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
Oksana_A [137]
2 years ago
10

Security a has an expected rate of return of 0.12 and a beta of 1.2. the market expected rate of return is 0.10, and the risk-fr

ee rate is 0.03. the alpha of the stock is:________
Business
1 answer:
ivanzaharov [21]2 years ago
3 0

The alpha of the stock is <u>6.6%</u>.

Alpha is also a degree of risk. With an alpha of - 15 means, the investment changed into far too risky given the go back. An alpha of 0 suggests that an asset has earned a return commensurate with the risk. Alpha of more than 0 means an investment outperformed, after adjusting for volatility. The process to calculate the alpha of the stock is: 0.12-[0.33+1.2(0.10+0.33)]= 0.066 = 0.066 * 100 = 6.6%

The expected return on monetary funding is the predicted fee of its return. it is a measure of the middle of the distribution of the random variable this is the return.

The risk-free rate is the rate of return offered by funding that consists of zero threat. Each investment asset contains a few levels of risk but is small, so the risk-free fee is something of a theoretical idea. In exercise, it is considered to be the interest rate paid on brief-term government debt.

Learn more about risk-free rates here brainly.com/question/19568670

#SPJ4

You might be interested in
Qucation
RUDIKE [14]

As a result of the record amount of grapes, the equilibrium price decreases while the equilibrium quantity increases. Please find attached the required graph.

<h3>What is the impact of the record amount of grapes?</h3>

If there is a record amount of grapes produced, the amount of wine produced would increase. This is because grapes are an input used in the production of wine.

As a result, the supply of wine would increase. This would lead to a shift to the right of the supply curve for wine. the equilibrium price decreases while the equilibrium quantity increases.

To learn more about supply curves, please check: brainly.com/question/26073189

3 0
2 years ago
Which type of credit is used for utilities? installment credit secured credit card service credit unsecured credit card
balandron [24]
The type of credit that is used for utilities is : Service credit

With service credit you can make it easier to pay utility bills such as gas, electricity, water, phone services, etc under one account

hope this helps
5 0
3 years ago
11. King Arthur is going into battle and he needs to decide how many more swords and helmets he should buy. The tables show the
Kazeer [188]
Can show the tables?
7 0
2 years ago
For most accounting positions, the minimum educational requirement is
Archy [21]
It’s c I had this problem a week ago
3 0
3 years ago
What is the net change in non-cash working capital that would appear on the cash flow statement given the following: i) Increase
VMariaS [17]

Based on the cash and noncash transactions, the net change in non-cash working capital would be -$325.

<h3>How would the non-cash working capital change?</h3>

This can be found as:

= Increase in accounts receivables - Decrease in inventories - Decrease in prepaid expenses - Increase in PPE + Increase in accounts payable

Solving gives:

= 800 - 350 - 225 - 950 + 400

= -$325

The rest of the question is:

v) Increase in PP&E of $950

vi) Increase in accounts payable of $400

Find out more on net working capital at brainly.com/question/26214959.

#SPJ1

6 0
2 years ago
Other questions:
  • With recent reports of identity theft, mr. Jones, the ceo of a construction company, is concerned about his employees' privacy,
    5·1 answer
  • A branding strategy in which a firm uses the same brand for all or most of its products is called __________ branding.
    13·1 answer
  • You must pick one of two​ wagers, for an outcome based on flipping a fair coin. 1. You win ​$440 if it comes up heads and lose ​
    6·1 answer
  • You are a stringer for your local newspaper, covering local sports events. For a special football spread, you have taken video f
    11·1 answer
  • Luma Inc. has provided the following data concerning one of the products in its standard cost system.Col1 Inputs Direct material
    13·1 answer
  • A unit of ownership in a corporation is a
    7·1 answer
  • Driving skills are a basic qualification of
    13·2 answers
  • What information does a supply schedule provide?
    10·1 answer
  • Cattle breeds in Philippines​
    13·1 answer
  • the excluding organization, the passive club, and token acceptance symbolic equity, substantial equity, and the including organi
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!