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]
3 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]3 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 December​ 31, Year​ 10, Brown Company changed its inventory valuation method from the​ weighted-average method to FIFO for fi
Butoxors [25]

Answer: Overstatement of profit by $8000

Explanation:

The change in an accounting method of valuing stock which results in decrease in the value of stock will increase the profit when compared to the period before the method that decrease the stock was used. To effect the change a debit charge will be made to the retained earnings and a credit charge to the stock account to reduce the value.

6 0
3 years ago
Global Communications has a 7 percent, semiannual coupon bond outstanding with a current market price of $1,023.46. The bond has
Alex787 [66]

Answer:

Years to Maturity = 12.53

Explanation:

Coupon Rate = 7.00%

Coupon Periods = 2

Perpetuity Value = 1,041.67

Price = 1,023.46

Discounted Perpetuity Value = 455.17

Yield to Maturity = 6.72%

Annuity Value = 586.49

Discounted Face Value = 436.97

Semiannual Coupon = 35.00

Price 1,023.46

Periods to Maturity = 25.05

Semiannual Yield = 3.36%

Years to Maturity = 12.53

3 0
3 years ago
Explain the characteristics strengths, weaknesses of quantitative​
Arte-miy333 [17]

hope it helps...

PLEASE MARK AS BRAINLIEST

5 0
3 years ago
Read 2 more answers
The following information was taken from Baxter Department Store's financial statements:
vodka [1.7K]

Answer:

500,000÷  200,000 = 2.5

Explanation:

inventory turnover is calculated as

cost of goods sold ÷ Average inventory

From the information of Baxter department store's financial statement, cost of goods sold can be calculated as

Opening inventory + purchases - closing inventory  

100,000 + 700,000 - 300,000 = 500,000

cost of goods sold = 500,000

Average stock is calculated as opening inventory + closing inventory ÷ 2

100,000 + 300,000 ÷ 2 = 200,000  

Average inventory = 200,000

Therefore inventory turnover = 500,000÷  200,000 = 2.5

7 0
3 years ago
Corporate executives at LikeReal, Inc. decide to compete in the remote model airplane industry by making the largest model plane
steposvetlana [31]

Answer:

Business strategy

Explanation:

The idea to compete in a remote model air-plane industry is a part of the business strategy of like real.  This is a business strategy because the decision has been made to compete in an industry to gain more customers and to improve their share in the market.  It will also help like real to strengthen their performance and organisational goals.

5 0
3 years ago
Other questions:
  • Which of the following is exchange traded?
    7·1 answer
  • Select the correct definition of the term "comparative advantage." the ability to produce a good or service at a lower opportuni
    15·1 answer
  • Which benefit is shared by both Monopolies and Oligopolies?
    9·1 answer
  • Which statement bestexplains the association between a risk factor and the development of adisease?
    5·1 answer
  • ​Nathan's budget line measures tacos on the x​-axis and side salads on the y​-axis. When the price of a taco​ rises, Nathan's bu
    12·1 answer
  • Uming a 360-day year, when a $15,217, 90-day, 12% interest-bearing note payable matures, total payme
    13·1 answer
  • Since the colonial period, the census has revealed
    13·1 answer
  • he manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indica
    13·1 answer
  • Question 6 of 20
    12·1 answer
  • e-business is the exchange of goods and services among individuals, typically facilitated by a third party.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!