Answer:
<u>13.2%</u>
Explanation:
As per Capital Asset Pricing Model (CAPM),
Expected Rate Of Return =
wherein, = Risk free rate of return on treasury bonds
B= Beta , which represents the degree of sensitivity of security return to the market return.
= Return on market portfolio
Thus, Expected rate of return of security X = 6 + 1.2(12 - 6)
= 13.2%
CAPM model is used for calculating expected rate of return. As per the model, the investors expect a risk premium represented by excess of rate of return of market portfolio over risk free rate , in addition for the risk free rate of return.
The risk premium serves as a compensation for investing in risky securities instead of risk free securities.
Answer:
2. feasibility study
Explanation:
A feasibility study is done to analyse whether for example a school should or not expand the building open new sections and so on. the study also evaluates for labor and work in progress. It is an analysis of a proposed project to determine whether it is feasible and should go further. Feasibility is further divided into different categories such as economical , technical, operational etc. It aims to check the competitiveness of the business in the market and check its economic growth.
Answer:
$11,000
Explanation:
Based on the information given What will be the MAXIMUM AMOUNT OF THE CHARITABLE CONTRIBUTION ALLOWABLE as an itemized deduction on Deet's income tax return will be the amount of $11,000 which represent the amount the art value that Deet donated to the local art museum which was valued at $11,000.
Therefore the maximum amount of the charitable contribution allowable as an itemized deduction on Deet's income tax return is $11,000