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
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

You might be interested in
The fact that corporate travelers are less price sensitive than most leisure travelers because the corporation pays for the trav
Readme [11.4K]

Answer:

The correct answer is D. shared cost effect

Explanation:

The shared cost effect refers to the reduction in price sensitivity of a customer created through the perception that part of the purchase price is paid for by a third party of the firm itself.

5 0
3 years ago
According to the Techstar’s video describing entrepreneurial journeys, and their efforts to support entrepreneurship, what is th
chubhunter [2.5K]

Answer:

Champion

Explanation:

According to Techstars, the final stage of an entrepreneur's journey is champion. This represents start-ups that have a chieved great success like Google, and they are championing the enterpreneur's journey by working with enterpreneurs at earlier stages.

The initial stages of enterpreneur's journey is: inspire, discovery, founder, startup, scale, and finally champion.

5 0
3 years ago
How was Samsung able to go from a copycat brand to an innovation leader?
xeze [42]
They still are a bad brand no offense
6 0
3 years ago
M/b ratios typically exceed -select- , which means that investors are willing to pay more for stocks than their accounting book
skad [1K]

M/b ratios typically exceed one, which means that investors are willing to pay more for stocks than their accounting book values.

The Book value is the carrying amount of the company's assets minus the receivables (such as company liabilities) that exceed common stock. The term book value comes from the accounting practice of accounting for assets at their original costs.

The Book value of a company is total assets minus total liabilities. Total assets and total liabilities are included on the balance sheet of the annual and quarterly reports.

Book value refers to the value of the asset reported on the balance sheet, that is, the value of the asset after the accumulated depreciation has been recorded. Every company owns multiple assets. Therefore, every business also has a book value, which is the present value of the asset minus the liability or accrued debt.

Learn more about investors here: brainly.com/question/690070

#SPJ4

4 0
2 years ago
User add controls to a form
mixas84 [53]
Do you have a question about it?
5 0
3 years ago
Read 2 more answers
Other questions:
  • Prepare the journal entry to record Zende Company’s issuance of 66,000 shares of $5 par value common stock assuming the shares s
    11·1 answer
  • Your recently widowed grandma says, “i feel granddaddy's presence all the time. he's actually guiding me to do the right thing.”
    9·1 answer
  • Calvin knew his small local hardware store could not compete on price with the big-box discounters so he began offering classes
    13·1 answer
  • When a company needs precise answers about the effects of various proposed marketing actions on important outcomes, what type of
    15·1 answer
  • 50. Regarding product mix, brand name is a part of A. place. B. price. C. product. D. promotion.
    7·1 answer
  • ​"The application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify
    13·1 answer
  • Your company is experiencing difficult times and must lay off 52 workers, many of whom have been with the company for a number o
    12·1 answer
  • Pelzer Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have a 8% annual coupon rate and were issued
    11·1 answer
  • Choose all that apply. Select all the types of retirement accounts. IRA Mutual fund IDA 401(k) 403(b) CD
    13·1 answer
  • Pls help me lol
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!