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Len [333]
1 year ago
13

An investment has a beta of 0.9. the risk-free rate of return is 8 percent, while the return on the market portfolio of assets i

s 14 percent. the asset's required rate of return is ________.
Business
1 answer:
mestny [16]1 year ago
5 0

An investment has a beta of 0.9. the risk-free rate of return is 8 percent, while the return on the market portfolio of assets is 14 percent. the asset's required rate of return is <u> 13.4%</u>

Assets required rate of return = Rf + (Rm-Rf) X beta

= 8% + (14%-8%) X 0.9

= 13.4%

In financial accounting, an asset is a resource owned or controlled by a company or entity. Anything (tangible or intangible) that can be used to create positive economic value. Assets represent the value of assets that can be converted into cash (although cash itself is also considered an asset). A company's balance sheet records the monetary value of the company's assets. This includes the money and other valuables belonging to individuals or businesses.

Assets can be divided into two main classes: tangible assets and intangible assets. Tangible assets include various subclasses such as current assets and fixed assets. Current assets include cash, inventories, and accounts receivable, while fixed assets include land, buildings, and equipment. Intangible assets are non-physical resources and rights that are valuable to a company because they give it a market advantage. Intangible assets include financial assets such as goodwill, copyrights, trademarks, patents, computer programs, financial investments, bonds, and stocks.

Learn more about Assets  here: brainly.com/question/25746199

#SPJ4

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Vehicles from which country use the international registration letters WG?
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Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. Calculate Juniper’s
julsineya [31]

Answer:

The break even units of clock is 370 units.

Explanation:

Juniper Enterprises sells handmade clocks.

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The price of per unit of clock is $24.

The contribution margin per unit

= Sales - Variable cost

= $24 - $6

= $18

Break even units

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= \frac{6,660}{18}

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6 0
3 years ago
All of the following stockholders' equity accounts of a foreign subsidiary are translated at historical exchange rates except:?
Citrus2011 [14]

Answer:

a.retained earnings.

Explanation:

All of the below mentioned accounts are acquired at historical cost and cash benefits do not change for them, as because they are acquired on cost, that is  there carrying value is cost and related to amount for which it was acquired, further retained earnings includes the balance of current earnings added, therefore as per rules retained earnings are not converted, on historical conversion rate, and will be converted using current conversion rates of currency.

Final Answer

a.retained earnings.

8 0
3 years ago
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