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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.

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Alona [7]

Answer:

not satisfying customer needs on critical factors.

Explanation:

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On the other hand Germany supplied Japan the specification of cars that they wanted.

American car manufacturers will be blamed for not satisfying customer needs on critical factor of right hand drive cars.

7 0
3 years ago
Which of the following is included in the cost of constructing a building?
Sloan [31]

Answer:

The correct answer is (A)

Explanation:

Construction business is one of the difficult and risky businesses to do. There are many costs involved while constructing a building.  Insurance cost during construction is important to take care of third party injuries, and it also provides financial coverage regarding property damage. In a construction business, a company is only allowed to start construction after they cover their insurance cost.

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3 years ago
The process of assigning meaningful authority and responsibility to managers and employees lower in the hierarchy is called:
Fudgin [204]
The answer is C. Delegation.
Delegation is the process of <span>assigning meaningful authority and responsibility to managers and employees lower in the hierarchy. Managers needs to delegate tasks to their people so they can be able to develop leaders in her/his team.</span>
4 0
3 years ago
Royal Teas, a U.K.-based company employing just 30 people worldwide, generates $1.5 million in revenues of which 60 percent come
enot [183]

Answer:

B. mini-multinational firm.

Explanation:

Based on the information provided within the question it can be said that the Royal Teas company is most likely classified as a mini-multinational firm. This term refers to a firm that has about 100 employees or less and has operations in various different foreign companies worldwide. Which seems to be the case with Royal Teas since they have only 30 employees worldwide and have operations in Asian Countries, UK and other locations.

7 0
3 years ago
Read 2 more answers
Tax rates for propietorships, partnerships, and llcs __________ with the passage of the tax cuts and jobs act of 2017.
Andreyy89

Tax rates for proprietorships, partnerships, and LLCs changed with the passage of the tax cuts and the jobs act of 2017.

<h3>What are the tax cut and job act 2017?</h3>

Deductions, depreciation, expensing, tax credits, and other business-related tax items have been altered as a result of the Tax Cuts and Jobs Act ("TCJA"). Business owners can use this side-by-side comparison to comprehend the changes and make appropriate plans.

Some TCJA provisions that apply to individual taxpayers may also have an impact on corporate taxes. Reviewing the revisions to the individual tax code will help businesses and self-employed people understand how these provisions may affect their own business position.

For regular updates on tax reform, check IRS.gov/taxreform. Businesses can learn more about the provisions below and access the most recent information at Tax Reform Provisions that Affect Businesses.

To know more about the Tax cuts and job act, visit:

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<h3 />

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