SML and CML Comparison The beta coefficient of an asset can be expressed as a function of the asset's correlation with the market as follows: b i = rho I m sigma i/sigma M a. Substitute this expression for beta into the Security Market Line (SML), equation below. SML: ri = rRF + (rm - rRF)bi = rRF + (RMM)bi This results in an alternative form of the SML. b. Compare your answer to part a with the Capital Market Line (CML), equation below. CML: gamma p = gamma RF + (gamma M^-gamma RF/sigma M) sigma p What similarities are observed? What conclusions can be drawn?

Fanning books buys books and magazines directly from publishers and distributes them to grocery stores. the wholesaler expects to purchase the following inventory: april may june required purchases (on account) $ 111,000 $ 131,000 $ 143,000 fanning books accountant prepared the following schedule of cash payments for inventory purchases. fanning books suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase. required complete the schedule of cash payments for inventory purchases by filling in the missing amounts. determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.

Explain the relationship between consumers and producers in economic growth and activity

Beagle autos is known for its affordable and reliable brand of consumer vehicles. because its shareholders expect to see an improved rate of growth in the coming years, beagle's executives have decided to diversify the company's range of products so that at least 40 percent of the firm's revenue is generated by new business units. however, the company's resources, capabilities, and competencies are limited to producing other forms of motorized vehicles, such as motorcycles and all-terrain vehicles (atvs). which type of corporate diversification strategy should beagle pursue?