Answer:
r or expected rate of return = 0.13 or 13%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
r = 0.04 + 1.80 * (0.09 - 0.04)
r or expected rate of return = 0.13 or 13%
<span><span>1.In Internet Explorer, click Tools, click Internet Options, and then click the Securitytab.
</span><span>2.In the Select a Web content zone to specify its current security settings box, click Trusted Sites, and then click Sites.
</span><span>3.If you want to add sites that do not require an encrypted channel, click to clear the Require server verification (https:) for all sites in this zone check box.
</span><span>4.In the Add this Web site to the zone box, type the URL of a site that you trust, and then click Add.
</span>5.Repeat these steps for each site that you want to add to the zone.
<span>6.Click OK two times to accept the changes and return to Internet Explorer.</span></span>
When Brad John talks about the fact that he is going to have to create different financial plans depending on the amount of business the company is bringing in, he is referring to a cash flow plan. It estimates short and long-term expenses against projected incoming cash. This is a form of anticipation through creating cushion intended for unexpected expenses.
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I hope this helps and have a wonderful day filled with joy!!
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