Answer: 1.9%
Explanation:
First derive the Market return as this is needed in the Capital Asset Pricing Model by using the same model:
Required return = Risk free rate + Beta * ( market return - Risk free rate)
Using stock Y:
12.4% = Risk free rate + 1 * (market return - Risk free rate)
12.4% = Rf + market return - Rf
Market return = 12.4%
Use this to calculate the Risk free rate:
Stock Z:
8.2% = Rf + 0.6 * (12.4% - Rf)
8.2% = Rf + 7.44% - 0.6Rf
Rf - 0.6Rf = 8.2% - 7.44%
0.4Rf = 0.76%
Rf = 0.76% / 0.4
= 1.9%
What ever they are comfortable paying.
More information is required to answer this problem properly.
Answer:
No, the triangular numbers are not a direct variation. There is not a constant of variation between a number and its position in the sequence. The ratios of the numbers to their positions are not equal. Also, the points (1, 1), (2, 3), (3, 6), and so on, do not lie on a line.
Explanation:
this is correct on edge
