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
What is the total cost of a $95. 00 item with a sales tax of 6%?.
serg [7]

The item has total cost paid after sales tax is $100.7.

The total cost for an item is the selling price that is paid after the addition of tax. The tax is the percent amount paid on the item over the selling price.

<h3>Computation for the total cost of the item</h3>

The cost of the item, <em>c</em> = $95

The percent tax added to the sale is, <em>t</em>=6%

The amount of tax paid is given as:

\text{ Amount}=c\;\times\;\dfrac{t}{100}\\\\ \text {Amount}=95\;\times\;\dfrac{6}{100}\\\\ \text {Amount}=5.7

The amount of tax paid on the item is $5.7.

The total cost of the item is given as:

\rm Total \;cost=\textit c\;+\;tax\\\\Total\;cost=95\;+\;5.7\\\\Total\;cost=100.7

The total cost paid for the item after sales tax is $100.7.

Learn more about tax, here:

brainly.com/question/1362871

3 0
2 years ago
Paul began his speech as follows: They called Lou Gehrig the iron horse. The tireless worker played an astounding 2,130 consecut
Tatiana [17]

Answer:

relating the topic to the audience

Explanation:

Based on the scenario being described within the question it can be said that to gain attention and interest Paul related the topic to the audience. Paul did this by comparing Lou Gehrig to the audiences daily lives at school. By doing this it is catching the audiences attention which in term causes them to be interested in the rest of the speech that Paul is giving.

7 0
3 years ago
Concepts for Analysis 24-3 (Essay) Presented below are three independent situations.
Helga [31]

Answer:1. Make provision for warranty claims.

2. Disclosure of contingent liability

3. No cost should be recorded.

Explanation:

Warranty is an assurance made by firms to make good any agreed loss that is incurred by the customers in usage of goods and services whiting the period of the warranty. Since an estimation can be made based on firms history of sales a provision has to be made for possible warranty.

Since it's only probably that a loss will be Incurred by the firm by going into the contract and the financial statement has not been issue the firm should made a contingent liability disclosure in the report.

The self insurance is not a contract with a third party, in this vein no cost will be accrued until the loss is actually suffered.

6 0
3 years ago
What is an incentive
Anit [1.1K]
A thing that motivates or encourages someone to do something
4 0
3 years ago
Read 2 more answers
Marine Midland Bank sent market researchers door-to-door in the neighborhoods surrounding its branch banks. Each researcher want
leva [86]

Answer: Individual interviews

Explanation: An individual interview can be seen as an experimental method of acquiring information from an original source to gather non-numerical information with a small number of respondents to discuss in detail their viewpoints on a specific idea, program or circumstance.

Here, the Marine Midland Bank sent out their researchers to discuss with the head of each household in the community the reason for not checking accounts and credit cards with the bank. It can be carried out in 15-60 minutes.

8 0
3 years ago
Other questions:
  • Renfroe Corporation is considering the purchase of a machine that would cost $22,712 and would have a useful life of 5 years. Th
    8·1 answer
  • Yvette Bradbury is an account representative at Commerce Savings Bank, earning $45,600 annually, paid semimonthly. She contribut
    10·1 answer
  • A company just starting in business purchased three merchandise inventory items at the following prices. March 2, $150; March 7,
    14·1 answer
  • Which of the following statements is true of semiglobalization?
    5·1 answer
  • Being undecided on what to do with $100,000 just received on F's policy, decides to leave the proceeds on deposit with the insur
    13·1 answer
  • Which of the following is/are required to report on business segments? I. Publicly-traded enterprises II. Not-for-profit enterpr
    14·1 answer
  • why do people hold bonds rather than larger savings accounts or checking account balances? under what circumstances might they c
    15·1 answer
  • Creative Sound Systems sold investments, land, and its own common stock for $31 million, $15.1 million, and $40.2 million, respe
    5·1 answer
  • Paul agrees to sell his clothing store to Michael and, as part of the sale, to execute a covenant not to compete promising not t
    15·1 answer
  • If in the short run, firms in monopolistic competition _________, new firms will enter the market.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!