1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kvasek [131]
3 years ago
8

The Security Market Line (SML) shows the relationship between stocks' required rates of return (measured on the vertical axis) a

nd their betas (measured on the horizontal axis). The vertical axis intercept is the required rate of return on a riskless asset, and the required rate of return associated with b = 1.0 is the required rate of return on "the market." The difference between the required rate of return on the market and that on the riskless asset (rM – rRF) is defined as the "market risk premium." The steeper the SML, the larger the market risk premium, and the greater the average investor's aversion to risk. True or false?
Business
1 answer:
natka813 [3]3 years ago
5 0

Answer:

True

Explanation:

The reason is that the straight line equation is used to illustrate the relation between the rate of return and the beta factor and is given as under:

Y = a + bX

Here

a = Rf

B = Risk premium = Rm - Rf

X = Beta Factor

So this means the security market line is the graphical presentation of capital asset pricing model and illustrates why the increase in beta factor increases the required rate of return, the reason is that the the overall required return Y of the investment will start increasing with the increase in the beta factor.

So the statement is true.

You might be interested in
Plzzz help (use attached photo)
myrzilka [38]

Answer:

Academic achievements. ...

Relevant coursework. ...

Clubs. ...

Sports and musical instruments. ...

Volunteer work. ...

Languages. ...

Computer skills. ...

Any kind of employment at all.

Explanation:

7 0
3 years ago
Using the following information: 12/31/17 Accounts receivable $526000 Allowance (35700 ) Cash realizable value $490300 During 20
yawa3891 [41]

Answer:

The change in the cash realizable value from the balance 12/31/17 to 12/31/18 was $37,840 increase.

Explanation:

Cash realizable value of accounts receivable is simply the amount that is deemed recoverable after factoring the portion that is uncollectible.

The effects of the transactions during the year are as follows:

Sales on account:

Debit Accounts receivable                            $145,400

Credit Sales revenue                                     $145,400

<em>(To recognize the sales on account)</em>

Collections on account:

Debit Cash                                                      $100,000

Credit Accounts receivable                           $100,000

<em>(To recognize collections on account)</em>

Write-off:

Debit Allowance for doubtful accounts            $3,960

Credit Accounts receivable                               $3,960

<em>(To recognize write-off of outstanding accounts receivable)</em>

Therefore, the effects of the foregoing journals on Accounts receivable are: $526,000 + $145,400 - $100,000 - $3,960 = $567,440.

As at 12/31/18, cash realizable value would be $567,440 - $39,300 = $528,140. The change in the cash realizable value from the balance at 12/31/17 to 12/31/18 was therefore $528,140 - $490,300 = $37,840 (increase).

7 0
3 years ago
"Americans in this decade are less likely than in the prior decade to say they want to lose weight, with the average dropping fr
Scilla [17]

Answer a. Estimate a population proportion.

Explanation:

A population proportion denotes a specific attribute of a population measured in percentage, the above analysis is on losing weight by the populace.

A mean only refers to the average of the population without reference to a particular quality.

The analysis is not testing a claim but it's only making reference to earlier findings on the population. A claim would have given us a specific quality which the population has been predicted or established to adhere to.

4 0
3 years ago
Philippa is getting ready to start preparing the income statement for General Graders, a company that manufactures graders used
melamori03 [73]

The financial document that Philippa has already prepared is the cost of goods manufactured schedule.

<h3>What is a financial document?</h3>

It should be noted that a financial document simply means a document that's necessary in an organization to carry out transactions.

In this case, since Philippa is getting ready to start preparing the income statement for General Graders, the financial document that Philippa has already prepared is the cost of goods manufactured schedule.

Learn more about financial documents on:

brainly.com/question/2806276

5 0
2 years ago
The quantity demanded of cereal increased from 1,350 to 1,700 when the price of milk decreased from $2.05 to $1.65. What is the
Iteru [2.4K]

Answer:

-1.33

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good X to changes in price of good Y.

Cross price elasticity of demand = percentage change in quantity demanded of good X / percentage change in price of good Y

Percentage change in quantity demanded = (1700 / 1350) - 1 = 0.2593 = 25.93%

Percentage change in price = (1.65 / 2.05) - 1 = -0.1951 = -19.51%

25.93% / -19.51% = -1.33

I hope my answer helps you

8 0
3 years ago
Other questions:
  • A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 e
    9·1 answer
  • In 2018, X Company sold 6,800 units of its only product for $36.10 each. Unit costs were as follows: Variable manufacturing $14.
    10·1 answer
  • Stockholders' equity:________A. Is equal to assets minus liabilities B. Represents the interest of the owners in the assets of a
    15·1 answer
  • Software (such as typical tax preparation software) which in essence interviews the user is following which user interface metap
    6·1 answer
  • When responding to questions face-to-face, how should you organize your response?
    13·1 answer
  • An airline company is interested in the opinions of their frequent flyer customers about their proposed new routes.​ Specificall
    14·1 answer
  • Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods
    6·1 answer
  • Pursuant to a complete liquidation, Oriole Corporation distributes to its shareholders land held for three years as an investmen
    6·1 answer
  • Amy transfers property with a tax basis of $970 and a fair market value of $650 to a corporation in exchange for stock with a fa
    6·1 answer
  • porter’s competitive strategies outline four different generic corporate strategies. this activity is important because knowledg
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!