I believe the answer to this question is : False
Expected return of the stock is greater than 12%.
Using formula, Risk free rate + beta (market risk rate - risk free rate)\
= 2% + 2.0 (7%-2%)
= 13.6 - 0.4* risk premium
Risk premium of a stock is greater than 12%.
A stock's total return takes into account both capital gains and losses as well as dividend income, as opposed to a stock's nominal return, which only displays its price movement. In addition to considering the actual rate of return, investors should consider their ability to withstand the risk involved with a given investment. An investment's return on investment (ROI) provides a general indication of its profitability. The return on investment (ROI) is calculated by subtracting the investment's initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.
Note that the full question is:
If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the stock?
A. less than 12%.
B. 12%.
C. greater than 12%.
D. cannot be determined.
To learn more about returns: brainly.com/question/24301559
#SPJ4
As Accenture explores an end-to-end business flow that has reconciliation between multiple parties system, we would be able to uncover shared state.
Any variable, object, or memory area that resides in a shared scope is referred to as a shared states. Accenture Blockchain and Multiparty Systems specializes in supply chain, digital identity and financial services.
Multiparty systems creates a shared data infrastructure between an individual and an organization that drives efficiency and creates a new business and revenue models. they include blockchain, distributed ledger, distributed database, tokenization and a variety of other technologies and capabilities.
To learn more about Accenture here
brainly.com/question/28169672
#SPJ4
Well mainly extemporaneous speeches can be hard, finding the right words without advanced notice may not be for every speaker. But trust me! No need to worry..... :) The extemporaneous speech is a perfect balance!!!!! This speech involves the speaker's use of notes and some embellishment to deliver a speech. To clear this up, a speaker who uses this method would have note cards or prompts that guide him from point to point, but he uses his own words as he goes along. What makes this different than an impromptu speech is that he has a loose guideline for his speech. He did not memorize anything....... he just used cues to know where to go next.
There are advantages but there are disadvantages to this type of speech sadly..... :( For one, the audience will think you are a genius. You used few notes and appeared to know everything about the topic. But this is not something that can be done quickly. The same fact finding and research used for other types of speeches must be used here. The speaker also must rehearse this speech for timing, rhythm and flow. Now, if shooting from the hip is not your style, you may want to consider reading your speech!!!! :) But ya. I hope this is better. XD sorry about that.
Answer:
Their income after 20 years would be 72,550 dollars.
Explanation:
The income after 20 years can easily de determin by using compounding
formula
Future Value = Present Value (1 + I)^ 20
= 90,000 (1 + 0.03)^ 20
= 162,550 dollars
Income can be determing by subtracting Pv from Fv i.e
Income = 162,550 - 90,000 = 72,550
Calculation on excel sheet
A B C D
1 90,000 1.03 = A1 * 1.03 = C1-A1
2 = D1 1.03 = A2 * 1.03 = C2-A2
20 = D19 1.03 = A20 * 1.03 = A20 - C20
* In work sheet colunm D will show income on investment.
