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1 year ago

The financial market history shows that the single-index capm fails empirical tests because ____________..

Business

1 answer:

Pachacha [2.7K]1 year ago

7 0

The financial market history shows that too many securities have statistically significant values.

All zeros that occur among any non-0 digits are significant. as an instance, 108.0097 consists of seven significant digits. All zeros which are on the right of a decimal point and added to the left of a non-zero digit are in no way significant. for example, zero.00798 contained three substantial digits.

The CAPM takes into consideration systematic threat (beta), which is neglected by other go-back fashions, such as the dividend bargain model (DDM). Systematic or market threat is an essential variable due to the fact it is unexpected and, for that reason, frequently can not be absolutely mitigated.

The intention of the CAPM formula is to evaluate whether a stock in all fairness is valued while its chance and the time cost of cash are as compared with its anticipated return. In other phrases, it's far viable, via understanding the personal parts of the CAPM, to gauge whether the present-day price of an inventory is consistent with its possibly go back.

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3 years ago

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Many small firms seek to establish a particular niche in the market, realizing that they cannot afford to operate on a larger sc

Karolina [17]

Answer:

Letter A is correct. <u>Fostering competition.</u>

Explanation:

In this case, it is correct to say that small businesses are fostering competition.

Competition in the business world can be defined as a situation where two or more companies that supply products are rivals in the quest to conquer the same market and the same customers.

Large companies often have some dominance and influence over the market, which means that they impose various barriers to market entry by other competing companies, especially if they are micro-companies. In the case of the above question, when there are a large number of small companies looking to establish themselves in a specific niche in the market, due to possible retaliation by large companies, together, they are exerting an influence on the market that promotes competition.

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3 years ago

Jonathan Mfg. adopted a job-costing system. For the current year, budgeted cost driver activity levels for direct labor hours an

Hitman42 [59]

Answer:

C. $ 7,500

Explanation:

Estimated direct labor cost $ 100,000

Estimated direct labor hours 20,000 hours

Predetermined rate per direct labor hours $ 5 per direct labor hour

Actual hours used on a job 1,500 hours

Applied overhead based on the predetermined overhead

rate per direct labor hours

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The information regarding machine hours is not relevant to the requirements of the question.

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3 years ago

Analysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2014 a

Naddika [18.5K]

Answer:

b. Gross Receivable = Net receivable +Allowance

2014 = $306.8 + $13 = $319.80

2013 = $287.3 + $14.5 = $301.8

Allowance as a % of Gross receivable = Allowance / Gross receivable

2014 = $13/319.80 = 0.041 = 4.1%

2013 = $14.5/301.8 = 0.015 = 1.5%

c. Average Net Accounts receivable = (Accounts receivable, net 2014 + Accounts receivable, net 2013) / 2 = ($306.8 + $287.3] / 2 = $297.05

Receivable Turnover = Net credit sales / Average Net Accounts receivable

Receivable Turnover = $2,989 / $297.05

Receivable Turnover = 10.06 Times

d) Cash received in 2014 = Beginning Gross receivables + Net sales - Ending Gross receivables-Adjustment in allowance (Write-off 2014)

Cash received in 2014 = $301.8 + $2,989 - $319.8 - $4.3

Cash received in 2014 = $2,966.7

Increase in customer deposits = $16 - 13.5 = $2.5

Total Cash received from customers in 2014 = Cash received in 2014 + Increase in customer deposits

Total Cash received from customers in 2014 = $2,966.7 + $2.5

Total Cash received from customers in 2014 = $2969.20

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3 years ago

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const2013 [10]

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Explanation:

One of the advantages of opening a limited company be it private or public, is the additional knowledge that the other shareholders would bring on board.

In the case of a private company, the new shareholders would be from various backgrounds and would have knowledge on how to grow the business and in the case of a public company, the Board of Directors are usually drawn from various industries and so will put their experience from those industries into the company thereby giving it an edge.

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3 years ago