When creating video marketing content on a budget, what is the first thing you should consider doing?

According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock of 12, and a ris

Neporo4naja [7]

The question is incomplete. Here is the complete question

According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock beta of 1.2, and a risk-free interest rate of 4%?

Answer:

8%

Explanation:

The expected return on security is 13.6%

The stock beta is 1.2

The risk free interest rate is 1.4

Therefore, using the CAMP , the market risk premium can be calculated as follows

13.6%= 4% + 1.2×MRP

13.6%-4%= 1.2MRP

9.6%=1.2MRP

MRP= 9.6/1.2

MRP= 8%

Hence the market risk premium is 8%

6 0

3 years ago

Balance Sheet The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $705,555 Offi

insens350 [35]

Answer:

Assets  Liabilities

Current Assets Acount Payable 17,640

Cash 222,485 Equity

Account receivable 49,390 Common Stock 135,000

Supplies 8,465 Retained Earnings 353,700

Total Current Assets 280,340 Total Equity 488,700

Land 226,000

Total Assets 506,340 Toal Liab+ SE 506,340

Explanation:

RE will be calculate using the accounting equation as is quicker than calculate net income and do the RE statement

Assets = Liab + Equity

Where: Equity = Common Stock + RE

506,340 = 17,640 + 135,000 + RE

RE = 506,340 - 17,640 - 135,000 = 353,700

3 0

3 years ago

Next week, Super Discount Airlines has a fight from New York to Los Angeles that will be booked to capacity. The airline knows f

ss7ja [257]

Answer:

The cost of underestimating demand is considered a revenue loss that arises due to cancellation of flight costing $125. Hence, cost of underestimating the demand is, $C_{u}$ = $125 .

The cost of overestimating the demand is known as rewards. For example. free round trip ticket worth $250. Hence. cost of overestimating the demand. $C_{o}$ = $250 .

Denote the optimal probability of tickets not being sold by P. The expression is shown below:

$P = \frac{C_{u} }{C_{o} + C_{u} }$

$P = \frac{125}{250 + 125}$

P = 0.3333

Hence. the optimal probability that the tickets are not being sold is 0.33.

Apply the formula, NORMSINV (0.3333) in the Excel spreadsheet

The value of z is obtained as -0.4308. The negative value of z indicates that the number of seats to be overbooked must be less than an average of 25.

As per the stated question, an average of 25 customers cancel or do not show for the flight. Also the standard deviation is 15.

Calculate the number of seats by which company SD should overbook the flight.

= Value of z x Standard deviation

= -0.4308 x (15)

= -6.462

Subtract the value. 6 from the average customers that do not show up for the flight.

25 - 6 = 19 seats

Hence, the airlines should overbook the flight by 19 seats .

5 0

3 years ago

Which country has a comparative advantage in the production of baseballs? explain.

bazaltina [42]

The US has a comparative advantage in the production of baseballs.

A baseball is a ball utilized in the sport of the identical call. The ball consists of a rubber or cork center wrapped in yarn and blanketed with white herbal horsehide or cowhide, or a synthetic composite leather-based. A law baseball is nine to 9¼ inches (229 to 235 mm) in circumference (just slightly under 3 inches (7.6 cm) in diameter), with a weight of 5 to five¼ oz. (142 to 149 g).[1] A baseball is sure together by using 108 hand-woven stitches through the cowhide leather-based.

The leather cover is generally formed from saddle-fashioned portions stitched together, normally with red-dyed thread. That stitching performs a giant position inside the trajectory of a thrown baseball due to the drag as a result of the interaction between the sewing and the air. Controlling the orientation of the stitches and the rate of the ball's rotation lets in a pitcher affect the conduct of the pitched ball in unique ways. normally hired pitches to consist of the curveball, the slider, the 2-seam fastball, the four-seam fastball, the sinker, the cutter, and the changeup.

Learn more about Baseball here:- brainly.com/question/857914

#SPJ4

5 0

2 years ago

A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change

Ierofanga [76]

Answer:

b. −1.79 percent

Explanation:

You can solve this using a financial calculator. I'm using TI BA II plus ;

First, find Price of the bond if YTM = 5.5%. Since it is semi-annual, adjust the YTM and total duration;

N = 13*2 = 26

I/Y = 5.5%/2 = 2.75%

PMT = (6%/2)*1000 = 30

FV = 1,000

CPT PV = $1046.01

Next, find Price of the bond if YTM = 5.7%.

N = 13*2 = 26

I/Y = 5.7%/2 = 2.85%

PMT = (6%/2)*1000 = 30

FV = 1,000

CPT PV = $1027.28

Percentage change =[ (New price- Old price)/Old price] *100

$=\frac{1027.28-1046.01}{1046.01} *100\\ \\ = -0.017906 *100$

= -1.79%

6 0

3 years ago