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sleet_krkn [62]
1 year ago
9

Here are some characteristics of two portfolios, the market index, and the risk-free asset. Expected Return Beta Standard Deviat

ion Portfolio A 11% 0.8 10% Portfolio B 14% 1.5 31% Market index 12% 1 20% T-bills 6% 0 0% Required: a-1. Calculate the return predicted by CAPM for a portfolio with a beta of 0.8. (Round your answer to 1 decimal place.) a-2. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. b. If instead you could invest only in bills and one of these portfolios, which would you choose
Business
1 answer:
SVETLANKA909090 [29]1 year ago
3 0

A. 1. Return predicted by capital asset pricing model for portfolio of .8

= (Risk free return+(Market return- risk free rate)B

B= Beta.

=(.06+(-12-06),8)

=(.06+,048)

= 10.80%.

A.2. Capital Asset pricing model return for portfolio of Beta of 1.5

=(.06+(-12-.06)1.5)

= 15.00%.

A.3. PORTFOLIO A- Portfolio A will be selected for investment because expected return is higher than required return and the portfolio is currently undervalued.

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The balance sheet of a corporation reports ______. only the debts of the business and its owners only the results of the busines
grandymaker [24]

Answer:

only the results of the business' activities

Explanation:

 balance sheet is among the three main financial statements prepared by a corporation. It reports the financial positions of the business by showing the value of assets, liabilities, and the shareholder's equity at any point in time. Therefore, a balance sheet shows the net worth of the corporation.

The preparation of the balance sheet follows the accounting equation of assets equals liabilities plus shareholder equity. On one side, the balance sheet reports the assets and liabilities and equity on the other.  In other words, the balance sheets indicate how the assets of a business are financed. It does not report on the personal activities of business owners.

6 0
3 years ago
in an audit of inventories, an auditor would least likely verify that all inventory owned by the client is on hand at the time o
Kruka [31]

In an audit of inventories, an auditor would least likely verify that all inventory owned by the client is on hand at the time of the count.

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An audit is an "impartial exam of monetary statistics of any entity, whether or not profit oriented or now not, no matter its size or legal form whilst such an exam is performed so one can explicit an opinion thereon.”

An auditor is a person or a firm appointed with the aid of an employer to execute an audit. to act as an auditor, someone should be licensed by means of the regulatory authority of accounting and auditing or possess sure detailed qualifications.

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6 0
2 years ago
The approved detail design resulting from the __________ serves as a basis for making the decision to begin production. Systems
wel

Answer: Critical Design Review

Explanation:

A Critical Design Review is referred to as a review that's fine in order o ensure that a system can be able to move into fabrication, and test and also ensure that the stated performance requirements are met.

The approved detail design resulting from the critical design review serves as a basis for making the decision to begin production.

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2 years ago
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7 0
1 year ago
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9966 [12]

Answer:

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