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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

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If you were a manager who made sure that rewards were distributed to your employees fairly based on their performance and that e
ale4655 [162]

Answer:

A)equity theory.

Explanation:

From the question, we were informed that, if I'm a manager who made sure that rewards were distributed to my employees fairly based on their performance and that each employee clearly understood the basis for his or her own pay, In this case, I would be using equity theory. Equity theory, which is also known as Adams equity theory explained that a fair balance should exist between the input of an employee and the output, the input in this sense could be employee's skills, hardwork, the output as well could be the salaries, recognition given to employees. It should be noted that Equity theory allows to know how fair is the distribution of resources to relational partners.

6 0
3 years ago
Which one of the following accounts will have a credit balance?
Tems11 [23]

Answer:

Common Stock

Explanation:

We know that

The debit sections track assets, expenses side, and dividend while revenues, stockholder equity, and the liability side are reported in the credit section.

So in the given question, the common stock has credit balance whereas the dividend, supplies, and the salary expense has a debit balance

By proper posting of accounts in the correct columns, the total of debit and credit columns would be matched.

3 0
3 years ago
For the case of a perfectly price-discriminating monopolist (ppdm), producer surplus can be calculated as:
Marrrta [24]

Answer:

Explanation:

Producer surplus can be defined as the difference between how much a person can receive by selling a good at the market price versus how much a person would be willing to accept for the given quantity of good.

The Perfect Price Discrimination (1st degree price discrimination) will occur when an organization charges a different price for every unit consumed.

Producer surplus is formally given as PS = TR( q ppdm ) 0 q ppdm MC(q)dq

Where TR is the Total Revenue

For total cost and the definite integral of marginal cost over the range of output, we find that PS = TR( q ppdm ) TC( q ppdm ).

That is the sum of the consumer surplus and producer surplus is the total gains from trade.

8 0
4 years ago
What is meant by management being multidimensional​
REY [17]

Answer:

In a multidimensional organization, the firm uses different criteria on several levels, reported at the same time, to track its performance.

Explanation:

Managers in a multidimensional organization have common goals. The management process prioritizes decision making

7 0
3 years ago
Read 2 more answers
The Gorman Group issued $970,000 of 13% bonds on June 30, 2021, for $1,042,973. The bonds were dated on June 30 and mature on Ju
omeli [17]

Answer:

Entries are given below

Explanation:

Cash should be recorded as an asset on the issuance of bonds and bonds should be credited as it is a liability for the company. Interest expense should be debited on a semiannual basis

June 30, 2021 ( issuance of bonds)

                                                          DEBIT          CREDIT

Cash                                                 1,042,973

Bonds payable                                                     970,000

Premium on bonds payable                                 72,973

December 31, 2021 ( interest expense)

                                                            DEBIT          CREDIT

Interest Expense                               62,578

(1,042,973 x 12% x 6/12)

Premium on bonds payable               472    

Cash                                                                          63,050

(970,000 x 13% x 6/12)

June 30, 2022 (interest expense)

                                                           DEBIT            CREDIT

Interest Expense                               62,550

(1,042,973-472) x 12% x 6/12)

Premium on bonds payable               500    

Cash                                                                             63,050

(970,000 x 13% x 6/12)

5 0
4 years ago
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