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2 years ago

According to the capital asset pricing model, what is the expected return on a security with beta of 1?

Business

1 answer:

Mamont248 [21]2 years ago

6 0

According to the capital asset pricing model, the expected return on a security is the average market return.

A market is a system, institution, process, social relationship, or infrastructure configuration that parties exchange. Although parties can exchange goods and services through barter, most markets rely on sellers offering goods and services to buyers in exchange for money.

A market is a place where buyers and sellers meet to facilitate the exchange or trade of goods and services. A marketplace can be physical, like a retail store, or virtual, like an e-merchant. Other examples include illegal markets, auction markets, and financial markets.

Marketplace, the means by which the exchange of goods and services takes place through contact between buyers and sellers, either directly or through intermediaries or institutions.

Learn more about market here:brainly.com/question/25754149
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A fixed asset with a five-year estimated useful life and no scrap value is sold at the end of the second year of its useful life

JulsSmile [24]

Answer:

B) A gain would be less or a loss would be greater using straight-line depreciation.

Explanation:

In straight line method of depreciation there is a fixed amount of depreciation, and in double declining method the rate is double of straight line method,

Let us take an example,

Cost of asset = $500,000

Selling price at end of 2nd year = $300,000

Straight line depreciation = $100,000 for each year i.e. $500,000/5

Double declining method rate = ($100,000/$500,000) $\times$ 100 $\times$ 2 = 40%

Therefore value at end of second year

Straight line = $500,000 - ($100,000 $\times$ 2 ) = $300,000

Double Declining method = ($500,000 -40%) - 40% = $180,000

In case of sale at $300,000

Profit shall be

Straight line = $300,000 - $300,000 = 0

Double Declining = $300,000 - $180,000 = $120,000

Now, there will be more profit in double declining that is gain is less in straight line and losses would be greater in straight line thus statement B is correct.

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3 years ago

The state of Indiana charges a 6% sales tax on most consumer goods. Grant purchased a generator for $400 and paid an additional

faltersainse [42]

Answer:

the correct answer is

The $400 retail price of the generator.

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3 years ago

Typing, Inc. has been an S corporation since its inception. On July 4, 2019, Typing distributed $50,000 to Jerusha. Her basis in

lisabon 2012 [21]

Answer:

Answer is $15,000

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3 years ago

John's Locomotive Works manufactures a model locomotive. It comes in two versions: a standard (X1) and a deluxe (X2). The locomo

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Answer:

Explanation:

X1 X2 Z

0 0 0

16 0 4,000

0 10 3,500

8 6 4,100

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3 years ago

The government accounting office (gao) announces deep cuts to social security, medicare, and welfare programs. aggregate demand

Alborosie

Aggregate demand will REMAIN THE SAME. Aggregate demand refers to the total demand for goods and services within a particular market in an economy. Social security, medicare and welfare programs are examples of government transfer payments; transfer payments are not meant to be purchased, therefore they have no influence whatsoever on aggregate demand.

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3 years ago

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