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
Elena L [17]
4 years ago
10

Your estimate of the market risk premium is 9​%. The​ risk-free rate of return is 3.7​% and General Motors has a beta of 1.7. Ac

cording to the Capital Asset Pricing Model​ (CAPM), what is its expected​ return?
Business
1 answer:
densk [106]4 years ago
7 0

Answer:

19%

Explanation:

The market risk premium is 9%

The risk free rate of return is 3.7%

General motors have a beta of 1.7

Therefore, using the capital asset pticing model the expected return can be calculated as follows

= 3.7% + 1.7×9%

= 3.7% + 15.3%

= 19%

Hence the expected return is 19%

You might be interested in
On receiving a client's bank cut-off statement, an auditor most likely would trace
aleksandrvk [35]

Answer:

B. Prior-year checks listed in the cut-off statement to the year-end outstanding checklist.

Explanation:

Bank cutoff statement can be regarded as bank statement that is produced as of a date which is seen as date that is subsequent to the date of the balance sheet. At a point in time, this date would be the one that will give permission for most of outstanding checks to clear the bank at the year-end. Cutoff bank statement is utilized in verifying reconciling items on the bank statement which been Mailed directly to the auditor. One of the purpose of cutoff bank statements is in verification of reconciling items on the year-end bank reconciliation of clients which comes with evidence that it can't be accessible to the client. It should be noted that On receiving a client's bank cut-off statement, an auditor most likely would trace Prior-year checks listed in the cut-off statement to the year-end outstanding checklist.

5 0
3 years ago
You are a sales director for a company and have noticed employees are showing up towork dressed inappropriately. customers have
pochemuha
You could say something like "From this day forth all staff in the in-house sales department and <span>the traveling sales department. All men must wear suit and tie, and all women must be dressed in jeans and a long sleeve shirt!?"</span>
8 0
3 years ago
I need help with some questions. Please, real answers only.
ss7ja [257]
What might be a consideration in deciding where to buy something MasterCard

What advertising technique involves the use of "positive words without actually really making any guarantee Endorsements
5 0
4 years ago
Read 2 more answers
A local coffee shop is hoping to make use of its excess restaurant capacity in the evenings by experimenting with selling beer a
Natasha_Volkova [10]

Answer:

-The forgone revenues that could be earned by renting the coffee shop out for other events during evening hours

- The costs involved with the increased usage of utilities, such as electricity and gas, during evening hours

- Training costs for new and existing employees on beer and wine serving procedures

Explanation:

Cost such as cost of landscaping the lawn outside and the cost of purchasing wine and beer to serve to customers are costs that tend to be incurred from operating the coffee shop, regardless of whether the beer and wine experiment is undertaken which is why these costs are not among the hidden costs of the coffee shop decision.

Therefore any cost which is not taken into account and which as well varies with the consequences of a decision is what we called HIDDEN COST.

Hence Costs such as increased utility usage due to the increased numbers of hours of operation, forgone revenues of renting out the space of the coffee shop and the costs of training new and existing employees in how to serve beer and wine are all costs that is been incurred due to the decision to extend hours and serve beer and wine.

8 0
3 years ago
Consider the actions of the Fed in response to the Great Recession. Which of the following scenarios should the Fed be worried a
Naily [24]

Answer:

The correct answer is letter "B": Increasing the money supply could decrease aggregate demand.

Explanation:

The Aggregate Demand is a macroeconomic term describing the total demand in an economy for all goods and services at any given price level in a given period. As such, aggregate demand is the demand for the gross domestic product of a country. The relationship between the price level and the goods and services provided is inversely proportional which implies that the price level rises, the goods and services will have less demand and vice versa.  

In that case, if the money supply increases so will the price levels but the goods and services provided will see a dropdown so will the aggregate demand.

8 0
3 years ago
Read 2 more answers
Other questions:
  • University Company produces collegiate apparel. From its accounting records, it prepares the following schedule and financial st
    15·1 answer
  • A cash advance is _____.
    7·1 answer
  • Which of the following is a reason to purchase bonds
    5·1 answer
  • Net income for the year was $45,500. accounts receivable increased $5,500, and account payable increased by $11,200. under the i
    12·1 answer
  • How can you establish rapport during your first meeting with guest ?
    14·1 answer
  • True or False: Living expenses aren't considered startup costs.
    6·2 answers
  • Hewlett-Packard founders David Packard and William Hewlett strived to create a close-knit organizational culture that gave a lot
    15·1 answer
  • Namembe is trying to get his financial records organized. He has several monthly credit card statements. Where is the MOST logic
    14·1 answer
  • Country a specializes in the production of copper and produces it more efficiently than any other country. It buys wheat, which
    8·1 answer
  • Which, if any, of the following taxes are regressive (rather than progressive)? a.state general sales tax b.federal gift tax c.f
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!