Answer: Provides a risk return trade off in which risk is measured in terms of beta (A)
Explanation:
The Capital Asset Pricing Model (CAPM) describes the relationship that exist between systematic risk and the expected return for assets, particularly stocks. The Capital Asset Pricing Model is widely used in finance for pricing risky securities and also for generating expected returns for an asset given the cost of capital and the risk of those assets.
The Capital Asset Pricing Model Formula is:
Expected Return= Risk-Free Rate+Beta( Market Return – Risk Free Rate).
For example, if the risk free rate is 10%, the market return is 15%, and the stock's beta is 3, then the expected return on the stock would be 25%
= 10% + 3 (15% – 10%)
= 10% + 3(5%)
= 10% + 15%
= 25%
Answer:
yes that's so true,it helps a lot in business
Answer:
$11,940
Explanation:
The computation of the paying amount is shown below:
= Sale value of the equipment - discount charges + freight charges
= $12,000 - $360 + $300
= $11,940
The discount charge is
= Sale value of the equipment × discount rate
= $12,000 × 3%
= $360
We simply deduct the discount and added the freight charges to the sale value of the equipment so that the actual value could arrive
Answer:
a) $10,000
b) $12
c) The grower has a loss at the shutdown price
d) New firms will enter the market in the long run
Explanation:
Find the given attachments
Answer:
Direct material price variance $ 21,000 unfavorable
Explanation:
<em>A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.
</em>
$
6,5000 pounds should have cost (6500× $12) 78,000
but did cost <u>99,600</u>
Direct material price variance <u>21,000 </u>unfavorable
