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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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Factors in determining the elasticity of demand for a good
Whitepunk [10]

Answer:

1.  Nature of commodity

2.  Availability of substitutes

3.  Income level

4. Postponement of consumption

5. Number of uses

6. Share in total Expenditure

7. Time period

Explanation:

8 0
3 years ago
Professional skepticism related to detecting possible fraud involves the validation of information through probing questions. cr
Gnom [1K]

Answer:

True

Explanation:

Professional skepticism is an examining mindset which makes you conscious of the situations that may suggest possible error or scam as well as a critical evaluation of audit facts.

6 0
3 years ago
Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of
Pepsi [2]
Mike brought 100 shares costing $53 each.
Total costs of shares= 100*53
=$5300

He got dividends of $1.45 per share. A dividend is money that is earnt back from a share.
Total dividend amount = 1.45*100
=$145

I'm assuming that Mike sold his shares at the end of the year. He sells for $60 each.
Total sales amount=60*100
=$6000

The rate of return in this instance can be defined as the amount of money made back from a share.

Rate of return= total earnings/ costs

Total costs= $5300
Total earnings=$6145

6145/5300=1.1594
=15.9%

Hope this helps! :)
4 0
3 years ago
Which employees typically work in an office environment within schools? Check all that apply.
LekaFEV [45]

Answer:

b. School Secretary

e. Librarian

f. Teacher

Explanation:

A school secretary, Librarian, and the teacher are full-time employees in a school. They spend most of their day in school and have offices within the school environment.

School Psychologist, Instructional Designer, and tutor work a few hours in a school. They are unlikely to have offices in the school.

5 0
3 years ago
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Gurl I am new here too so anything that you learned plz share I am in imitate help

7 0
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