why do all investors hold the market portfolio as their orp according to the capm?

Answers

Answer 1

According to the Capital Asset Pricing Model (CAPM), all investors hold the market portfolio as their optimal risky portfolio (ORP) because it offers the highest expected return for a given level of risk.

The CAPM assumes that investors are rational and seek to maximize their utility by efficiently allocating their investment funds.

The market portfolio consists of all available risky assets in the market, such as stocks and bonds, weighted by their respective market values. CAPM suggests that this portfolio represents the best diversified investment option, eliminating unsystematic risk through diversification. Since investors are assumed to be risk-averse, they aim to minimize unsystematic risk and only bear systematic risk, which cannot be diversified away.

Therefore, all investors hold the market portfolio as their ORP under CAPM to achieve optimal risk-return tradeoff and maximize their expected utility.

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Related Questions

knowledge check 01 shorebridge repair's current sales revenue is $150,000 and its break-even sales point is $120,000. it incurs fixed costs of $100,000. what is its margin of safety? multiple choice 1 $150,000 $50,000 $120,000 $30,000

Answers

The margin of safety for Shorebridge Repair is $30,000. The answer is option D) $30,000.

The margin of safety is the amount by which actual sales exceed the break-even point, indicating how much sales can decline before the company starts incurring losses.

Margin of Safety = Actual Sales - Break-even Sales

Given that Shorebridge Repair's current sales revenue is $150,000, and its break-even sales point is $120,000, we have:

Margin of Safety = $150,000 - $120,000 = $30,000

Therefore, the margin of safety for Shorebridge Repair is $30,000. The answer is option D) $30,000.

Option D is correct

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cornelius vanderbilt made his fortune in what industry?

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The Railroad industry!! :)

Which of the following demonstrates active listening while receiving constructive criticism well

Answers

Please finish the question!

Answer:

c

Explanation:

According to the _____, transfer will be maximized when the tasks, materials, equipment, and other characteristics of the learning environment are similar to those encountered in the work environment.

Answers

According to the theory of identical elements, transfer will be maximized when the tasks, materials, equipment, and other characteristics of the learning environment are similar to those encountered in the work environment.

The theory of identical elements, transfer will be maximized when the tasks, materials, equipment, and other characteristics of the learning environment are similar to those encountered in the work environment. This theory suggests that learning is most effective when there is a high degree of similarity between the learning context and the context in which the knowledge or skills will be applied. By designing learning environments that closely resemble the work environment, learners are better able to apply what they have learned in the training to real-world situations. This can result in improved job performance, increased productivity, and other benefits for both the learner and the organization.

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How important is money

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Answer:

very important

Explanation:

money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.

A 3rd degree burn has burnt only part of the epidermis. the epidermis only. the epidermis and dermis. the epidermis and part of the dermis.

Answers

A 3rd degree burn has burnt the epidermis and part of the dermis. Option 3 is the correct answer.

A 3rd degree burn is a severe burn that extends through the entire thickness of the skin. In a 3rd degree burn, the epidermis, which is the outermost layer of the skin, and part of the dermis, which is the layer beneath the epidermis, are affected. This type of burn destroys the full thickness of the epidermis and can extend into the deeper layers of the dermis.

The epidermis serves as a protective barrier for the body, preventing the entry of harmful substances and pathogens. It also helps regulate body temperature and plays a role in the production of vitamin D. The dermis provides structural support, contains blood vessels, nerve endings, sweat glands, and hair follicles.

Due to the severity of the injury, 3rd degree burns often require medical intervention and specialized treatment. They can result in extensive tissue damage, loss of sensation, and impaired healing. Treatment may involve surgical interventions, such as skin grafting, to promote healing and minimize the risk of infection. Rehabilitation and long-term care are often necessary to manage the physical and psychological effects of a 3rd degree burn.

Hence, option 3 is the right choice.

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if the owner of a television station is a staunch conservative and sells advertising time to the republican candidate but refuses to sell available adverting time to the democratic candidate, this would be a violation of the

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If the owner of a television station is a staunch conservative and sells advertising time to the Republican candidate but refuses to sell available advertising time to the Democratic candidate, this would be a violation of the Federal Communications Commission (FCC) regulations on political advertising. Therefore, the correct option is D. Federal Communications Commission (FCC) regulations on political advertising.

Political advertising is the use of political messages to influence voters' opinions, promote political agendas, and solicit political donations or support. Political advertisements are typically used in campaigns for political office or ballot measures. Television commercials, radio commercials, and direct mail are all common forms of political advertising.

Political advertising is governed by a variety of regulations in the United States, which vary depending on the medium and content of the message. In conclusion, this is a violation of the Federal Communications Commission (FCC) regulations on political advertising. Therefore, the correct option is D. Federal Communications Commission (FCC) regulations on political advertising.

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what is the first step in planning business messages? question 33 options:
- gathering information
- outlining & listing important information to prep
- analyzing the situation
- Choosing medium and channel

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The first step in planning business messages is analyzing the situation. Option (c) is correct.

Developing a company's mission or goals and outlining the techniques you'll employ to accomplish those tasks or goals constitute business planning. The procedure might be comprehensive, covering every area of the business, or it can be detailed, concentrating on particular tasks within the larger corporate framework.

Any message should start with a situational analysis that includes identifying your goals and creating an audience profile. When you are certain of the goals you want to achieve with your message, acquire data that will be useful to your audience.

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Why is it good to be organized?

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Answer:

its good to be organized to feel like you have your life together. it makes it easier to find things and makes you feel less stressed and anxious when the area youre in is organized and clean

Because when you are organized things are easier, you have an organized sleep schedule and your school things and papers are organized so it's easier to know where everything is. Also when you are organized you'll notice some things would run smoother than it would when you aren't organized. But you have to want to be organized.

Your civil engineering firm has been contracted to lay water pipes for two streets in a new neighborhood. The pipes (that will connect to the city's main intersection) must be able to provide 2030 gallons of water per minute to the new homes being built. The design calls for two safety valves that are each known to leak 1. 20% of the water passing through them. How many gallons per minute must the water department provide at the main intersection (before entering your two pipes)

Answers

The civil engineering firm must be able to provide 1910 gallons of water per minute to the new homes being built.

What is firm?

A firm is an for-profit business entity that offers professional services, such as an corporation, company with limited liability (LLC), or partnership. Most businesses only have one location. They insist on keeping tight reins on the project. His voice was gentle but stern as he addressed her.

Are companies and firms the same thing?

A business that seeks to make money by offering goods and services is known as a firm. Firm and business are both acceptable terms. Numerous business structures, including sole proprietorships and corporations, are possible.

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What challenges and benefits of diversity management do those responsible for hr policy development and implementation face? how should hr leaders use policy most effectively to overcome challenges and recognise the benefits of a diverse workforce? what specific issues of national legislation on equality in the workplace are being followed to enforce the areas of equality and diversity?.

Answers

Top Challenges of Diversity in the Workplace—And How to Address ThemCommunication issues. Cultural misunderstandings. Slower decision making. Inequitable inclusion. Discrimination. Final thoughts on the challenges of diversity in the workplace.

What are the benefits and challenges of diversity?

Diverse cultural perspectives can inspire creativity and drive innovation. Local market knowledge and insight makes a business more competitive and profitable.

Cultural sensitivity, insight, and local knowledge means higher quality, targeted marketing.

How can diversity management benefit HR leaders?

Here are some of the key statistical takeaways, as per a study conducted by Glass door: Ethnically diverse and inclusive companies are 33% more successful. 1.7 times more likely to become innovation leaders in their field. Have better odds of attracting top talent, as 67% of job seekers care about diversity.

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. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.) B с 1 Chapter 14: Applying Excel 2 3 Data 4 Example E 5 Cost of equipment needed $ 290,000 6 Working capital needed $ 30,000 7 Overhaul of equipment in four years $ 30,000 8 $ 30,000 9 Annual revenues and costs: 10 Sales revenues $ 420,000 11 Cost of goods sold $ 260,000 12 Out-of-pocket operating costs $ 85,000 13 Discount rate 10 % a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar.) Net present value c. The internal rate of return is between what two whole discount rates (e.g., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? The internal rate of return is between % and % Salvage value of the equipment in five years d. Reset the discount rate to 10%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value? Minimum salvage value required to generate a positive present value

Answers

The given discount rate is 10%.The present value factor for 5th year (n=5, i=10%) from Exhibit 148-1 is 0.62Salvage value of the equipment in five years = 50,000 / 0.62 = 80,645.16d.

Calculation of minimum salvage value required to generate a positive present value: The calculation of the present value of cash inflows and present value of salvage value is done in the same way as in part a. and part c. respectively.

The net present value will be zero when the present value of cash inflow is equal to the present value of the initial cost and present value of the salvage value. Let us calculate the minimum salvage value required to generate a positive present value.

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At potential gdp, there is only structural and frictional unemployment.
a) true
b) false

Answers

At potential gdp, there is only structural and frictional unemployment.

This statement is true.

Unemployment is the result of the situation when  workers are losing their jobs, which can lead to an increase in cyclical unemployment due to an economic downturn, but if unemployment persists for many years, it will lead to structural unemployment.

Structural unemployment is a type of unemployment which can last for many years and it can also be caused by changes in technology or shifting of demographics.

Cyclical unemployment is caused by economic downturns or is related to changes in business conditions that affect the demand for workers.

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Is the following scenario a partnership? Performing in a twenty-piece band with a rotating showcase of trumpeteers.
OYes
ONo

Answers

Answer:

no

Explanation:

there isn’t a sense of ownership between two people

Nancy Billows bought a $7,000 desk at Furniture. Based on her income, Nancy could only afford to pay back $700 per month. The charge on the unpaid balance is 3%. The U.S. Rule is used in the calculation. Calculate the balance outstanding at the end of month 2. (Round your answer to the nearest cent.)

Answers

Answer and Explanation:

The computation of the balance outstanding at the end of the month 2 is shown below:

Month   Due balance  Interest  Monthly     Balance        Oustanding

                                                     payment    Reduction     Balance

1            $7,000           $210         $700          $490              $6,510

                         ($7,000 × 3%)                  ($700 - $210)  ($7,000 - $490)

2           $6,510            $195.30    $700          $504.70        $6,005.30

                          ($6,510 × 3%)        ($700 - $195.30)  ($6,510 - $504.70)

what are some economic concerns that may need to be addressed in the future?

Answers

Over population, It can result from an increase in births (fertility rate), a decline in the mortality rate, an increase in immigration, or a depletion of resources. And less food for people who actually need it the state that had the least amount of people is China because it has a one child policy and if they break the law they can be executed and it’s to maintain current unsustainable consumption patterns while blaming the poor, women, people of color, immigrants, and those residing in the “global South” who produce a negligible impact on the environment.

What is demand comprised of

Answers

demand consists of all consumer goods, capital goods, exports, imports, and government spending programs. Hope this helped :)

Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. If the two countries do not trade, Cornland will produce and consume 400 bushels of corn and 100 bushels of oats, while Oatland will produce and consume 60 bushels of corn and 400 bushels of oats. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by

Answers

Answer:

see. I hope it's helpful for you lol

Explanation:

i need friend lol can you my friend
Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year,
Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year,

john had a lot of medical bills over the course of a year. his total bill was 5600. his insurance company would not post any of his bill until he paid 500. this is called a

Answers

Until he paid 500, his insurer would not publish any of his bill. It is known as a deductible.

The term "deductible" means what exactly?

The deductible in an insurance contract is the sum that must be paid out of cash by the policyholder before the insurance company will cover any costs.

In common parlance, the term "deductible" may be used to refer to any one of a number of clause types that insurance firms employ to establish a payment threshold for policies.

The deductible is the sum that a policyholder must pay out of pocket before the insurance provider begins to make payments. In other terms, the insurance provider is only required to pay a claim when the amount is greater than the deductible.

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What ancient people used hieroglyphics to record important economic, administrative, and royal information? question 8 options: egyptians sumerians israelites persians

Answers

The ancient people used hieroglyphics to record important economic, administrative, and royal information is Egyptians.

Egyptian Hieroglyphics was the formal writing system used to write the Egyptian language in ancient Egypt. Hieroglyphs are about 1,000 different characters that combine elements of logos, syllables, and the alphabet. Italic hieroglyphs were used in religious literature on papyrus and wood.

The word hieroglyph literally means sacred carving. The Egyptians initially used hieroglyphs only for inscriptions carved or painted on the walls of temples. This form of the paintbrush was also used on tombs, papyrus sheets, stucco-covered wooden boards, pottery fragments, and limestone fragments.

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why do people care about their social status?

Answers

Answer:

because they could be very popular

Explanation:

can you give brainliest

Kowabunga was a US based beach clothing and gear company. The owner of the company wanted to expand into markets in Mexico, Australia and Fiji. The company compared the emerging markets to see which had the highest growth rates. Which external business environment did the company evaluate for its expansion?

Answers

Based  on the given details the external business factor environment that did the company evaluate for its expansion is sociocultural.

Socio-cultural as a business external factor has to do with the environment culture or customs and belief as well as the type of fashion trend they have in vogue.

For a clothing company to be successful the consumer, their income level or wealth, growth rate and the environment  at large has to be put into consideration.

The company has to as well evaluate the market activities of the country as this can help to influence their decision when trying to expand into another country market as well as their strategic goals when introducing their product into an another country.

Inconclusion the external business factor environment that did the company evaluate for its expansion is sociocultural.

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market structure in which a few large sellers dominate the market and have the ability to affect prices in the industry is called?

Answers

Oligopoly. Few companies control an oligopoly, which has little competition. They can work together or fight with one another to use their combined market power to raise prices and increase their profit.

The goal of marketing is to generate interest in the goods and services that your business offers.Understanding the preferences of your target market and doing market research are both helpful in this. Marketing encompasses all aspects of developing products, selling them, planning for distribution, and advertising.In order to encourage more sales of its goods or services, a company's marketing initiatives include developing, distributing, delivering, and trading offers that are useful to customers. The primary goal of marketing campaigns is to increase sales for the business. As a result, all aspects of producing, disseminating, delivering, and exchanging goods that customers value are included in the marketing process.

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the school cafeteria raised its plate of rice from ₽8 to ₽10. if the same rate of increase was applied to a regular order of viand which used to cost ₽20. how much does an order of viand cost?

Answers

To know the percentage increase in cost of plate of rice we have to find the difference first i.e. 2/8 × 100 = 25% and 25% of 20 is 5 an increase will result in viand cost of 25.

A price change in the stock market refers to an increase or decrease in the costof a security or other asset. A stock's closing price may fluctuate from one trading day to the next, which is another use for the expression. The norm for estimating asset performance is often the percentage change in price. It is critical to remember that percentage-based price modifications are only pertinent when taking the whole dollar amount involved into account. Price hikes for your products and services may have an impact on marketing and finances. Economically speaking, decreasing consumer demand is often the effect of rising pricing.

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the irs found that using analytics improved its ability to find tax cheats. what type of model was the irs most likely using?

Answers

The IRS was most likely using a predictive analytics model to improve its ability to find tax cheats. This model would use historical data and statistical algorithms to identify patterns and trends that indicate potential fraudulent behavior. By analyzing vast amounts of taxpayer data, the model could flag potential cases for further investigation, allowing the IRS to target its resources more effectively and efficiently.
The IRS most likely used a predictive analytics model to improve its ability to find tax cheats. This type of model analyzes historical data and patterns to predict the likelihood of certain behaviors, such as tax evasion. By using predictive analytics, the IRS can more effectively identify potential tax cheats and take appropriate actions to ensure compliance.

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The four career pathways in Finance are

Banking and Related Services, Insurance Services, Retail Sales, and Business Financial Management.
Securities Law, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Banking and Related Services, Retail Sales, Securities Law, and Business Financial Management.
Banking and Related Services, Insurance Services, Financial and Investment Planning, and Business Financial Management.

Answers

Answer:

D

Explanation:

Answer:

D.

Explanation:

EDGE2022

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It allows you to rent a car while yours is being repaired. a. auto replacement c. personal damage liability b. comprehensive physical damage d. rental reimbursement

Answers

Answer:

I'm pretty sure the answer is d

Explanation:

Alternatively, you may pay out-of-pocket for your rental then seek reimbursement from the other insurance company once it completes its investigation.

Answer:

D

Explanation:

helppppp
estion 21 5 points ve Please read the Following short Scenario and answer the two questions given at the end Juniper is among the world's largest manufacturer and supplier of networking equipment. The

Answers

To deal with this problem in the systems, Juniper can offer technical support, develop knowledge resources and conduct training and workshops.

How can this issue be addressed by Juniper?

Some strategies that Juniper can apply are:

Offer comprehensive technical support: The idea would be to provide a service or team that can offer guidance to the engineers.Develop knowledge resources: Juniper can create a robust knowledge base such as online documentation, troubleshooting guides, and frequently asked questions (FAQs). Conduct training and workshops: These sessions can cover topics like system setup, maintenance best practices, and troubleshooting techniques.

Note: This question is incomplete; here is the missing information:

The company supplies to many fems in the sector with systems, and operates globally. f The main users of the equipment are the engineers who set up and maintain the systems in the dirt companies. These engineers will encounter problems that the Wee of the w for the systems will be needed, systems will crash occasionally, unforeseen circumstances will cause new problem or new challenges on a pila ba Q-24.1 What Juniper can do to provide solutions about the problems to the buying organizations?

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What have lenders established to protect borrowers from unlimited increases in the interest rate?

Answers

Borrowers are protected from unlimited increases in the interest rate, lenders establish " interest rate caps."

The first cap which is known as the periodic cap sets the amount of increase or decrease which is  allowed in each adjustment period. The second cap  which is known as overall or aggregate cap sets a maximum interest-rate increase over the lifespan of the loan.

An interest rate cap is a limit on the amount how much high an interest rate can rise on variable-rate debt. Interest rate caps can be fixed across all types of variable rate products. But these  are commonly used in variable-rate mortgages only or in the  specifically adjustable-rate mortgage loans only.

Interest rate caps can also have an overall limit on the interest for the loan and also be used to limit incremental increases in the rate of a loan.

Interest rate caps provide borrowers a  good protection against the dramatic rate increases and it  also provide a ceiling for maximum interest rate costs.

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science week1 qarter4 grade 8​

Answers

Answer:

Explanation:

444

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2. What is the mode of this data set?6, 7, 7, 8, 8, 10, 12, 12, 13, 13, 13 The length of a roundtrip hike of the half dome trail is normally distributed with a mean of 11.4 hours and a standard deviation of 2.1 hours. thirty roundtrip hikes of the half dome trail are selected at random, and we are interested in the mean length. a) define the random variable of interest. b) state the distribution of the rv of interest. c) what is the probability that the mean length is between 9 and 12 hours which excel test should you use to perform a ""pooled variance t_test""? Simplify (9m^5n^-7) ________ without negative exponents 27m^6n^5 Wilderness areas ________.allow hunting as long as proper permits are acquiredare off-limits to development of any kind but are open to low-impact recreationwere set up under the administration of George W. Bush in the early 2000swere set up under the wise-use movement of the 1980s and 1990sare biosphere reserves managed by UNESCO the _______ is the brain structure that registers emotions, particularly fear and anxiety. Find the difference of the two expressions. (2/3+2)(1/34)2+61/321/3+6 Answer choices 8610Please help and dont give me a link cause Im Not falling for it 700 mL of Tata cooking oil costs $189. Xtra cooking oil sells for $300 per litre. Which is the better buy? LTP and LTD in CA1 of the hippocampus may reflect the bidirectional regulation of which two processes? A. Phosphorylation and the number of GABA receptors B. Phosphorylation and the number of open sodium channels C. Phosphorylation and the number of mitochondria D. Phosphorylation and the number of postsynaptic AMPA receptors how do you start a hypothesis in science which includes scientific words and information which is on how much sugar can dissolve in water using the temperature of the solvent which is the water? Read the excerpt from Martin Luther King Jr.s I Have A Dream speech. But one hundred years later, the Negro still is not free. One hundred years later, the life of the Negro is still sadly crippled by the manacles of segregation and the chains of discrimination. One hundred years later, the Negro lives on a lonely island of poverty in the midst of a vast ocean of material prosperity. One hundred years later, the Negro is still languished in the corners of American society and finds himself an exile in his own land. And so we've come here today to dramatize a shameful condition.Which statement best explains the meaning of the phrase one hundred years later in the excerpt?A. No progress has been made in the last 100 years.B. People have been working for social progress for a very long time, and freedom must be granted now. C. Social progress takes time, and the demonstration is another step toward freedom. a poll states that a candidate will receive 43 percent of the vote. there is an 8 percent margin of error. what should you think of the poll? Type and equation for the following pattern Write two expressions that are equivalent to the expression below. (9- c) +(9 -c)+(9- c) +(9- c) A drop in water temperature is observed when 0.873 g of ammonium nitrate (NH4NO3) is added. The enthalpy change for this reaction is 0.280 kJ. Which In the first generation of each experiment, how do the characteristics of the offspring compare to the parents' characteristics? which best describes how organisms process materials to gain energy for life processes? I nned help with help plssssss phage lambda chooses the lytic cycle a majority of the time under normal conditions. question 2 options: true false