Answer:
The correct answer is option (D).
Explanation:
According to the scenario, having a discussion with customers and product enthusiasts show as listening to the community related to the products and this is also an informal process to gather insights.
While the other options are incorrect because of the following reasons:
Option (A) shows the formal process. Option (B) is not correct because the scenario describes the discussion with customers. Option (C) is not correct because he is discussing to get an insight about the products. Option (D) is not correct because the scenario describes the discussion with customers.Stefan is carrying out the informal process of listening to the community to gather research insights, involving discussions with various stakeholders and utilizing methods such as advisory boards and interviews.
Explanation:Stefan is engaging in an informal process to gather insights and guide his research efforts by listening to the community. This involves having discussions with customers, product enthusiasts, and other individuals participating in online communities. Alternatives to formal research include seeking input from an advisory board, consulting with professionals, gathering information from stakeholders, and conducting interviews. Utilizing such information allows for a phase called reflective observation, where insights are developed through interaction and consideration of various perspectives, leading to a more comprehensive understanding of the research topic.
A telecommunications company is impacted by government regulations of the wireless spectrum, cell tower locations, and Internet accessibility. The company decides to hire a lobbying firm to represent its interests with the U.S. government, specifically the FCC, FTC, and Congress. This is an example of a company managing which forces in the macroenvironment?
Answer:
Political and legal forces
Explanation:
The external environment of an organization wherein it operates is referred to as it's macro environment. Macro environment can be explained by the acronym PESTLE, which can be explained as Political factors, Economic factors, Socio cultural factors, Technological factors, Legal factors and Ecological factors.
In the given case, the macro factor affecting the company is it's political and legal environment. Political environment refers to the political dynamics and legal environment includes legal framework such as laws and rules enacted.
Here, the company is impacted by government regulations (Political factor) and hires a lobbying firm (Legal factor) to represent it's interests with the U.S government.
Paul is able to look at things from different perspectives. He prefers to watch rather than do, and tends to gather information and use his imagination to solve problems. What would Paul’s learning style be according to the Kolb Learning Style Inventory?
a. Assimilator
b. Diverger
c. Accommodator
d. Converger
Paul would be classified as a 'Diverger' according to the Kolb Learning Style Inventory, given his tendency to view situations from different viewpoints and use his imagination for problem-solving
Explanation:According to the Kolb Learning Style Inventory, Paul would be classified as a Diverger. Divergers are people who excel at viewing concrete situations from many different viewpoints and rely upon brainstorming and imagination. This attribute is clear in Paul's tendency to gather information, observe situations, and use his imagination to find solutions, as mentioned in the question. Divergers are generally interested in people and emotional concepts, often found to be imaginative and strong in the arts.
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A test is scheduled for Monday morning, but you went to a party on Saturday night. If you hadn't attended the party, you could have studied for the test or gone to a movie. Which of the following sentences is true?
a. The opportunity cost of going to the movie is studying for the test.
b. The opportunity cost of going to the party is the movie.
c. The opportunity cost of going to the party is both the movie and the study time.
d. Because you could go to the party only that night but could go to a movie any time, the opportunity cost of the party is the study time.
e. From the above information it's not possible to determine the opportunity cost of attending the party.
Final answer:
The opportunity cost of attending the party is the most desirable alternative foregone, which is study time if that was the next best option valued by the decision-maker over going to a movie.
Explanation:
The question involves understanding the concept of opportunity cost in economics. Opportunity cost refers to the most desirable alternative that is foregone when a choice is made. In the scenario presented, since you have chosen to attend the party, your opportunity cost is the next best alternative you would have chosen if you did not go to the party. If studying for the test was your next best alternative, then that represents the opportunity cost. The fact that you could go to a movie any time does not exclude studying from being an opportunity cost, as opportunity cost depends on what you, the decision-maker, value more at the time of the choice.
Considering that, the correct answer to the question "A test is scheduled for Monday morning, but you went to a party on Saturday night. If you hadn't attended the party, you could have studied for the test or gone to a movie. Which of the following sentences is true?" is:
d. Because you could go to the party only that night but could go to a movie any time, the opportunity cost of the party is the study time.
Bond issuance must be____________.A. approved by the board of directors.B. terms are set forth in a legal document called a bond indenture.C. contractual interest rate is also referred to as the stated rate.D. all of the answer choices are correct.
Answer:
D. all of the answer choices are correct.
Explanation:
the board of directors decides for the most important decision of the company As bonds sually will represent a long-term financing which a considerable weight in the capital structere iof the company they will decidwe the amount and terms of the bond.
Also, the firm will sing a contract which is called bond indenture with the bondholders to guarantee it will respect the condition.
the contractual interest is the coupon rate, nominal rate or stated rate of the bond it is fixed through the life of the bond unless, specify otherwise.
Current issues in OSCM do not include: Multiple Choice 1. Coordinating relationships between organizations 2. Making senior management aware that OSCM can be a competitive weapon 3. Managing customer touch points 4. Increasing global supply chain employment
Answer:
4. Increasing global supply chain employment
Explanation:
The design, implementation and development processes for developing and supplying key goods and services of the business are Operations and Supply Chain Management (OSCM).
OSCM's current problems are :
1. Coordination of relations between supporting and independent organisations.
2. Optimize regional networks for suppliers, manufacturers and distributors.
3. Customer contact points management.
4.. Increasing recognition of OSCM as a significant strategic instrument for upper management.
5 Sustainability.
The current issues in Operations and Supply Chain Management (OSCM) do not include increasing global supply chain employment. Therefore, option 4 is correct.
Operations and Supply Chain Management (OSCM) encompasses the planning, coordination, and execution of various activities involved in delivering products and services to customers.
Current issues in OSCM include optimizing supply chain resilience and agility to cope with disruptions and uncertainties, implementing sustainable practices to minimize environmental impact, managing global supply chain risks, leveraging technology for digital transformation, enhancing supply chain visibility and transparency, and addressing ethical concerns related to social responsibility and labor practices.
Additionally, the rise of e-commerce and omnichannel retailing, increasing customer expectations for fast and personalized delivery, and the need to effectively manage inventory and demand fluctuations are also significant challenges in today's OSCM landscape.
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Brian, the operations manager in a company that manufactures light bulbs, calculates the daily productivity at the factory by determining the amount of tungsten filaments required to produce a light bulb. In this scenario, Brian calculates _____
a) partial productivity
b) internal service quality
c) multifactor productivity
d) the service recovery ratio
Answer:
A) partial productivity
Explanation:
partial productivity refers to smaller parts of company operations that can be used as a standard of measurement to gauge company's productivity as a whole.
in the example above, Brian examine the number of tungsten filaments.
Even though number of tungsten filaments alone cannot be used to measure company's productivity as a whole, higher number of tungsten filaments usually correlate with finished products that can be sold to the customers. Which means that this smaller part of company's operation can be used to gauge company's overall productivity.
What refers to analysis of environmental impacts of products from the design stage through end-of-life?
Answer:
Life cycle assessment
Explanation:
Life cycle assessment is a technique that is used to analyse the environmental impacts of products from the design stage through end life. This assessment technique helps to examine the environmental impacts of products throughout their lives. It consists of 5 stages of material extraction, manufacturing, packaging and transportation, use and end of life. This analysis is carefully designed to effectively estimate the environmental impacts.
A nonsolicitation clause prohibits employees from: a. Using or disclosing any of the employer's trade secrets b. Competing with the former employer for some period of time c. Engaging in any business activities unrelated to the employee's job d. Recruiting former coworkers to join the new enterprise
Answer:
D. Recruiting former coworkers to join the new enterprise
Explanation:
A Non solicitation agreement is an agreement that restricts or prohibits a former worker or employee of an organisation from soliciting their former co workers or customers of their ex- employer for their own benefit or the benefit of the organisation's competitors .
it restrict the use of the customer of their ex - employer for their own personal business or the business of the new enterprise in which they find themselves.
Answer:
d. Recruiting former coworkers to join the new enterprise.
Explanation:
A nonsolicitataion clause is an agreement between and employer and an ex-employee that prohibits the employee from soliciting the employer's clients, or contacts for personal gain after leaving the company. Employee should not also recruit former colleagues to move to another employment.
The Texas economy:
The widespread economic downturn of the past decade was marked by job loss and decreased consumer spending nationwide. Additionally, many parts of the economy are undergoing massive changes as new business types emerge and mature. The quest for the "next big thing" in tech brings many to a major event in Texas each year.
Historically, the state of Texas has gone through periods of boom and bust primarily related to fluctuations in the price of___________ . The attempts made to diversify the state's economy have helped maintain area real estate values and financial fortunes in a time of international economic tumult.
Answer:
Oil
Explanation:
Crude oil is the main economic product in Texas and because of the fast cash that can be made from oil the economy is finding it hard to diversify into other sources of economic wealth. Fluctuations in oil prices generally control the economy.
Recently tech companies have become another booming source of business in Texas.
Which of the following is a marketing metric used to analyze website traffic and tracks the number of visitors who enter a site, and then leaves it? A. Bounce rate B. Sampling C. Predictive technology D. Cookies E. Longitudinal design
Answer:
A. Bounce rate is the correct answer.
Explanation:
Bounce rate is a kind of network analytics that measures the percentage of the people visiting and leaving the website.The bounce rate is one of the major metrics which is used to know how properly the website is working.The bounce rate is determined by tracking the total number of single-page visits and then dividing it by the entire visits.Ashlyn is a single person with no dependents. She normally receives over $1,800 every year for an income tax refund. She is having difficulty paying her monthly bills every month. What tax advice would you give her?
Answer:
Ashlyn can increase her exemptions through her w-4 form at her place of work
Explanation:
The Form W-4 represents a tax related form which gives an employer the amount to be withheld from an employee's paycheck. The W-4 form is labelled the Employee's Withholding Certificate. It is the responsibility of the employee to fill his/her w-4 form as such, the employer will use the filled form to compute payroll taxes to be submitted to the IRS on behalf of the employee.
Ashlyn is therefore, has the option of increasing her exemptions lowering her tax bills for the year helping her pay her monthly bills.
Burglar Bob breaks into Vince Victim's house. Bob steals a flat-screen television and laptop and does a significant amount of damage to the property before he leaves. Fortunately, Vince has a state-of-the-art security system. It captures excellent images of Bob, who is soon caught by police.
Assume that two legal actions follow, one civil and one criminal. Who will be responsible for bringing the civil case? What will be the outcome if the jury believes that Bob burgled Vince's house? Who will…
Who will bring the civil case.
Vince
Who will bring the criminal case.
The government
In the criminal case, the district attorney represents who?
the government
Who will be a defendant in the criminal case and who will be a defendant in the civil case.
Bob and Bob
If the jury in the civil case believes that Bob burgled Vince's house, then what?
Bob may be required to pay Vince money
if the jury in the criminal case believes that Bob burgled Vince's house, then what?
Bob may go to prison and/or pay a fine to the government
If Bob is found guilty of a crime, it means he probably violated what?
a statute
Answer:
Who will bring the civil case.
Vince Victim´s lawyer, Vince will probably need a lawyer to sue BobWho will bring the criminal case.
The District AttorneyIn the criminal case, the district attorney represents who?
the people (society as a whole including the government), district attorneys act on behalf of the peopleWho will be a defendant in the criminal case and who will be a defendant in the civil case.
Burglar Bob in both the criminal and civil casesIf the jury in the civil case believes that Bob burgled Vince's house, then what?
Burglar Bob will have to pay a monetary compensation.if the jury in the criminal case believes that Bob burgled Vince's house, then what?
Burglar Bob will have to spend some time in jail.If Bob is found guilty of a crime, it means he probably violated what?
a criminal lawWhether the trade balance is positive (surplus) or negative (deficit) is important because it provides a measure of the financing needs of a particular country. Hence, the trade balance is more important than the current account balance. True or false?
Answer:False
Explanation:The trade balance is not more important than current account balance. They are different concepts.
The balance of trade is a tool use to measure the relative strength of a country's economy by economist.
The balance of trade can measured by the examination of the difference between the value of a country's imports and the country'# exports for a given period. The balance of trade is happens to be the largest fraction in component of a country's balance of payments.
Suppose the price elasticity of demand for oranges is 1.8. If a fall frost destroys one-third of the nation's orange crop, how will that affect total revenue from oranges, all other things unchanged?
a) total expenditures will rise.
b) total expenditures will fall.
c) total expenditures will remain unchanged.
Answer:
b) total expenditures will fall.
Explanation:
If the price elasticity of demand is 1.8, it means demand is elastic. When demand is elastic, a small change in price leads to a greater change in quantity demanded.
If a fall frost destroys some of the nation's crops, the quantity supplied would fall as a result. This would lead to a shortage and price of oranges would rise as a a result. The rise in price of oranges would lead to a reduction in demand because demand is elastic. This would lead to a reduction in expenditure by consumers.
I hope my answer helps you
You are a professor of economics at a university. You've been offered the position of serving as department head, which comes with an annual salary that is $7,500 higher than your current salary. However, the position will require you to work 200 additional hours per year. Suppose the next best use of your time is spending it with your family, which has value of $10 per hour.
The change in net benefit is $___
Answer:
$5,500
Explanation:
Given that,
Increase in salary from switching a job = $7,500 but have to invest additional 200 hours per year
and the opportunity cost of spending this time with the family:
= $10 per hour × 200 hours
= $2,000
Therefore, the net benefit is as follows:
= Amount of increase in salary - opportunity cost
= $7,500 - $2,000
= $5,500
Hence, the change in net benefit is $5,500.
ValiantCorp is a C corporation that earned$ 3.90 per share before it paid any taxes. ValiantCorp retained $1 of after tax earnings forreinvestment, and distributed what remained in dividend payments. If the corporate tax rate was 35%
and dividend earnings were taxed at 12.5%, what was the value of the dividend earnings received after tax by a holder of 100,000 shares of ValiantCorp?
Answer:
the investor wil receive a net of 87,500 dollar after the taxation on diviends.
Explanation:
we are given with the after-tax distribution for the company at $1 dollar per share
100,000 shares x $1 each = $100,000 cash dividends
then we apply the dividends earnings taxation to solve for how much is the after tax cash received by the holder:
$100,000 x (1 - 0.125) = $87,500
Answer:
$134,312.50
Explanation:
first of all we have to calculate the corporate taxes that ValiantCorp owes:
$3.90 x 35% x 100,000 shares = $136,500
net income = $390,000 - $136,500 = $253,500
net income per stock = $2.53¹/²
since the corporation retains $1 per stock for reinvestment, it will distribute $1.53¹/² per stock x 100,000 stocks = $153,500
the stockholders will receive $153,500 x (1 - 12.5%) = $134,312.50
A great way to keep followers up to date on your business is to utilize __________ online. A. comments and critiques B. orientations C. status updates and announcements D. summaries E. narratives
Answer:
c. Status Update and Announcements
Explanation:
By keeping customers up-to-date with the recent development and also making announcements in your business the customer will be carried along properly in other to create a continuous and long lasting customer relationship.
For example: Social media or mailing notifications - updates are being passed across through selected means to customers before logging in into the platforms which has lead to the increase and continuous use of both platforms effectively.
Splish Brothers Inc. purchased equipment for $18000 on December 1. It is estimated that annual depreciation on the computer will be $3600. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
Answer:
The entries must be for recording the purchase of the asset:
Dr Fixed Asset $18,000
Cr Cash or Bank Account $18,000
The entry shows the decrease and one asset and increase in the other asset. If the asset is increased then it must be debited (FIXED ASSET) and if it is decreased then it must be credited (CASH).
The entry required to require depreciation would be:
Dr Depreciation Expense $3600
Cr Accumulated Depreciation $3600
The depreciation is an expense and increase in expense is always debited whereas the accumulated depreciation account is contra asset account and is credit in nature and its increase must be credited.
Outdoor Adventures is a company that sells clothing and gear related to all types of outdoor activities. In an effort to stave off competition, the company has begun keeping a log of customer interests and hobbies so it can alert them to local events of relevance, as well as send them articles that pertain to their favorite activities. In addition, Outdoor Adventures has added a section to its website where customers can post pictures of themselves using the store's gear. These efforts illustrate how the firm is engaged in
A. societal marketing.
B. a sales orientation.
C. relationship marketing.
D. logistics.
E. personal selling.
Answer: (C) Relationship marketing
Explanation:
The relationship marketing is one of the type of marketing form that helps in providing the various types of campaigns in order to understand the actual response of the consumer about the brands and the products.
The main objective of the relationship marketing is that it helps in creating the various types of new characteristics of the products based on the requirement of the customers and also strengthening the relations with the consumers.
According to the given question, the given company efforts is basically illustrating that the company is basically engaging in the relationship marketing.
Therefore, Option (C) is correct answer.
In the expenditure cycle, good control dictates that expenditures should be paid by check. This may not be feasible when minor purchases are made. To facilitate quick payment for minor purchases, a(n) ________ should be set up and maintained using ________.A) special bank account; disbursement vouchersB) imprest fund; vouchersC) cash box; small denomination billsD) petty cash fund; procurement cards
Answer:B) imprest fund; vouchers
Explanation:Imprest Fund is a small amount of money kept aside in a box,a container or a locker,it is usually managed by a custodian or the owner of the money to handle or manage incidents or unexpected situations. Most organisations give Imprest funds to certain Departments to manage unplanned and incidental occurrence.
Vouchers are a piece of note or printed paper that are used in exchange for cash, especially as it relates to imprest expenditures. Vouchers will help to create a form of control and monitoring on the use of imprest funds.
Answer:
To facilitate quick payment for minor purchases, a PETTY CASH FUND should be set up and maintained using RECEIPTS.
Explanation:
There is a mistake on the question, the actual cash is assigned to the petty cash fund, but the system that controls the petty cash fund is called the imprest system. The term imprest system is a very old term that refers to recording and replenishing the petty cash fund.
Initially a certain amount of money is set up as a petty cash fund and recorded under the petty cash account. Then as small expenses are paid using that money, they have to be recorded in receipts (or vouchers if you are British). Then as the petty fund is used up, the receipts are added and recorded, and then the fund is replenished.
Dion, an accountant for Entertainment Sports, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must____________
Answer:
Avoid unethical behavior regardless of the consequences.
Explanation:
Unethical behavior has genuine ramifications for the two people and associations. You can lose your employment and notoriety, associations can lose their believability, general spirit and profitability can decrease, or the conduct can bring about critical fines and additionally monetary misfortune.
Among the most exceedingly awful impacts of exploitative conduct on business is that an organization can't manufacture or keep up any long haul associations with clients.
Ashley opened an all-you-can-eat buffet restaurant. The cost per-person was based upon what Ashley believed an average restaurant patron would consume. The restaurant began to lose money. Ashley concluded that her patrons had "above average" appetites, and were attracted to her restaurant because they could eat as much as they wanted while being charged an average price. A similar phenomenon exists in insurance markets. This problem is called
A. moral hazard.
B. adverse selection.
C. morale hazard.
D. fundamental risk.
Answer:
B. adverse selection.
Explanation:
Because, the restaurant price is a flat fee the person which find this attractive are those who eat above average.
Liek a life insurance per life will be taken with people who's life expectancy is above average, the same occrus here.
People who eat less than average will have less incentive to go
while above average move incentive thus, the "real" average including the adverse selection qualms should be more higher than the average across all consumers.
Louise Bragan has a sideline business of carving candlestick holders. She began by hand carving them with simple tools. On average, it costs $150 in materials, and miscellaneous costs ran $50 to produce 1,300 candlestick holders. She estimates that her labor cost was $200. What was her multifactor productivity to produce candlestick holders
Answer:
3.25 holder/$
Explanation:
Given:
Material cost = $150
Miscellaneous costs = $50
Labor cost = $200
Total production = 1300 candlestick
Multi-factor productivity = Output / (labor cost+ material cost+capital+Miscellaneous costs)Multi-factor productivity = 1300 / ($200+$150+$50)
Multi-factor productivity = 1300 / ($400)
Multi-factor Productivity = 3.25 holder/$
Final answer:
Multifactor productivity is calculated by dividing the total output by the sum of all input costs. In this case, the MFP for Louise Bragan's candlestick holders is 3.25 candlestick holders per dollar.
Explanation:
The student is asking about calculating the multifactor productivity (MFP) for Louise Bragan's candlestick holder business. To find the MFP, we need to divide the total output by the sum of all input costs. Based on the information provided, Louise has an output of 1,300 candlestick holders, and the combined input costs of materials and miscellaneous expenses amounts to $150 + $50, respectively. Additionally, her labor costs amount to $200.
To calculate the multifactor productivity, the formula is:
MFP = Total Output / (Materials + Labor + Miscellaneous Costs)Therefore, the MFP for producing the candlestick holders would be:
MFP = 1,300 candlestick holders / ($150 + $50 + $200)
MFP = 1,300 / $400
MFP = 3.25 candlestick holders per dollar
Elle's Elephant Shop sells giant stuffed elephants for $55 each. Elle incurs $10 of variable costs for each elephant and a total of $700 fixed costs. Assuming Elle will sell 35 elephants this month, which of the following statements are true?a.Profits=$875b.Total costs=$1250c.Total variable costs=$350d.Total sales=$1925
Answer:
875 45x55-700 =875.....
Answer:
total variable costs = $350
total sales = $1,925
profits = $875
Latasha: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course of action to remedy this situation. Jake: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits. Latasha: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively.The disagreement between these economists is most likely due to differences in...
a. scientific judgements
b. perception vs reality
c. values
Answer:
A) scientific judgements
Explanation:
As economists, Latasha and Jake have different scientific (or technical) points of view and they suggest different solutions for the same problem. They both agree about what the problem is, but as social scientists (economists) they believe that different roads will lead us to a better solution.
David works for a small company with a very tight budget. He needs to conduct research but has little to no funds to spend on collecting the data. Choose the types of organizations that can provide David with free, publicly available data:___________
Final answer:
David can access free, publicly available data from government statistics, public opinion polls, and academic research.
Explanation:
David, as a student with a tight budget, there are several types of organizations that can provide you with free, publicly available data for your research:
Government Statistics: National governments, including the United Nations and other international organizations, collect and publish comprehensive social statistics. You can visit their websites or publications catalog for the relevant data.Public Opinion Polls: News and political organizations often conduct opinion polls on various topics. You can find these poll results in archives like ICPSR or through university library subscriptions.Academic Research: Social science researchers gather data as part of their studies, and the results are published in academic literature. You can search the major article databases to find articles containing summary data, and often obtain the complete datasets from the original researchers.If uncollectible accounts are determined by the aging of receivables method to be $1,150, the uncollectible account expense for 2014 would be $350. The balance of the allowance account after the adjusting entry would be?
Answer:
the blaance after the adjusting entry will be of 1,150
as the aging method determinates the allowance based on accounts receivables the amount of 1,150 is the amount we should get at year-end
Explanation:
When the allowance is determinate there are two types of method:
those who when calculate give the amount of the adjustment:
percentage of sale
percentage of credit sale
That's because those are calcualte base on a flow.
and those who give the amount after adjustment and the adjustment is made to reach that amount:
aging method
percentage of account receivable
These are calcualte based on the "stock" of accounts receivables
Mars Inc., a San Diego–based advertising agency, offers various services, such as sales promotion, marketing research, package design, direct marketing, and publicity as well as planning, creation, and advertising production. In this scenario, Mars is an example of a(n):
Answer:
Full service agency
Explanation:
A full service advertizing agency offers a lot of effective options to its principal to promote its product and acts in the best interest of the principal.
Such marketing agencies manages marketing and advertising operations of the companies and earn a mutually agreed fees. There are a lot of services that the company can offer to businesses to promotes its products and some these are adressed in the question as well. Usually the services offered also includes marketing through the internet which costs less than advertising on the radio, etc.
Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country A) total employment is greater.B) total consumption of goods is greater.C) wages are higher. D) total welfare is greater.
Answer:
The correct answer is option B.
Explanation:
Comparative advantage refers to the situation when a nation or individual is able to produce a good or service at a comparatively lower opportunity cost. The nation is said to specialize in the good or service it can produce at a lower opportunity cost.
Trade through specialization helps both the nation involved in the trade to consume more. Each nation produces more of the good it specializes in and exchanges it for the good it does not specializes in.
In this way, both of them are able to consume beyond their production possibility curves.
Which statement is correct?
1. A portfolio that contains at least 30 diverse individual securities will have a beta of 1.0.
2. Any portfolio that is correctly valued will have a beta of 1.0.
3. A portfolio that has a beta of 1.12 will lie to the left of the market portfolio on a security market line graph.
4. A risk-free security plots at the origin on a security market line graph. An underpriced security will plot above the security market line.
Answer:
An underpriced security will plot above the security market line.
Explanation:
A security market line is plotted from capital asset pricing model(CAPM) equation that shows relationship between return of a stock and beta coefficient. An underpriced security means that it is sold below its intrinsic value hence its rate of return is higher than the return calculated by CAPM. Since the existing rate of return is higher, it will plot on the right side of the security market line which means it's above it.