Answer:
Capm= RF+B(RM-RF)
Capm required return Stock A= 0.04+(0.85*0.06)=0.091=9.1%
9.1% is more than the expected 8 percent return which means that the investor should not buy this security as expected return is less than required return
Capm required return Stock B=0.04+(0.95*0.06)=0.097=9.7%
9.7% is more than the expected 9 percent return which means that the investor should not buy this security as expected return is less than required return
Capm required return Stock C=0.04+(1.2*0.06)=0.112=11.2%
11.2 percent is more than the expected 10 percent return which means that the investor should not buy this security as expected return is less than required return
Capm required return Stock D=0.04+(1.35*0.06)=0.121=12.1%
12.1% is less than the 14 percent expected return which means that the investor should buy this security as expected return is more than required return.
Capm required return Stock E=0.04+(0.5*0.06)=0.07=7%
7 percent is more than the expected 6 percent return which means that the investor should not buy this security as expected return is less than required return
Explanation:
Answer:
option (b) 12.77 percent
Explanation:
Data provided in the question:
Expected return = 15.72% = 0.1572
Beta = 1.33
Risk free rate = 3.82% = 0.0382
Inflation rate = 2.95% = 0.0295
Now,
Expected return = Risk free rate + Beta × (Expected market return - Risk free rate)
or
0.1572 = 0.0382 + 1.33 × ( Expected market return - 0.0382 )
or
0.119 = 1.33 × ( Expected market return - 0.0382 )
or
Expected market return - 0.0382 = 0.08947
or
Expected market return = 0.12767
or
Expected market return = 0.12767 × 100% = 12.767% ≈ 12.77%
option (b) 12.77 percent
Answer:
D. Listing, marketing, facilitating transactions, and managing information
Explanation:
The real estate brokers helps in facilitating the following activities:
Listing - They help in listing out the best options for the buyers
Marketing - The brokers representing the developer ( i.e the seller ) markets their product which is the real estate property
Facilitating transactions - They help the buyers and sellers for the ease in transaction by being a mediator between the seller and the buyer.
Managing information - They manage the information related to the products and the information of the buyer so as to have an hassle free transaction.
Answer:
lawyer's computer.
Explanation:
For the economist a stock is capital that can earn income or good that person holds and can sold for a particular price.
In this case the lawyer's computer is a good that the lawyer owns and can be exchanged for money. Also the lawyer can use the computer to help treat court cases thereby earning income.
Answer:
b. Horizontal merger.
Explanation:
Project Repat is merging with a company that produces similar products to its own markets them in similar markets as well, this is an example of a horizontal merger that results in increased synergies between the similar firms and a greater market share opportunity.
Vertical mergers are usually not in the same industry. They would either be with the suppliers of Project Repat or customers who retail Project Repat's products.
Conglomerate is an example of diversification and usually the merging firms have different operations.
There are no information of clashes of any sort within the two merging companies so it is uncertain whether this is a hostile takeover.
Hope that helps.
