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Kaylis [27]
1 year ago
5

American Paper Company has a beta of 1.2. The risk-free rate is 6 percent and the required return on the market is 14 percent. T

he required rate of return on the security is
Business
1 answer:
Lynna [10]1 year ago
3 0

American Paper Company has a beta of 1.2. The risk-free rate is 6 percent and the required return on the market is 14 percent. The required rate of return on the security is:

  • -15.6%
  • -13.2%
  • -22.0%
  • -22.8%

<h3>What Is the Security Market Line?</h3>

The security market line (SML) is a line drawn on a chart that serves as a graphical representation of the capital asset pricing model (CAPM)—which shows different levels of systematic, or market risk, of various marketable securities, plotted against the expected return of the entire market at any given time.

Its Also known as the "characteristic line," the SML is a visualization of the CAPM, where the x-axis of the chart represents risk (in terms of beta), and the y-axis of the chart represents expected return. The market risk premium of a given security is determined by where it is plotted on the chart relative to the SML

The formula for plotting the SML is:

Required return = risk-free rate of return + beta (market return - risk-free rate of return)

Learn more about SML on:

brainly.com/question/15877803

#SPJ4

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Great Kids Co. began providing day care for the children of employees of a large corporation on January 15 for an agreed monthly
nirvana33 [79]

Answer:

A. A credit to Child Care Fees Earned of $4,500.

Explanation:

The journal entry to record this given transaction is shown below:

Cash A/c Dr $4,500

       To Child Care Fees Earned A/c $4,500

(Being the fees earned is recorded)

Since the payment is received that means cash balance is increased so we debited the cash account and credited the child care fees earned account.

The monthly fee is $9,000 but we have to compute for 15 days, so it would be

= $9,000 ÷ 2

= $4,500

7 0
3 years ago
Look at the following picture and think about the organizational structure. Your task is to advise someone on how that organizat
Veseljchak [2.6K]

Answer:

top down management

Explanation:

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4 0
2 years ago
if the fed lowers the discount rate, the money supply multiple choice question. does not change increases decreases
MAXImum [283]

The money, if somehow the Fed lowers their discount rate, deciding on monetary policy, open market operations, and purchases

<h3>What does the term "monetary" mean? </h3>

of or pertaining to money or the systems used to supply and move money across an economy. a crime done with the intent to profit. a nation's monetary strategy. monetarily.

<h3>Does monetary refer to money? </h3>

The term "monetary" refers to money, particularly the total quantity of money in such a nation. [Business] To prevent inflation, several nations tighten their monetary policies. Synonyms: economic, financial, money, capital More words for "monetary"

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brainly.com/question/1068495

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5 0
11 months ago
Once the production is in performance mode, who is the most important person in the show? the protagonist the director the stage
Darya [45]
<span>Once the production is in performance mode, the most important person in the show is the stage manager.
</span>The stage manager organizes and coordinates the theatrical production. He/she <span> schedules and runs rehearsals and </span>organizes the production and coordinates the communications between various personnel.
5 0
3 years ago
Suppose a relatively poor country receives foreign aid to be used for education.​ However, a large portion of the money is stole
makkiz [27]

Answer:

True

Explanation:

There are two reason which suggest that action will generate greater inequality.

1. some amount is stolen by government official thus fund is getting allocated to person who are already self-sufficient hence causing inequality

2. even left portion of fund is not allocated proportionally to all the area and thereby increasing the inequality.

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