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Georgia [21]
2 years ago
8

Mulherin's stock has a beta of 1.23, its required return is 11.75%, and its risk-free rate is 2.30%. What is the required rate o

f return on the market?
Business
1 answer:
vaieri [72.5K]2 years ago
3 0

Required return = Risk-free rate + Beta*(MArket rate- risk-free rate )

11.75=2.3+1.23*(Market rate-2.3)

(11.75-2.3)/1.23=Market rate-2.3

Market rate=(11.75-2.3)/1.23+2.3

Hence the required rate of return on the market would be 9.98%(Approx).

<h3>What is Return in the Share market? How do stocks produce returns?</h3>

A return is the increase in value of a project, investment, or item over time. This increase in value can be expressed as a price increase or a percentage increase. A gain is shown by a positive return, whilst a loss is indicated by a negative return.

As a simple illustration, a company with a 5% dividend yield in relation to its purchase price and a 5% value growth over the first year of ownership would have generated a 10% total return over the course of a year. Both a dollar amount and a percentage can be used to determine total returns.

To learn more about Market Share visit:

brainly.com/question/15298247

#SPJ4

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bearhunter [10]

Answer:

You are looking for a solution to organize your small closet. After visiting the IKEA website you discover the perfect components to make your closet more useful. Marketing just highlighted a benefit for:

You the consumer

Explanation:

Marketing is an aspect of business that can be defined as the act of communicating a company's product information to potential customers with the aim of converting them to loyal customers. In the business world, there is competition for the market share, therefor businesses need to utilize effective strategies that will ensure that they have a bigger share of the market as compared to the competition. Marketing strategies target various audiences that can be beneficial to them.

In our case above, the potential customer had a problem with organizing her closet in such a way that the closet can be more spacious. She decided to visit IKEA which is a multinational group that deals with the selling of ready-to-assemble furniture. The information from the website helped her determine the perfect components to make her closet more useful. The marketing highlighted a benefit for her as a consumer.

8 0
4 years ago
Joy is taking out a car loan which she will pay back with interest. Which option will require her to pay the lowest amount in in
Aleks04 [339]
You didn't give us any options in your question.
4 0
3 years ago
Read 2 more answers
A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and t
SSSSS [86.1K]

Answer:

a. The Geometric average return  is 1.72%

b. The Arithmetic average return is 1.75%

c. The Dollar weighted average return is 2.61%

Explanation:

a) In order to calculate the time-weighted geometric average return we would have to calculate first the Holding period return as follows:

Holding period return = (200 - 190) / 190 = 5.263%

Hence, Geometric average return = (1 + .05263)^(1/3) - 1 = 1.72%

b) To calculate time-weighted arithmetic average return we have to make the following calculation:

Arithmetic average return = 5.263% / 3 = 1.75%

c) To calculate time-weighted arithmetic average return we would have to make the following calculation:

Dollar weighted average return=-190*3 + 200/(1+r) + 200/(1+r)^2 + 200 / (1+r)^3 = 0

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3 years ago
You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compound
Maslowich

Answer:

The retirement fund will last for 33 years and 7 months

Explanation:

We need to solve for time in an ordinary annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  $15,000.00

rate 0.004 (4.8% divide by 12 month)

PV $3,000,000

time n

15,000 \times \frac{1-(1+0.004)^{-n} }{0.004} = 3,000,000\\

we clear for n as much as we can and solve

(1+0.004)^{-n}= 1-\frac{3,000,000\times0.004}{15,000}

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now we use logarithmic properties to solve for n:

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Answer:

The correct answer would be option B, Get information about the benefits they provide to their employees.

Explanation:

When a person applies for a post in an organization, it is better for him to have some useful knowledge about the working and atmosphere of the organization, so that he will be able to answer the questions according to the level of organizational environment. So the best way to have some information about the company is to get information about the benefits they provide to their employees. This will give you an insight into the fact that how they value their employees and how they treat them. For example, if you come to know that they provide medical facilities, over time allowance, day care service for the working moms, provide residence for employees hired from other cities, etc, then you will have an idea that they treat their employees well and there would be a calm and family like atmosphere when you will go to give interview. Other options are the ones which won't be so much helpful in knowing the organizational culture and won't give enough information about the company.

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