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
balandron [24]
3 years ago
15

Calculate the required rate of return for an asset that has a beta of 1.73​, given a​ risk-free rate of 5.3​% and a market retur

n of 9.9​%. b. If investors have become more​ risk-averse due to recent geopolitical​ events, and the market return rises to 12.7​%, what is the required rate of return for the same​ asset?
Business
1 answer:
Mumz [18]3 years ago
5 0

Answer:

 

(a)    13,3%

(b) 18,1%

Explanation:

To calculate the required rate of return for an assets it's necessary to use the CAPM (Capital Asset Pricing Model) model which considers these variables to estimate the required return of an assets, the model states the next:

ER = Rf  +   Bix( ERm - Rf )  

ER : Expected Return of Investment    

Rf : Risk-Free Rate    

Bi : Beta of the Investment    

ERm : Expected Return of the Market    

(Erm-Rf) :    Market Risk Premium    

It tries to explain the relationship between the systematic risk ((Erm-Rf  Market Risk Premium) of the market and the expected returns for assets.

You might be interested in
A variety of colors and shapes forming a large number 5. the number 5 is repeated smaller. to create this piece and convey a des
fiasKO [112]

To create this piece and convey a desired message or feeling, the artist relied mainly on the principles of variety and harmony.

Variety-  Variety is an art principle that adds interest to a work of art. Contrast and juxtaposition are used to create variety. When an artist juxtaposes different visual elements, he or she employs variety. The juxtaposition of straight and curved lines adds interest. Organic shapes interspersed among geometric shapes add variety. The juxtaposition of bright and dull colors adds variety.

Harmony- Harmony is an artistic principle that emphasizes the similarities of separate but related parts to create cohesiveness. It is important to note that harmony is not the same as unity. Harmony, on the other hand, enhances unity in a work of art. Harmony, in particular, uses art elements (color, line, shape, form, value, space, texture) to create a sense of togetherness among otherwise disparate parts.

Learn more about variety & harmony here:

brainly.com/question/8498030

#SPJ4

6 0
2 years ago
Why do you think we "ignore" taxes (like sales and property tax) that fund things we really "like," and instead focus on federal
aivan3 [116]

I think we ignore taxes like sales and property and fund things we really like because if money is put into places that consumers are going to spend money, the government ends up making more long term. Although, the money is then sometimes spent where people don't always agree, it still allows for more money to be generated overtime.

4 0
3 years ago
How might the future economic concerns of other countries differ from those of the United States?
mafiozo [28]

Answer:

The future economic concerns of other countries will differ from those of the United States, mainly according to the degree of economic development of each nation. Thus, for example, countries like Germany or Canada, which have an economic development similar to that of the United States, will have economic and socioeconomic concerns quite similar to the United States (rational use of natural resources, redistribution of income, efficient allocation of public resources, etc.).

On the other hand, less developed nations such as those of Africa, Haiti or Cuba, for example, will have different concerns, such as guaranteeing access to water, food and sanitation for all their inhabitants, or generating foreign investments that provide jobs for their residents.

8 0
4 years ago
During your meeting with your client, Hayden Doyle, you recommended he purchase a personal liability umbrella policy (PLUP). Whi
nataly862011 [7]

Answer:

b. Develop and present financial planning recommendations.

Explanation:

Since in the question it is mentioned that there is a recommendation for buying a personal liability with respect to the umbrella policy so in the steps of the financial planning process, the step that should be considered is to develop & present the recommendation with regard to the financial planning as the financial planning is important than can save your future

hence, the correct option is B.

6 0
3 years ago
Ryan attends a seminar on environmental conservation, and afterward decides to contribute to the conservation of the environment
zheka24 [161]
The answer to the given question above would be the third option. Based on the given scenario above about Ryan who attended a seminar on environmental conservation, what he can do to achieve his objective is to <span> use a compost pile to dispose of food wastes. Hope this helps.</span>
7 0
4 years ago
Read 2 more answers
Other questions:
  • Which type of financial statement should you look at if you want to see a company's profits and losses over a specific period of
    8·2 answers
  • First Simple Bank pays 9.4 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts
    6·1 answer
  • Louise got caught in a cash flow trap and desperately needed money quickly. Unfortunately, she didn't shop around and she went t
    7·2 answers
  • Aron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following in
    7·1 answer
  • Concord Corporation makes and sells widgets. The company is in the process of preparing its selling and administrative expense b
    6·1 answer
  • Community centers, libraries or churches are all places that
    13·1 answer
  • Due to path dependence:_____
    10·1 answer
  • Does anyone know anything on accounting????
    13·1 answer
  • Lederman Manufacturing Corporation, had the following information for production last period: Beginning Work in Process Inventor
    15·1 answer
  • 100 POINTS MICROECONOMICS
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!