The main disadvantage of the command economy is that nothing stops the government from producing things people don't need. Therefore, the correct statement is Option A.
What do you know about command economy?An economic system wherein the approach of manufacturing is publicly owned and economic interest is managed via way of means of a government that assigns quantitative manufacturing needs and allots raw materials to productive enterprises can be referred to as a Command economy.
Therefore, The main disadvantage of the command economy is that nothing stops the government from producing things people don't need. the correct statement is Option A.
Learn more about command economy:
https://brainly.com/question/26262298
#SPJ1
"Mr. Bergh sent the firm's then top 60 managers six questions about the pros and cons of the business - and started interviewing each of them." Why would Mr. Bergh ask his managers questions about the pros and cons of the business? What type of information was he attempting to retrieve in his interview process? Do you feel that this is an effective way of communication from a leadership perspective?
Mr. Bergh asked his managers about the pros and cons of the business to gather valuable insights, encourage collaboration, and enhance organizational performance, making it an effective communication approach from a leadership perspective.
Mr. Bergh likely asked his managers questions about the pros and cons of the business to gain valuable insights and feedback from those who have a deep understanding of the organization's operations. By seeking input from the top 60 managers, he could gather a comprehensive perspective on the strengths and weaknesses of the business.
In his interview process, Mr. Bergh was likely attempting to retrieve information about various aspects of the business, such as identifying areas of improvement, understanding challenges faced by the managers, exploring potential opportunities, and gathering ideas for strategic decision-making.
By asking specific questions, he could assess the managers' knowledge, critical thinking, and problem-solving abilities. The goal would be to obtain actionable insights that could inform the company's future direction and enhance its performance.
From a leadership perspective, this approach can be highly effective. Engaging with managers and soliciting their opinions demonstrates a collaborative and inclusive leadership style.
It empowers managers by involving them in decision-making processes and signaling that their expertise and perspectives are valued. It also fosters a culture of open communication, encourages creativity, and enables the organization to tap into the collective intelligence of its top management.
However, the effectiveness of this approach depends on the receptiveness of the managers, the level of trust and psychological safety within the organization, and how the collected feedback is utilized.
It is essential for leaders to create an environment where managers feel comfortable expressing their views and ensure that the information gathered is acted upon or considered in decision-making processes. Regular and transparent communication should follow to close the feedback loop and demonstrate a commitment to continuous improvement.
In summary, asking managers about the pros and cons of the business and conducting interviews can be an effective way for a leader to gather valuable insights, foster collaboration, and enhance organizational performance when accompanied by a supportive leadership style and a commitment to act upon the feedback received.
For more question on organizational visit:
https://brainly.com/question/29641668
#SPJ8
FRY-9C, FRY-14M, FRY-14Q, FRY-2052a, FP&A, CRR
What are these terms exactly mean? How do they work in business? What each term do?
The terms mentioned above are used in economics and have to do with finance.
What are FRY-9C, FRY-14M, and FRY-14Q?In order to keep an eye on financial institutions in between on-site inspections, the FR Y-9C is the main analytical tool employed. The form, which is the most frequently requested and scrutinized report at the holding company level, contains more schedules than any other report in the FR Y-9 series.
The FR Y-14M report gathers monthly in-depth information on the loan portfolios of bank holding companies (BHCs), savings and loan holding companies (SLHCs), and intermediate holding companies (IHCs). Three loan- and portfolio-level collections, as well as one in-depth address matching collection, make up the report.
On a quarterly basis, the FR Y-14Q compiles comprehensive information on the various asset classes, capital components, and pre-provision net revenue (PPNR) categories of the bank holding companies (BHC), savings and loan holding companies (SLHCs), and intermediate holding companies (IHC).
Learn more about financial institution, from:
brainly.com/question/29641948
#SPJ9
In order to make a decision utilizing a decision tree, you must:___________.a. start at the most distant point in time and work backwards to Time 0.b. begin at Time 0 and work towards the most distant point in time.c. start at the top of the tree and work vertically downward to the very bottom.d. start at the middle of the tree and work both upwards and downwards simultaneously.e. concentrate only on the limbs with the highest probability of occurrence levels.
Answer:
In order to make a decision utilizing a decision tree, you must:___________
b. begin at Time 0 and work towards the most distant point in time.
Explanation:
Decision trees are built up by starting from the present with the overarching objective (goal) in mind. Then, one classifies the information along various branches and leaf nodes, with each branch representing the outcome of an alternative route or a question answered based on the likelihood of the event happening. Each leaf node represents a class label (decision taken after computing all attributes). This structure can be used to predict likely values of data attributes.
Merchandise inventory includes:__________
a. costs to purchase
b. costs to sell
c. shipping costs
d. costs to prepare for sale
e. cost of goods sold
Answer:
a. costs to purchase
c. shipping costs
d. costs to prepare for sale
Explanation:
Merchandise inventory is a commodity offered for sale. It is the cost of goods that is readily available at hand which is ready for sale From the options; the Merchandise inventory includes: costs to purchase, shipping costs and costs to prepare for sale.
The remaining options are addressed in the income statement.
Which action would a government most likely take to reduce its
unemployment rate?
A. Increase spending to create government jobs
B. Cut off loans to businesses in order to reduce the money supply
C. Increase taxes on businesses that operate outside the country
D. Cut taxes on businesses that operate with very few workers
Option (a), The action that a government would most likely take to lower its unemployment rate is to increase expenditure to generate government jobs.
What would happen to the unemployment rate if government spending increased?Fiscal policy may lower unemployment by accelerating economic growth and total demand. The government will need to implement a broad budgetary policy, which calls for decreasing taxes and increasing general government spending.
Which government initiative has the most chance of reducing cyclical unemployment?To lower cyclical unemployment, policymakers should focus on raising output, which is best achieved by increasing demand. A fiscal strategy that is more expansive aims to increase government spending and decrease taxes in order to increase aggregate demand and economic growth.
Learn more about Fiscal policy: https://brainly.com/question/27506430
#SPJ1
Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2019:
Home acquisition debt interest $ 15,000
Credit card interest 5,000
Home equity loan interest (used for home improvement) 6,500
Investment interest expense 10,000
Required: With 2019 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000.
Answer:
The Investment Interest (limited to Investment income) = $2,000
Allowance deduction for Interest
Investment interest $2,000
Home acquisition debt interest $15,000
Home equity loan interest $6,500
$23,500 - Before phase out limits
5 pose food risk or hazard
Answer:
brainliest plzzzzzz
Explanation:
1. Poultry
If not handled properly, raw and undercooked poultry (i.e. chicken and duck) have an extremely high contamination risk. The most common risks for these types of foods are salmonella and campylobacter bacteria. These bacteria are often present in the raw meat until cooking kills them off. This is why you should always make sure poultry is fully cooked before consumption and that anything the raw meat touches is properly washed and sanitized.
2. Eggs
Salmonella is also an issue with one of the biggest breakfast foods in the world. What is dangerous about the egg is that even a contaminated egg will not look, smell, or taste any different than an uncontaminated egg.
In order to avoid egg contamination, do not consume raw eggs or taste recipes that have raw eggs in them while they are being prepared. We recommend you purchase uncracked eggs and store them in your refrigerator.
3. Dairy Products
Dairy products like milk, cheese, and butter are also susceptible to contamination. Most of these contaminants stem from pesticides that are given to animals to “protect” their milk and meat. Also, you put yourself at risk to E. coli, salmonella, or listeria if you opt to consume raw milk. Always think twice about where your dairy is coming from and how you are storing it in a way that promotes food safety that lives up to the Texas Food Handler Certification standard.
4. Coffee
One surprising food on this list is coffee. Most coffee is cultivated in areas of the world where regulations on chemicals and pesticides are nonexistent. Some of the pesticides used in the growth of coffee are so dangerous that they are illegal to use on American farms.
In order to ensure that your coffee is not a victim of poor agricultural practices, seek out “Fair Trade” coffee for your establishment.
5. Seafood
It should be common sense that all seafoods must be stored properly from catch to preparation. There are many different illnesses that can come from contaminated seafood, depending on the seafood itself. Make sure to properly handle your seafoods and shellfish products to help prevent the spread of histamine or ciguatera poisoning.
Answer:
Dairy products (milk, cream, cheese, yogurt, and products containing them such as cream pies and quiches)
Eggs.
Meat or meat products.
Poultry.
Fish and seafood.
Explanation:
you are in a 98 story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. How long do you have for your elevator pitch ?
Answer: 50 seconds
Explanation:
I took the test just now.
You are in a 98-story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. Around 50 seconds you can have for your elevator pitch.
What is an elevator pitch?An elevator pitch, elevator speech, or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period.
This description typically explains who the thing is for, what it does, why it is needed, and how it will get done. When explaining a person, the description generally explains one's skills and goals, and why they would be a productive and beneficial person to have on a team or within a company or project.
An elevator pitch does not have to include all of these components, but it usually does at least explain what the idea, product, company, or person is and their value.
Learn more about elevator, here:
https://brainly.com/question/27128408
#SPJ5
Write a formula to return the first three characters in the last three characters in cell J one and excel
Use the Excel formula =LEFT(J1,3)&RIGHT to retrieve the first three characters and the final three characters from cell J1.(J1,3)
What Excel formula delivers characters in a cell that come after a certain character?The delimiter, which can be any character or substring, is returned by the Excel TEXTAFTER function. You can select the target occurrence if the delimiter occurs more than once.
What formula yields the character count?Enter =LEN(cell) in the formula bar and hit Enter on your keyboard to invoke the function. Multiple cells: Enter the formula in the first cell and then drag the fill handle down (or across) the range of cells to apply it to further cells.
To know more about Excel visit:-
https://brainly.com/question/30788953
#SPJ1
A rise in the market interest rate will cause the market value of a financial instrument such as a bond to rise. Select one: True False
Answer:
False
Explanation:
As we know that there is an opposite relationship between the price of the bond and the market interest rate. That means if there is a rise in the market interest rate so the price of the bond decreased
And, on the other hand if there is a decrease in the market interest rate so the price of the bond is increased
hence, the given statement is false
hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform those activities, is called
Hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform those activities, is called Outsourcing.
What is Outsourcing?Outsourcingcan be described as the way tat a omany can seek for labor outside the company, this method is usually used when a firm is seeking for a cheap labor.
It should be noted that some comapany do outsource from outside the company while some do perform outsourcing within the country all for cheap labor.
Learn more about Outsourcing at:
https://brainly.com/question/4456416
#SPJ1
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $4,650,000 and will be sold for $1,325,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset
Answer:
After tax salvage value of the asset = $1210274
Explanation:
Given book value of purchase = $4650000
Accumulated depreciation \(=4650000* ( 0.2 + 0.32 + 0.192 + 0.1152) = $3846480\)
Book value at the time of sale = book value of purchase - Accumulated depreciation
Book value at the time of sale = $4650000 - $3846480 = $803520
Gain on disposal = salvage value of plant - Book value at the time of sale
Gain on disposal = $1325000 - $803520
Gain on disposal = $521480
Tax on gain on disposal = 521480 * 22% = $114725.60
After tax cash flow = 1325000 – 114725.60 = $1210274
are entrepreneurs made
Answer:
Yes.
Explanation:
Entrepreneurs are not born. They are made. Entrepreneurs are not like athletes; they don’t need a natural inherent body and muscles. An athlete’s child may grow up an athlete, but it would not happen in an entrepreneur’s family. Many businesses bankrupted every day, including some entrepreneur’s families. However, entrepreneurs are naturally made, and they own some unique qualities and need some training and experience as athletes.
Answer:
Yes and no.
Explanation:
Successful entrepreneurs are born, they just need to know how to apply their traits in a certain way to most benefit them. However, you can not be fully successful without putting in effort and hard work.
Compared to the recommended percentages that should be allocated to transportation, 18% is _____.
A.too low
B.in the middle
C.the max
D.too high
Compared to the recommended percentages that should be allocated to transportation, 18% is too low. The correct option is A.
What is allocation in work?Allocation targets are logical groupings of users or work queues that can be assigned tasks and notifications. This enables the workflow administrator to assign tasks and notifications to a diverse group of users within the organization.
The freight expenditure incurred by the consumer to have purchased goods delivered is known as transportation-in. Costs such as freight insurance and customs duties can be included in this category.
Thus, the ideal selection is option A.
Learn more about allocation here:
https://brainly.com/question/29976811
#SPJ1
Why are countries motivated to trade with one another?
A. Trade prevents any one country from establishing an absolute
advantage over others.
B. Trade protects domestic businesses by shielding them from
foreign competition.
C. Trade allows them to produce a variety of products instead of
specializing in a few.
D. Trade helps them obtain goods they cannot produce as efficiently
as other countries.
Yoooooooo
Answer:
D Trade helps them obtain goods they cannot produce as efficiently
as other countries.
Trade helps countries obtain goods they cannot produce as efficiently as other countries which is a reason countries are motivated to trade with one another. The correct option is D
What are the two purposes of trade?Trade is crucial for maintaining a competitive global economy and helps to drive down worldwide product prices by promoting innovation and specialization in markets. Access to goods and services that may be more affordable and of higher quality than those available domestically is another benefit of trade.
By trading, countries can specialize in producing goods and services that they are good at and import goods that they cannot produce efficiently or do not have in sufficient quantities. This increases the efficiency of production and availability of goods, leading to economic growth and higher standards of living for people in trading countries.
Thus, the ideal selection is option D.
Learn more about Trade here:
https://brainly.com/question/27622280
#SPJ7
Select the correct answer.
The following is an extract of the balances of a company. What is the company’s return-on-assets percentage?
Items Amount ($)
Revenue 50,000
Expenses 10,000
Tax paid 10,000
Fixed assets 80,000
Current assets 20,000
A.
25 percent
B.
30 percent
C.
35 percent
D.
40 percent
Answer:
I believe the answer is B. 30 percent
good luck, i hope this helps :)
6. Suppose that the consensus forecast of security analysts of your favorite company is that earnings next year will be $5.00 per share. The company plows back 50% of its earnings and if the Chief Financial Officer (CFO) estimates that the company's return on equity (ROE) is 16%. Assuming the plowback ratio and the ROE are expected to remain constant forever: Suppose that you are confident that 10% is the required rate of return on the stock. What does the market price of $50.00 per share imply about the market's estimate of the company's expected return on equity? (please give a number) 1 point
10.0000%, market price of $50.00 per share imply about the market's estimate of the company's expected return on equity.
The given amount is;
The market price of $50.00 per share.The company's expected return on equity is 10%.ROE x blowback ratio16.0000% x 50.0000%8.0000%Because the needed rate of return to the stock is 10%, the market's assessment of the company's expected return on equity is greater than that derived using the plowback ratio and the ROE.
As a result, the significance of the market price of $50.00 per share imply about the market's estimate of the company's expected return on equity are the aforementioned.
Learn more about on market price, here:
https://brainly.com/question/31964955
#SPJ1
can I have free account please
Answer:
what kind of account?
i will give you don't worry
7. How does the quality of management relate to each of these causes of small business failure?
Answer:
Explanation:
The quality of management can have a significant impact on each of the causes of small business failure. Poor management can lead to financial mismanagement, which can cause a business to run out of cash and become insolvent. Ineffective management can also result in a lack of clear goals and direction, leading to a lack of focus and poor decision-making. Additionally, poor management can lead to problems with staffing and employee morale, which can negatively affect productivity and customer satisfaction.
On the other hand, good management practices can help a small business avoid these problems and increase the likelihood of success. Good management involves setting clear goals and making sound financial and strategic decisions, as well as effectively managing and motivating employees. By addressing these issues, a small business can improve its chances of avoiding failure and achieving long-term success.
Select the correct answer. What is the standard lettering height of lowercase letters when used in combination with uppercase letters? A. Lowercase letters must be about one-fourth the height of uppercase letters. B. Lowercase letters must be about twice the width of uppercase letters. C. The lower part of the lowercase letter must be about two-thirds the height of the capital letter. D. The upper part of the lowercase letter must be about two-thirds the height of the capital letter.
Answer:
B
Explanation:
The more ________ used, the greater the leverage a company employs on behalf of its owners.
The more debt used, the greater the leverage a company employs on behalf of its owners.
What is financial leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing.
What is financial leverage example?
Example of financial leverage usage include using debt to buy a house, borrowing money from the bank to start a store and bonds issued by companies.
Learn more about financial leverage here:
https://brainly.com/question/24623107
#SPJ4
Woolies environmental impact in relation to the triple bottom line
The environmental impact as regard is the Triple bottom is that Woolies has reduced the ways that it sends wastes to landfills and has also embraced the method of recycling.
What is the triple bottom line?This is the term that is used to refer to a sustainable network or frame work that a business may have to adopt. What this means is that they would have to adopt the practice of measuring the success of the business through the eyes of the following elements.
peopleplanetprofitHence The environmental impact as regard is the Triple bottom is that Woolies has reduced the ways that it sends wastes to landfills and has also embraced the method of recycling.
Read more on the triple bottom line here: https://brainly.com/question/17386608
#SPJ1
Can someone please help what’s the answer
Answer:
$161,000
Explanation:
Snap repair service accepted the seller counteroffer of $161,000. It means that Snap repair service paid the sum of $161,000 to acquire the land. Snap repair should record the value of the land as $161,000.
As per the guidelines of the generally accepted accounting principles, the value to be recorded is the amount paid to acquire the asset.
The following are the typical classifications used in a balance sheet:
a. Current assets
b. Investments and funds
c. Property, plant, and equipment
d. Intangible assets
e. Other assets
f. Current liabilities
g. Long-term liabilities
h. Paid-in-capital
i. Retained earnings
Required:
For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus sign before the chosen letter.
1. Equipment
2. Accounts payable
3. Allowance for uncollectible accounts
4. Land, held for investment
5. Note payable, due in 5 years
6. Deferred rent revenue for the next 12 months
7. Note payable, due in 6 months
8. Income less dividends, accumulated
9. Investment in XYZ Corp., long-term
10. Inventories
11. Patent
12. Land, in use
13. Accrued liabilities
14. Prepaid rent for the next 9 months
15. Common stock
16. Building, in use
17. Cash
18. Taxes payable
Answer:
thank you for your information
What are the components of hire purchase contracts
Answer:
Explanation:
Hire purchase contracts are a type of agreement where a buyer purchases a product or item through installment payments. The components of hire purchase contracts typically include:
Buyer: The individual or organization purchasing the item through the hire purchase contract.
Seller: The person or company that owns the item and is selling it through the hire purchase contract.
Down payment: The initial payment made by the buyer at the beginning of the contract, typically a percentage of the total purchase price.
Installment payments: The regular payments made by the buyer to the seller to pay off the total purchase price of the item.
Interest rate: The rate charged by the seller on the outstanding balance of the purchase price. This is typically higher than the interest rate charged on a conventional loan.
Term: The length of time over which the buyer will make installment payments. The term can vary depending on the agreement between the buyer and the seller.
Ownership: The ownership of the item remains with the seller until the buyer completes all the installment payments.
Default: The consequences of defaulting on payments, including the seller's right to repossess the item if payments are not made.
Termination: The conditions under which the contract can be terminated, such as if the buyer pays off the entire purchase price early or if the seller breaches the contract.
Overall, hire purchase contracts are a way for buyers to purchase items they may not be able to afford upfront, while allowing sellers to earn a profit by charging interest on the outstanding balance. It is important for both parties to carefully review and understand the terms of the contract before agreeing to it.
Sheridan Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to be constant at 7 percent. If the required rate of return is 16.00 percent, what is the current value of the stock? (Round all intermediate calculations and final answer to 2 decimal places, e.g. 15.20.)
Answer:
The current value of the stock is $33.35
Explanation:
The computation of the current value of the stock is shown below:
Particulars Dividends PVIF at 16% Present value
Dividend 1 $5 0.862 $4.31
Dividend 2 $6.25 0.743 $4.64
Dividend 3 $4.75 0.641 $3.04
Dividend 4 $3 0.552 $1.66
Dividend 5 $3.21
($3 × 1.07)
Price of the
stock in 4 years $35.67 0.552 $19.70
($3.21 ÷ (16% - 7%))
Current value
of the stock $33.35
Select the education or qualification that is best demonstrated in each example.
Esteban is good at making sure many different shipments happen on time.
Felicity is good at calculating and processing payments from customers.
Dino is good at convincing customers to buy a product.
Answer:
Esteban is good at making sure many different shipments happen on time.
Discuss the political, social, economic, technological and other
configurations that support cross-border trade by giving examples of any
multinational firms operating in Ethiopia
Answer: , I can give you an overview of the political, social, economic, and technological factors that support cross-border trade, along with some examples of multinational firms operating in Ethiopia.
Political Factors: - The government's policies and regulations play a significant role in supporting cross-border trade. - A favorable political climate encourages multinational firms to invest in the country.
- Ethiopia has implemented policies aimed at attracting foreign investors, such as tax incentives and relaxed regulations.
- The government's efforts to improve infrastructure, such as roads and ports, has also contributed to the growth of cross-border trade. Social Factors:
- The availability of skilled and affordable labor is an important factor that influences the growth of multinational firms in Ethiopia. - Ethiopia's young and growing population presents an opportunity for firms to expand their markets. - The cultural diversity of the country is also attractive to multinational firms seeking to expand their operations globally. Economic Factors: - Ethiopia has a liberalized economy with a stable macroeconomic environment that supports cross-border trade. - The country has made significant progress in economic reforms, including the privatization of state-owned enterprises. - Ethiopia's strategic location, with access to the Red Sea and proximity to the Middle East and Europe, has made it an attractive destination for multinational firms. Technological Factors: - Technology has played a significant role in supporting cross-border trade, making it easier and more cost-effective. - The use of e-commerce platforms has made it possible for multinational firms to reach customers in different parts of the world. - The availability of high-speed internet and mobile networks has also facilitated cross-border trade. Examples of Multinational Firms Operating in Ethiopia: - Coca-Cola is a global brand that operates in Ethiopia and has invested heavily in the country. - H&M, the Swedish fashion retailer, has opened stores in Ethiopia, taking advantage of the country's textile industry. - Unilever, the British-Dutch consumer goods company, has also invested in Ethiopia, setting up a manufacturing plant for its products. In conclusion, the political, social, economic, and technological factors mentioned above have contributed to the growth of cross-border trade in Ethiopia. This has attracted multinational firms to invest in the country, with many seeing Ethiopia as a potential hub for doing business in Africa
Explanation:
quản trị thương mại là gì?
1.1) The beta coefficient of Gans Ltd share is 0.9 and Handy Ltd share S has a beta of
1.8. The expected return on an average stock is 10%, the risk free rate is 4%. By how much
does the required return on the riskier stock exceed the required return on the less risky
stock?
You are given the following information on Daffy Ltd share and are required to answer the
questions that follow
State of economy
Boom
Normal
Bust
Probability
0.25
0.40
0.35
Return(%)
18
5
(2)
The risk free rate of interest is 4%, the return on the market is 10% and the beta of the firm is
1.2.
a) Calculate the expected return.
b) Calculate the required retum.
c) Explain whether the above asset should be purchased
Answer:
1. The riskier stock is the one with the higher beta which is Handy Ltd.
Use CAPM to calculate the required return on both stocks. The formula is:
Required return = Risk free rate + beta * (market return - risk free rate)
Gans Ltd Stock Handy Ltd Stock
= 4% + 0.9 * ( 10% - 4%) = 4% + 1.8 * (10% - 4%)
= 9.4% = 14.8%
Difference = 14.8 - 9.4
= 5.4%
2. a. Expected return
Expected return is a weighted average of the returns given the probability of the different state of economies.
= (0.25 * 18%) + (0.4 * 5%) + (0.35 * -2%)
= 0.045 + 0.02 - 0.007
= 5.8%
b. Required return
Using CAPM like in question 1:
Required return = Risk free rate + beta * (market return - risk free rate)
= 4% + 1.2 * ( 10% - 4%)
= 11.2%
c. The asset should not be purchased because its expected return is lower than its required return. This means that the stock is not providing enough return for the risk incurred.