Answer:
r = 0.139 or 13.9%
Option e is the correct answer
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
r = 0.04 + 0.9 * (0.15 - 0.04)
r = 0.139 or 13.9%
Set up an equation
[$250 + $401.50 + (Sept expenses)] /3 =$400
solve for x
[651.50 + x] /3= 400
[651.50 + x] /3*3= 400*3
651.50 + x = 1200
-651.50 -651.50
————————————
x = 548.50
So your answer is D.
The average annual risk premium on small-company stocks for the period 1926-2014 was 12.9%
<h3>
What is Risk premium?</h3>
A premium is a proportion of overabundance return that is expected by a person to remunerate being exposed to an expanded degree of risk.
The contributions for every one of these factors and a definitive understanding of the risk premium worth contrasts relying upon the application as made sense of in the accompanying segments.
No matter what the application, the market premium can be unpredictable as both involving factors can be affected free of one another by both repetitive and unexpected changes. This implies that the market premium is dynamic in nature and consistently evolving.
Therefore annual risk premium was as 12.9%.
Learn more about Risk here:
brainly.com/question/27754423
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Answer:
Option c is correct
$245,680
Explanation:
The total manufacturing cost = $737,040.
Units produced = 22,200
Cost per unit before adjustment for absorbed overhead=
=$737,040./22,200 units
=$33.2 per unit
Cost of goods sold before adjustment for overheads
= (cost per unit × units sold)
= $33.2 × 7,400
= $245,680
In the given example above, the favorite tune of college level
forming group that they are considered to belong is the fisk. The fisk forming
group in the college level are famous singers of which they are students who
travel and raises funds for their college.
