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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%

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Answer: $6

Explanation:

Total production of oranges= 4

Total production of candy bars=10

Each orange sells for=$0.25

Total market value of orange production=price × quantity

=$0.25×4

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Each candy bar sells for= $0.50

Total market value of candy bar production=price of candy bar × quantity of candy bar

=$0.50 × 10

=$5

The economy produces oranges and candy bars.

The total market value of production in the economy= Total market value of Orange production + Total market value of candy bar production

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=$6

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2 years ago
What's the difference between product and brand?
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Carlos sources the wood he needs from various lumber manufacturers and uses a distributor to get his products to the retail stores for sale. the suppliers of the wood, the distributor, and the retail stores are all part of a <u>Supply channel</u>

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<h3><u>What are the supply lines?</u></h3>
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Explanation:

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Income statement is prepared on accrual basis, hence, these expenses will be recognized in the current period and matched with revenues generated.

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