Question: 1.Suppose the rate of return on short-term government securities (perceived to be risk-free) is 5%. Suppose also that the expected rate of return required by the market for a portfolio with a beta of 1 is 12%. According to the CAPM: a) What is the expected rate of return on the market portfolio? b) What would be the expected rate of return on a stock with β = 0? c) Suppose you consider buying a stock which does not pay a dividend. The current price is $50‚ and in one year
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Explain how organisations respond to IT development Adopting business processes In today’s society IT is becoming more essential in everyday life. We use IT to contact people‚ to shop and to find information. Businesses are now trying to adapt to the ways of IT so they can build a stronger connection between their business and their consumers. One of the ways businesses are doing this is by introducing loyalty cards. Loyalty cards are basically cards that companies give you rewards and therefore
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economist Steven Landsburg writes in The Armchair Economist (1991‚ p 3)‚ “Most of economics can be summarized in four words: ‘People respond to incentives.’ The rest is commentary.” People care about their employers‚ but they also care about their families‚ hobbies‚ gardens‚ and churches‚ which for the most part is why the incentives work so well. People respond to incentives differently. Take for example the professional athlete‚ who loves their team and talks about giving “110 percent” also
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What are some of the major challenges to HRM in today’s market and how would the management respond to those challenges? Workplace Diversity In today fast changing economy‚ human resource manager need to manage on the talent that can bring more idea and perspective to organization. If the organization needs to respond to business more rapidly and creatively‚ human resources manager need to handle the problem or challenge of workplace diversity wisely as this can be a valuable strategic organizational
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Research Paper SOC 454-002 Law Enforcement and Society November 12‚ 2013 How does Law Enforcement respond to gangs? Introduction Law enforcement agencies have a variety of tasks at hand that they have to perform; protecting‚ serving and problem solving are just a few. This research paper will look into how law enforcement responds to gangs‚ the background on police and gang relationships‚ and why the creation of gang police units. Multiple studies will be used
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How organizations organize to respond to the environment Human beings for millennia have used energy‚ initially it was with the use of fire for light‚ heat‚ cooking and for safety‚ and its use can be traced back at least 1.9 million years (Bowman‚ 2009). However‚ most of these resources are limited. According to P. E. Hodgson‚ a Senior Research Fellow Emeritus in Physics at Corpus Christi College‚ Oxford‚ expects the world energy use is doubling every fourteen years and the need is increasing faster
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The experiment was about people will respond to authority. In the experiment the teacher who is to obey the order of the authority who was the experimenter also the learner who was the recipient of incentive from the teacher. The teacher was given lists of words to teach the student‚ (learner) and the teacher have to read the original word given him also‚ read the four answers. What the learner would do was to press a button to show his answer. And‚ if the answer was wrong‚ the teacher would shock
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Animal Abuse Trisha Westbrook How is animal abuse linked to human abuse? What is animal abuse? Abuse is define to be a misuse or mistreatment and attempt to harm another person or thing. Several studies have shown that animal abuse and neglect may indicate that others in the home maybe at risk of abuse and neglect‚ also. Abuse has become a common place across the nation and taking on many different forms of abuse. It is believed that animals as well as humans have every right to a good
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activists‚ who argued for immediate freedom of slaves‚ trusted and followed Finney. However‚ Finney was a revivalist and evangelist. Finney must have contacted a tension between a revival ministry and an antislavery activity. How did Finney respond when he got at such a tension? How did Finney evaluate people who exhausted all effort to antislavery activity? Finney plainly had priority of evangelism even though he was enthusiastic about immediate abolitionism. Finney’s priority of evangelism is well shown
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Describe how the body responds to stress (6 marks) Acute stress causes the arousal of the autonomic nervous system (ANS). The ANS comprises of the sympathetic nervous system (SNS) which prepares the individual for ‘fight or flight’ and the parasympathetic branch‚ which returns the individual to their original state of relaxation. Part of the SNS response is the sympathetic adrenal system (SAM)‚ this system along with the SNS is collectively called the sympathomedullary pathway. The SNS is activated
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