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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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4 years ago

Read 2 more answers

Classifying costs as materials, labor, or factory overhead OBJ. 2 Indicate whether each of the following costs of an automobile

ExtremeBDS [4]

Answer:

a. Wheels are direct material cost as are essential for the automobile to complete, as the cars one of the main equipment is wheels as it will not work without wheels.

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3 years ago

You have been hired as a marketing director for Terraineous, a hiking apparel and footwear company. Your most urgent problem is

Sphinxa [80]

Answer:

The answer is: People variable

Explanation:

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4 years ago

You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock

lukranit [14]

Answer:

Beta= 1.1065

Explanation:

Giving the following formula:

Proportions:

35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock T.

Betas:

0.83, 1.21, 1.22, and 1.39,

To calculate the beta of the portfolio, we need to use the following formula:

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)

Beta= (0.35*0.83) + (0.25*1.21) + (0.25*1.22) + (1.15*1.39)

Beta= 1.1065

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3 years ago

Whispering Winds Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable $ 0 Accumulat

alisha [4.7K]

Question Completion:

Record the adjustments.

Answer:

Whispering Winds Company

1. Debit Interest Expense $464

Credit Interest Payable $464

To record the interest expense for 4 months.

2. Debit Supplies Expense $1,798

Credit Supplies $1,798

To record supplies expense for the year.

3. Debit Depreciation Expense - Equipment $1,160

Credit Accumulated Depreciation - Equipment $1,160

To record the depreciation expense for the year.

4. Debit Insurance Expense $1,421

Credit Prepaid Insurance $1,421

To record insurance expense for 7 months.

5. Debit Unearned Revenue $8,700

Credit Service Revenue $8,700

To record service revenue earned for December.

6. Debit Accounts Receivable $4,872

Credit Service Revenue $4,872

To record service revenue earned for December.

7. Debit Salaries Expense $6,264

Credit Salaries Payable $6,264

To accrue unpaid salaries for 3 days.

Explanation:

a) Data and Calculations:

Account balances on December 31, 2022:

Accounts Receivable $ 0

Accumulated Depreciation-Equipment 0

Equipment 8,120

Interest Payable 0

Notes Payable 11,600

Prepaid Insurance 2,436

Salaries and Wages Payable 0

Supplies 2,842

Unearned Service Revenue 34,800

b) Interest expense = $11,600 * 12% * 4/12

c) Supplies expense = $2,842 - 1,044 = $1,798

d) Insurance expense = $2,436 * 7/12 = $1,421

e) Service Revenue = $34,800 * 1/4 = $8,700 with the balance as Deferred Revenue.

f) Salaries expense for 3 days = $10,440 * 3/5 = $6,264

8 0

3 years ago