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andrey2020 [161]
1 year ago
5

What would be the expected rate of return for each company, according to the capital asset pricing model (capm)?

Business
1 answer:
VladimirAG [237]1 year ago
4 0

Formula for calculating the expected rate of return according to capital asset pricing model is as follows:

Expected return of the investment = the risk free rate + the beta or we can say it as the risk of the investment * the expected rate of  return on the market – the risk free rate , the difference between the two i.e expected rate of return and the risk free rate  is known as  the market risk premium.

For every additional increment of risk incurred, the expected return should increase propotionately.

If any security is found to give a higher return in relation to the additional risk incurred, then the CAPM model shows that it is a buying opportunity.

Despite shortcomings of the CAPM model , this model is very popular for valuing securities.

To know more about CAPM model here:

brainly.com/question/28208903

#SPJ4

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Northwestern Data Systems has adopted a new organizational approach with regard to information flow, ensuring that employees hav
bija089 [108]

Answer:

neither she nor her supervisor has any demonstrable reason to access such information.

Explanation:

When security measures are introduced in information system access in an organisation, an individual is limited to only a defined set of data.

Access to data outside one's normal job role requires a request for addition of such access.

In the given instance Northwestern Data Systems has adopted a new organizational approach that ensures employees have access to the only data they need.

Stacy, an administrative assistant requests a report regarding disciplinary action on a manager outside her department.

She will not be able to get it because she should normally not be able to discipline a manager.

So she can't access it because neither she nor her supervisor has any demonstrable reason to access such information.

3 0
3 years ago
As a consequence of the problem of scarcity:
lara31 [8.8K]

Answer:

The correct answer is letter "B": Individuals have to make choices from among alternatives.

Explanation:

Scarcity is the basic economic problem by which individuals have unlimited needs but count on limited resources to satisfy them. As a result, people must make trade-offs by which they sacrifice part of the satisfaction of one need to cover part of another need.

Scarcity pushes individuals to optimize the allocation of their resources to maximize the utility of the goods or services people use to satisfy their needs.

7 0
3 years ago
The argument for import protection in developing countries to bring about industrialization differs from the infant-industry arg
Zigmanuir [339]

Answer:

D) it presumes there will be economic gains even if output does not become internationally competitive

Explanation:

The argument for import protection in developing countries to bring about industrialization differs from the infant-industry argument in that it presumes there will be economic gains even if the output does not become internationally competitive. International competitiveness is a step of the relative cost of services/goods from a nation. Countries that can provide a similar quality of goods at a cheaper cost are stated to be extra competitive.

4 0
3 years ago
Shidan Apartments purchased an apartment building to rent to university students on November 18, 2017. The following costs were
Masteriza [31]

Answer:

$351,000

Explanation:

The computation of the amount of an asset is as follows;

Purchase price of the building $220,000

Purchase price of the land $100,000

Transfer taxes $10,000

Attorney and real estate agent's fees $15,000

Repave the parking lot $6,000

Cost of apartment $351,000

hence, the cost of an apartment is $351,000

3 0
3 years ago
Kimberly is excited about a high-end vacuum cleaner she purchased. She can't wait to show her husband how well the vacuum cleane
lesantik [10]

Answer:

C) affective involvement

Explanation:

Affective or emotional involvement takes place when customers build emotional connections and have deep feelings about a certain product or service.

Kimberly's excitement about her new vacuum cleaner can be better understood as a consequence of her feelings toward her family than what the vacuum cleaner really does. She is excited because she feels she has done something good for her family.

7 0
3 years ago
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