Answer:
B; it offers an expected excess return of 1.8%
Explanation:
Here are the options :
A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%
to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Stock A = 5% + 1.2(9% - 5%) = 9.8%
Stock B = 5% + 1.8(9% - 5%) = 12.20%
The next step is to determine the excess return
stated expected return - calculated expected return = excess return
Stock A's excess return = 10% - 9.8% - 0.2%
Stock B's excess return = 14 - 12.20 = 1.8%
Security B would be considered because it has a higher excess return
The answer would be : B. China
Japan has a 4.92 trillion Dollars of Gross Domestic Products
United states has a 16.77 trillion dollars worth of Gross Domestic Products
and
Russia has a 2.097 trillion dollars of Gross Domestic Products
That leave China as the correct answer
Answer:
Stratified random sample
Explanation:
Stratified random sample -
It is also known as quota random sampling and proportional random sampling .
It refers to the process of sampling , where the complete data or population is distributed into smaller sub - groups , known as the strata .
The distribution of the strata is done on the basis of certain factors like age , gender , education qualification , etc. , there by making the sampling process easier .
Hence , from the given information of the question ,
The correct answer is stratified random sampling .
Answer: $28.30
Explanation:
Given the following :
Expected Dividend = $1.70
Earning from share sale at year end = $30
Expected rate of return on investment = 12%
Maximum price of stock :
(Earning from share + expected Dividend) / (1 + return rate)
(30 + 1.70) / ( 1 + 12%)
(30 + 1.70) / (1 + 0.12)
(31.70) / (1.12)
= $28.303571
= $28.30
Answer:
12.34%
Explanation:
initial outlay = -$1,875,000
NCF year 1 = $415,350
NCF year 2 = $415,350
NCF year 3 = $415,350
NCF year 4 = $415,350
NCF year 5 = $415,350
NCF year 6 = $415,350
NCF year 7 = $415,350
using a financial calculator or an excel spreadsheet, IRR = 12.3.4%
the internal rate of return is the discount rate at which a project's NPV = 0
