1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
VladimirAG [237]
2 years ago
15

An underpriced stock provides an expected return that is __________ the required return based on the capital asset pricing model

(CAPM).
Business
1 answer:
8_murik_8 [283]2 years ago
3 0

An underpriced stock provides an expected return that is less than the required return based on the capital asset pricing model (CAPM).

<h3>What is capital asset pricing model?</h3>

The capital asset pricing model (CAPM)  is a tool that helps to show how financial markets price securities is moving and help to  determine expected returns on capital investments.

In this case, An underpriced stock provides an expected return that is less than the required return based on the capital asset pricing model (CAPM).

Learn more about capital asset pricing model  at:

brainly.com/question/17219340

#SPJ1

You might be interested in
On July 1, 2019, Sunland Company purchased new equipment for $80,000. Its estimated useful life was 5 years with a $10,000 salva
Paraphin [41]

Answer:

On December 31,2019

Depreciation expense Dr $7,000

          To Accumulated depreciation $7,000

(Being the depreciation expense is recorded)

Explanation:

The journal entry is shown below;

On December 31,2019

Depreciation expense Dr $7,000

          To Accumulated depreciation $7,000

(Being the depreciation expense is recorded)

The computation is shown below:

= ($80,000 - $10,000) ÷ 5 years × 6 months ÷ 12 months

= $7,000

For recording this we debited the depreciation expense as it increased the expenses and decreased the assets so the accumulated depreciation is credited

And, the six months is taken from July 1 to December 31

     

4 0
3 years ago
An agreement to exchange dollar bank deposits for euro bank deposits in one month is a:_________
koban [17]

An agreement to exchange dollar bank deposits for euro bank deposits in one month is a <u>forward transaction.</u>

<h3>What is a forward contract?</h3>

A tailored agreement between two parties to purchase or sell an item at a predetermined price at a later date is known as a forward contract. Although its non-standardized nature makes it particularly suitable for hedging, a forward contract can be utilized for speculating or hedging.

A forward contract can be tailored to a commodity, amount, and delivery date, unlike typical futures contracts. Grain, precious metals, natural gas, oil, and even chicken are examples of traded commodities. Settlement of a forward contract may take place in cash or by delivery.

Forward contracts are categorized as over-the-counter (OTC) instruments because they are not traded on a centralized exchange. While the OTC nature of these products makes it simpler to adjust terms, the absence of a centralized clearinghouse also increases the chance of default.

Thus, it is a forward transaction that is used to exchange dollar bank deposits for euro bank deposits in one month.

For more information on <u>Forward Transaction</u>, refer to the given link:

brainly.com/question/28238316

#SPJ4

8 0
1 year ago
An acrostic poem describing the word peculiar
castortr0y [4]
Huh?? What are you taking abouttttt LOL
6 0
3 years ago
True or False: Through the use permission marketing programs, customers are allowed to select the type of communications compani
Ulleksa [173]

The given statement is true.

Customers may pick the kind of communications that businesses can have with them via usage permission marketing programs, and they can even opt to be fully removed from both email and conventional mailing lists.

Clickstream selling is the practice of making recommendations for additional purchases on websites based on previously purchased products. Businesses put a lot of effort into lowering the percentage of current customers who leave and never come back.

Consumers now have more influence over communication thanks to the emergence of new technologies. Websites monitor visitors using tools like cookies, pixels, and fingerprinting to analyze browsing habits and deliver tailored information.

To learn more about Clickstream selling  visit:brainly.com/question/28273918

#SPJ4

5 0
1 year ago
A difference between book income and tax income that __________ (increases / decreases) taxable income in the current year but w
LuckyWell [14K]

Answer:

Temporary difference

Explanation:

The reason is that the temporary difference is due to allowable and disallowable expenses and returns for some period which in later years equals to the allowable or disallowable incomes and expenses. This is all because of the temporary differences.

5 0
3 years ago
Other questions:
  • In 3–5 sentences, describe how a consumer can use a cost-benefit analysis to decide between buying a concert ticket or buying a
    13·1 answer
  • How long does it take to get a bio degree?
    12·1 answer
  • Leah and santana have been requested to print a daily report of scheduled activities. their supervisor needs to know if each par
    13·1 answer
  • On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative
    15·1 answer
  • Kinnamont Company manufactures farming equipment that includes navigational systems as part of the standard equipment package an
    15·1 answer
  • If you consider the Loanable Funds Theory, does the current interest rate make sense when you consider things such as the nation
    7·1 answer
  • Which of the following best describes a dividend? ​
    10·1 answer
  • Dan and another manager Susie are arguing about how their company has set up the material requisition slips. For their company a
    15·2 answers
  • According to our Lecture, which of the following strategic concepts allow firms to achieve their missions?A) productivity, effic
    12·1 answer
  • A question beginning with "how" or "why" is usually what type of research question?
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!