X - M)
where:
C = Consumption expenditure by households
I = Investment expenditures by business
G = Government purchases of goods and services
X = Expenditures by foreigners on domestically produced goods and services
M = Expenditures by domestic residents on foreign-produced goods and services
Using the given values for Ethiopia's incomes and expenditures in 2009, we can further input the values to calculate the GDP as;
GDP = C + I + G + (X - M)
= 60 + 20 + 150 + (25 - 25)
= 205 billion bire
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You are the proud owner of the Sunnyside Up Cafe. Your 15-year-old business has built up a huge local following who love to stop by for breakfast served all day, and now you'd like to create an online community of equally loyal fans. Which platform is your best option for creating a digital forum where your followers can interact with you and each other
Answers
The platform which is your best option for creating a digital forum where your followers can interact with you and each other is:
A) Social networking siteWhat is a Social networking site?This refers to the use of social media networks to share content with people and also for interactive purposes.
With this in mind, we can see that as a proud owner of Sunnyside Up Cafe, there is a need for interaction with loyal customers which has been built for 15 years, so a social networking site would be best for this.
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Ali is the manager of a successful company. He has many employees under his command. One of his employees in the finance department made a huge mistake which cost the company a lot of money. His name is Saleh. Ali chooses to handle that situation by offending Saleh and yelling at him in front of all his colleagues as a .warning, but he does not fire him
Abeer is a manager in another successful company. She had an employee who made the same mistake. Her name is Sara, but Abeer did not handle the situation as Ali did. Instead, she decided not to yell at Sara for making that mistake and chose to wait until Sara's work .contract finished and did not renew it again
Do you think Ali's decision is legal? And Abeer's ?decision is ethical? And why If you were a manager and faced the same ?problem, what would you do?and why
Answers
The fundamental problem with ethical quandary is that it does not have clear-cut answer that complies with ethical standards. People have encountered problems throughout human history, and philosophers have sought to address them.
What is ethics?To "systematise, defend, and suggest notions of good and wrong action," "ethics" or "moral philosophy," a branch of philosophy, is the goal. The philosophical field of axiology encompasses the fields of ethics and aesthetics, both of which are concerned with questions of worth. Assuming that no one has any moral knowledge, moral scepticism, also referred to as moral scepticism, is a group of metaethical ideas. Many moral sceptics also offer the more forceful, modal argument that moral knowledge is impossibly unattainable. Moral scepticism, which denies the existence of knowable and objective moral truths, is particularly opposed to moral realism. The ontology of ethics is concerned with value-bearing elements, i.e., the categories of objects or entities that are addressed in ethical claims.
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What are the steps to strategic management?
Answers
Answer:
The process of strategic management includes goal setting, analysis, strategy formation, strategy implementation, and strategy monitoring. Let's take a look at how each of these steps ties into the overall strategic management process. The first part of strategic management is to plan and set your goals.Nov
Complete the journal entries for the following financing transactions.
a. A farmer deposits $350 from a garage sale of personal items into the farm checking account.
b. A farmer pays $100 for groceries with the farm checking account utilities of $65 for the farmer's house is paid with a check from the farm checking account.
c. A farmer culls his cow herd and sells the cows for $3,000 A farmer builds a shed for $7,000
Answers
Answer:
The answer is
Explanation:
The answer is ___, because
Diversity in the corporate world is business strategy?
Answers
Many unethical behaviors lead to the passage of legislation that makes those
behaviors legal.
TRUE OR FALSE
Answers
These unethical behavior examples help identify what is not considered These are just some of the many different examples of unethical behavior that could occur. Double standard which makes it unethical and causes a black eye to law .In verse 14 it says Truth has fallen in the public squares (KJ says streets. So true
Hope this helps have a great day :)
Lecture Questions
Question 1
The Baker Company manufactures a product in a single process. The following information is
available:
Input material 5,000 kilos valued at $18,000
Material added $4,000
Direct labour cost incurred $14,000
Manufacturing overhead incurred $20,500
Normal losses 10% of input
Scrap value of losses $5.00 per unit
Units completed and transferred out 4,300 units
i) Calculate the cost per completed unit
ii) What is the value of the units completed and transferred to finished goods?
iii) What is the value of the unexpected losses?
iv) What is the manufacturer’s true loss?
v) Prepare the journal entries necessary to record the assignment of direct materials and
direct labour and the allocation of manufacturing overhead to the process. Also, give
the journal entries for the transfer of units completed to Finished Goods Inventory.
Answers
The following are the questions' answers:
$12.56 is the price per finished product.$54,008 is the total cost of finished and transferred units.Losses at scrap value equal $1,000.The real loss to the manufacturer is $5,280.What precisely are anticipated and unanticipated losses?The amount a bank anticipates losing when offering credit to its customers on average over a predetermined time period is known as the expected loss. Unexpected loss is the term used to describe how unpredictable credit losses are in comparison to their forecasted loss. After estimating its expected loss, a bank sets up credit reserves.
i) Calculate the cost per completed unit:
To calculate the cost per finished unit, we must first calculate the total cost of production and divide it by the number of finished units.
Total cost of production = Input material cost + Material added + Direct labour cost + manufacturing costs
= $18,000 + $4,000 + $14,000 + $20,500
= $56,500
Normal loss = 10% of input = 0.10 * 5,000 kilos = 500 kilos
Actual completed units = Total input units - Normal loss units = 5,000 - 500 = 4,500 kilos
Cost per completed unit = Total production expense / actual finished products
= $56,500 / 4,500
= $12.56
ii)
Value of finished and transferred units = Total number of finished and transferred units X Price per finished item
= 4,300 * $12.56
= $54,008
iii)
Given that the real number of finished units is 4,500 and the typical loss is 10% of input, the actual loss is 200 kg. (5,000 input units - 4,300 completed and transferred out - 500 normal loss units).
Scrap value of losses = 200 units X $5.00 per unit
= $1,000
iv)
real loss to the manufacturer = (Normal losses X Cost per completed (unit)) - Scrap value of unexpected losses
= (500 units * $12.56) - $1,000
= $6,280 - $1,000
= $5,280
v)
Choosing a direct material:
Work in Process Inventory- (dr.) $22,000
Raw Materials Inventory $22,000
Providing direct labor:
Work in Process Inventory- (dr.) $14,000
Wages Payable $14,000
Cost of manufacturing overhead distribution:
Work in Process Inventory- (dr.) $20,500
Manufacturing Overhead $20,500
Transfer of finished units to the Inventory of Finished Goods:
Finished Goods Inventory- (dr.) $54,008
Work in Process Inventory $54,008
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Some companies do not act responsibly in the marketplace, especially when it comes to fair competition. Fair competition between businesses is necessary for the marketplace to operate effectively. The market economy relies chiefly on market forces to allocate goods, services, and other resources, and to determine prices. some companies they use unethical tactics to eliminate competition.
1.Explain three main unethical practices of businesses that can affect consumers.
2. Highlight the main two Responsibilities towards customers.
Answers
Answer:
A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. There may be some government intervention or central planning, but usually this term refers to an economy that is more market oriented in general.
Real versus nominal GDP
Consider a simple economy that produces two goods: beers and donuts. The following table shows the prices in quantities of the kids over a three year.
Answers
Real GDP is not impacted by price fluctuations, while nominal GDP is. The reason for this is that real GDP is calculated using the base yr price, which is constant.
What precisely does GDP mean?One of the most widely used terms is "GDP" (gross domestic product). It is regularly cited in publications including newspapers, television news programmes, government documents, reserve bank reports, and business reports. These days, it is commonly used as a gauge of the health of the both national and global economies.
What is the meaning of GDP? How is it calculated?GDP is the total of all private consumption, government spending, government investment, and gross domestic output (exports – imports). Usually, the country's national statistical office uses the international standard to compute GDP.
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Sophie’s Tobacco Shop has total assets of $98.8 million. Fifty percent of these assets are financed with debt of which $30.6 million is current liabilities. The firm has no preferred stock but the balance in common stock and paid-in surplus is $26.4 million.
What is the balance for long-term debt and retained earnings on Sophie’s Tobacco Shop’s balance sheet?
Answers
Answer:
The total debt on the balance sheet is $98.8 million x 50% = $49.4 million.
Explanation:
The current portion of debt is given as $30.6 million, so the long-term debt is $49.4 million – $30.6 million = $18.8 million.
The balance of common stock and paid-in surplus is $26.4 million, which means the retained earnings balance would be: $98.8 million – $30.6 million – $18.8 million – $26.4 million = $22.0 million.
Therefore, the balance for long-term debt on Sophie’s Tobacco Shop’s balance sheet is $18.8 million, and the balance for retained earnings is $22.0 million.
why might a conflict of objectives exist between the management and workforce of a company
Answers
because the management might not give income to the workers as agreed and as in time and also conflicts will raise if workers are being treated unfairly
The results of inspection of DNA samples taken over the past 10 days are given below. Sample size is 100.
Answers
The upper and lower 3 - sigma chart limits would be 18.32 and 0 respectively.
How to find the upper and lower chart limits ?The 3-sigma control chart is a type of control chart that uses a mean line and control limits that are three standard deviations above and below the mean.
The mean is :
= (7 + 9 + 9 + 11 + 7 + 8 + 1 + 10 + 13 + 2) / 10 = 77 / 10
= 7.7
The standard deviation (σ ) is :
= √ ([0.49 + 1.69 + 1.69 + 10.89 + 0.49 + 0.09 + 44.89 + 5.29 + 28.09 + 32.49] / 10)
= √([125.1] / 10)
= √[12.51]
= 3.54
Upper control limit (UCL) = mean + 3σ = 7.7 + 3 * 3.54
= 18.32
Lower control limit (LCL) = mean - 3σ = 7.7 - 3 * 3.54
= -2.92
The lower control limit cannot be negative because we cannot have a negative number of defective items. So, in practice, set the lower control limit at zero.
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Choose the option that best matches the description given. The social worker is responsible for helping clients_______________.
A. restore functioning ability
B. use more effective child-care techniques
C. mend fences with family members and friends
Answers
Answer: either a,b or c but probably c
Explanation:
For unions to grow in the future, they will have to
Multiple Choice
continue to focus on blue-collar and trade workers.
focus on organizing older workers rather than younger workers.
adapt to a more culturally diverse, white-collar workforce.
take up the fight against continuous improvement and employee involvement.
Answers
For unions to grow in the future, they will have to adapt to a more culturally diverse, white-collar workforce.
What is workforce?The term "workforce" can as ell be regarded as the labor force" which can be described as the group of people who are either employed or unemployed they can be seen as the people in certain organization or sector, but it can also refer to a specific geographic area like a city, state, or nation.
It should be noted that the entire workforce that a corporation has do engage on a project, however the entire number of potential employees The workforce in the nation is expanding quickly.
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You have now become more versed in the different types of approach the government has at its disposal to combat market inefficiencies.
You're going to be placed in the shoes of a government employee that has been tasked to propose a policy for a specific problem.
You will need:
To theoretically backup your policy (explain why the problem fits the specific theory you want to use)
To explain in laymen terms (simple) how it will work and why it will work
Is the policy you propose enforceable (and realistically doable - in your opinion)
You do not need to go over board - I am not expecting calculation but you can use numbers if that helps.
Situation:
The city of HRM is finding that too many (disposable) mask (used to protect against covid) are finding their way in landfills and on the street.
Help remedy the problem. (the waste is a problem to which your called to address - but do not neglects citizen safety)
2 page max - double space
Answers
In summary, the proposed policy seeks to address the problem of disposable masks in HRM through a combination of economic and regulatory measures. The policy is based on the concept of Extended Producer Responsibility and aims to incentivize manufacturers to produce more sustainable masks while mandating their participation in a take-back program to ensure the proper treatment and disposal of the masks. The proposed policy is enforceable and provides a clear framework for manufacturers to follow, encouraging them to take responsibility for the environmental impact of their products.
What is government employee policy?Generally, Proposal to Address the Problem of Disposable Masks in HRM
Introduction:
The COVID-19 pandemic has increased the demand for disposable masks for public health purposes. However, this has led to a growing concern about the impact of the disposal of these masks on the environment, particularly with their presence in landfills and on the streets. This proposal seeks to address this problem by implementing a policy that uses a combination of economic and regulatory measures.
Theoretical Backup:
The theoretical framework behind this proposal is based on the concept of Extended Producer Responsibility (EPR). EPR is a policy approach that holds manufacturers responsible for the environmental impact of their products throughout the entire lifecycle. By making the manufacturers responsible, it incentivizes them to reduce waste and improve the recyclability of their products. This approach has been used successfully in many countries to address waste management issues.
Explanation of Policy:
The proposed policy involves the implementation of a two-pronged approach. The first approach is to encourage manufacturers to produce more sustainable masks by offering tax incentives or subsidies for environmentally-friendly materials and recycling efforts. The second approach is to mandate manufacturers to participate in a take-back program, which would ensure that the masks are collected, properly treated, and disposed of in an environmentally sustainable way.
The first approach incentivizes manufacturers to take responsibility for the environmental impact of their products by rewarding them for producing more sustainable masks. These incentives could include reduced taxes or subsidies, which would encourage manufacturers to invest in more environmentally friendly materials and recycling processes. This would help to reduce the amount of waste generated by disposable masks and encourage the development of more sustainable products.
The second approach would mandate manufacturers to participate in a take-back program for their disposable masks. This program would ensure that masks are collected, treated, and disposed of in an environmentally sustainable manner. The program would be regulated by the government and enforced by imposing penalties on manufacturers that do not comply with the program. This would encourage manufacturers to take responsibility for the environmental impact of their products and promote a sustainable waste management system.
Enforceability:
The proposed policy is enforceable, as it can be monitored and regulated by the government. The incentives and penalties would provide a clear framework for manufacturers to follow and provide a mechanism for enforcement. The implementation of the take-back program would require the participation of the government and private waste management companies. The program could be enforced by issuing fines and penalties for non-compliance, which would encourage manufacturers to participate.
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Revise the following sentences to avoid confusing jargon, slang, and wordings.
1. If you refer back to our five year plan, you will see that there are provisions for preventing blowing the budget.
Answers
The revised sentence is "If you review our five-year plan, you will notice that there are measures in place to prevent exceeding the budget.
Why is revision of sentences important?Sentence revision is important because it ensures clarity and effective communication.
By avoiding confusing jargon, slang, and wordings, revised sentences are easier to understand by a wider audience.
Clear and concise language helps convey ideas accurately and reduces the risk of misinterpretation or confusion.
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Taxes are costly to market participants because they
a. transfer resources from market participants to the government.
b. alter incentives.
c. distort market outcomes.
O d. All of the above are correct.
Answers
Considering the available options, Taxes are costly to market participants because All of the above is correct.
This is evident in that taxes are costly to market participants because they "transfer resources from market participants to the government."
The resources here are capital resources which come in the form of money.
Also, taxes are costly to market participants as it alters the incentives to buy or conduct business.
Again, taxes are costly to market participants because they alter or affect the market outcomes.
Hence, in this case, it is concluded that the correct answer is option D. "All of the above is correct."
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Multiple Choice Question
What contribution did the early Venetians make to the practice of management?
O Describing the importance of leadership in The Art of War
O Considering the role of specialization in a manufacturing setting
O Standardizing production with assembly lines and inventory controls
O Being the first to recognize management as a scientific practice
Answers
The early Venetians make Standardizing production with assembly lines and inventory controls the practice of management.
Venetian traders were influential financiers in Europe. The city was also the birthplace of awesome European explorers, which includes Marco Polo, as well as Baroque composers inclusive of Antonio Vivaldi and Benedetto Marcello, and well-known painters which include the Renaissance master Titian.
The Republic of Venice or the Venetian Republic, historically referred to as Los Angeles Serenissima changed into a sovereign nation and maritime
Venetian is a separate language from Italian, with many neighborhood varieties. Its precise location in the Romance language circle of relatives remains extremely debatable.
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On January 1, 2013, Jones Inc. issued a $100,000 face value bond for proceeds of $97,654. On June 30, 2013, Jones sent checks to the bondholders for the first coupon payment on the bond. Which of the following items would be increased by the coupon payment transaction?
a. Interest Expenseb. Bonds Payablec. Cash from Operating Activitiesd. Cash from Financing Activitiese. Cash from Investing Activities
Answers
Answer:
a. Interest Expense
Explanation:
Only the Interest Expense would be increased by the coupon payment transaction.
Coupon payment includes interest payment and repayment of the Principle or Capital amount.
The entry for coupon payment is :'
Debit : Interest expense
Debit : Bond Payable
Credit : Cash
While the Cash- Asset and the Bond Payable- Liability are decreasing, only the Interest expense is increasing.
The purpose of the stock market is to make?
Answers
Answer: The stock market helps companies raise money to fund operations by selling shares of stock, and it creates and sustains wealth for individual investors. Companies raise money on the stock market by selling ownership stakes to investors. These equity stakes are known as shares of stock.
How would I put the reason I left my job simply and professionally if this was the reason: I left my job due to my drivers ed schedule interfering with my work schedule, I was also not able to get to and from work since my dad couldn't take me there all the time.
Answers
Match the NAEYC Program Standard on the left with its description on the right.
Answers
Matching the NAEYC Program Standard on the left with its description on the right is as follows:
NAEYC Program Standard DescriptionRelationships g) Promotes positive interactions
Curriculum e) The curriculum utilized
Teaching d) Teaching methods
Assessment of Child Progress f) Formal and informal assessments
Health h) Supports health and nutrition
Staff Competencies, Preparation,
and Support i) Highly qualified teaching staff
Families b) Positive relationships with families
Community Relationships c) Strong community relationships
Physical Environment a) Safe environment
Leadership and Management j) Strong leadership, procedures, and
What are the NAEYC Program Standards?The National Association for the Education of Young Children (NAEYC) has 10 program standards to facilitate families in making the right choice with regard to their children's childcare center, preschool, or kindergarten selection and support.
The NAEYC is an umbrella organization representing teachers, para-educators, center directors, trainers, college educators, families of young children, policymakers, and early childhood education advocates.
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PLEASE HELP!!
Which of the following is an advantage of using cash over a credit card?
A. It is easier to keep a record of how you spend your money.
B. It is easier to control the amount you spend.
C. It's easier to buy things online.
D. It is easier to rent a car.
Answers
Answer:
B. It is easier to control the amount you spend.
Explanation: hope this helps!
The major advantage of using cash over a credit card is it is easier to control the amount you spend.
What is cash?Cash refers to the legal currency used for exchanging goods, services, and debt.
Using cash eliminates the possibility of overspending as you cannot spend more cash than you have. So, the advantage of using cash over a credit card is it is easier to control the amount you spend.
Therefore, B is the correct option.
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why is it important for Holmes not to be the only person interviewing job candidates?
Answers
Answer:
Sherlok asked him wasssupppp and got job.
Explanation:
Can you think of any case in which some decisions would be valuable as a matter of social policy but bad as a matter of personal ethics? Expound.
Answers
Yes, one example of decision that could be valuable as a matter of social policy but bad as a matter of personal ethics is the use of eminent domain to acquire private property for public use.
What are ethics?Ethics refer to a set of principles or values that guide behavior and decision-making, typically in a professional or societal context. Ethics can be based on various sources such as religion, philosophy, culture, or law. Ethical considerations may include concepts such as fairness, justice, honesty, respect for others, and responsibility. It is important to recognize that ethical principles may vary across different cultures, professions, or situations, and may evolve over time. Ethical behavior often involves balancing competing interests and making difficult choices based on sound judgment and critical thinking. Adhering to ethical standards can promote trust, integrity, and social responsibility, and can help individuals and organizations avoid legal or reputational risks.
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A client with a high risk tolerance anticipates that the market will remain flat for the next 3 months. Which position would produce the maximum profit for this client
Answers
Answer: A. Short Straddle
Explanation:
A Short Straddle is a strategy used in the derivative market of Options where the investor sells both a Call Option and a Put Option on the same stock with the same expiration date.
The logic behind this is that they do not expect the underlying stock to change significantly in price for the period of either the Call nor the Put. The goal therefore is to make profit from the buying fees/credit of both the Put and the Call whilst anticipating that neither of them.will be redeemed so the investor will keep both the stock and the buying fees/credit.
What’s the maximum amount of time homstyle Mac and cheese
Answers
The maximum amount of time required to prepare homemade-style mac and cheese typically ranges from 30 to 45 minutes. This includes the time needed for boiling the pasta, making the cheese sauce, and baking or broiling the dish for a crispy topping.
The exact duration may vary depending on the recipe and individual cooking preferences. To begin, the pasta is cooked in boiling water for about 8 to 12 minutes until it reaches the desired tenderness.
Meanwhile, a cheese sauce is prepared by melting butter, adding flour to create a roux, and gradually incorporating milk and shredded cheese until a creamy consistency is achieved. This process usually takes around 10 to 15 minutes.
Once the pasta is drained and the cheese sauce is ready, they are combined and optionally transferred to a baking dish. The mac and cheese is then baked or broiled for an additional 10 to 15 minutes, resulting in a golden and bubbly top.
In summary, while homemade-style mac and cheese can be made in as little as 30 minutes, it typically requires around 30 to 45 minutes from start to finish, depending on the recipe and desired outcome.
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QUESTION TWO HEEKS Associates Co. Ltd is considering investing in one of two proposed short-term portfolios of four short-term financial investments. The correlation between the returns of the individual investments is believed to be negligible in both options proposed. The market return is estimated to be 15%, and the risk-free rate 5%. Portfolio 1 Investment A B C D Portfolio 2 Investment A B C D Amounts invested (TZS) 10,000,000 40,000,000 30,000,000 20,000,000 Amounts invested (TZS) 20,000,000 40,000,000 20,000,000 20,000,000 Expected Total return risk 20% 8 22% 24% 26% Expected return 18% 20% 22% 16% 10 11 9 Total risk 7 9 12 13 Beta 0.7 1.2 1.3 1.4 Beta 0.8 1.1 1.2 1.4 Required: a) Calculate the risk and return of the two portfolios using the principles of both portfolio theory and the CAPM. b) Which portfolio appears to be more efficient?
Answers
Portfolio 1: Expected Return 1: 19.6% , Total Risk (σ1): 5.5%
CAPM Expected Return 1: 51%, CAPM Total Risk (σ1): 49.5
Portfolio 2: Expected Return 2: 19.2%, Total Risk (σ2): 4.7%
CAPM Expected Return (E(R2)): 50%, CAPM Total Risk (σ2): 48.1
a) Portfolio Risk and Return Calculation:
Using Portfolio Theory:
For Portfolio 1: Expected Return 1 = (Weight A * Return A) + (Weight B * Return B) + (Weight C * Return C) + (Weight D * Return D) Expected Return (E(R1)) = (0.1 * 18%) + (0.4 * 20%) + (0.3 * 22%) + (0.2 * 16%)
= 1.8% + 8% + 6.6% + 3.2%
Expected Return 1 = 19.6%
Total Risk (σ1) = √[(Weight A^2 * Risk A^2) + (Weight B^2 * Risk B^2) + (Weight C^2 * Risk C^2) + (Weight D^2 * Risk D^2)] Total Risk (σ1) = √[(0.1^2 * 7^2) + (0.4^2 * 9^2) + (0.3^2 * 12^2) + (0.2^2 * 13^2)]
= √[0.49 + 12.96 + 10.08 + 6.76] Total Risk (σ1) = √30.29
Total Risk (σ1) = 5.5%
For Portfolio 2: Expected Return 2 = (0.2 * 18%) + (0.4 * 20%) + (0.2 * 22%) + (0.2 * 16%)
= 3.6% + 8% + 4.4% + 3.2%
Expected Return 2 = 19.2%
Total Risk (σ2) = √[(0.2^2 * 7^2) + (0.4^2 * 9^2) + (0.2^2 * 12^2) + (0.2^2 * 13^2)]
= √[0.98 + 12.96 + 2.88 + 5.32] = √22.14
Total Risk (σ2) = 4.7%
Using CAPM:
For Portfolio 1: Expected Return 1 = Risk-Free Rate + (Beta A * Market Risk Premium) + (Beta B * Market Risk Premium) + (Beta C * Market Risk Premium) + (Beta D * Market Risk Premium) Expected Return (E(R1))
= 5% + (0.7 * (15% - 5%)) + (1.2 * (15% - 5%)) + (1.3 * (15% - 5%)) + (1.4 * (15% - 5%))
= 5% + (0.7 * 10%) + (1.2 * 10%) + (1.3 * 10%) + (1.4 * 10%)
= 5% + 7% + 12% + 13% + 14%
Expected Return 1 = 51%
Total Risk (σ1) = Beta-Weighted Standard Deviation = (Beta A * Risk A) + (Beta B * Risk B) + (Beta C * Risk C) + (Beta D * Risk D)
= (0.7 * 7) + (1.2 * 9) + (1.3 * 12) + (1.4 * 13)
= 4.9 + 10.8 + 15.6 + 18.2
Total Risk (σ1) = 49.5
For Portfolio 2: Expected Return 2 = 5% + (0.8 * (15% - 5%)) + (1.1 * (15% - 5%)) + (1.2 * (15% - 5%)) + (1.4 * (15% - 5%))
= 5% + (0.8 * 10%) + (1.1 * 10%) + (1.2 * 10%) + (1.4 * 10%)
= 5% + 8% + 11% + 12% + 14%
Expected Return 2 = 50%
Total Risk (σ2) = (0.8 * 7) + (1.1 * 9) + (1.2 * 12) + (1.4 * 13)
= 5.6 + 9.9 + 14.4 + 18.2
Total Risk (σ2) = 48.1
Based on these metrics, Portfolio 2 appears to be more efficient since it has a slightly lower total risk while still offering a high expected return.
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The below two statements are related to mindfulness
a. It is not obscure or exotic.
b. It is evidence-based.
TRUE
FALSE
Answers
It is true that mindfulness is evidence based and false that it is exotic.
What is mindfulness?Mindfulness. It's an easy term to understand. It implies that the mind is entirely focused on what is taking place, what you are doing, and the environment you are moving through. That might sound insignificant, but it annoys me that we frequently stray from the topic at hand. When our mind wanders, we get disconnected from our physical selves and quickly become preoccupied with compulsive thoughts about the past or worry about the future. And it stresses us out.
However, awareness is always present to bring us back to where we are, what we are doing, and how we are feeling, no matter how far we go. It's great to give mindfulness a go for a time if you want to understand what it is. You will discover tiny variances in the meaning in books, online, audio, and video since it's difficult to put into words.
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