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musickatia [10]
3 years ago
13

Stock A has a beta of 1.7 and has the same reward-to-risk ratio as stock B. Stock B has a beta of .8 and an expected return of 1

2 percent. What is the expected return on stock A if the risk-free rate is 4.5 percent?
Business
1 answer:
lord [1]3 years ago
4 0

Answer:

20.43%

Explanation:

Given;

Beta of stock A = 1.7

Beta of the stock B = 0.8

Expected return on stock B = 12%

Risk free rate of stock A = Risk free rate of Stock B = 4.5%   (Since same reward-to-risk ratio)

Now,

The expected return of stock B

= Risk free rate + (Beta × Market Risk premium)

on substituting the respective values, we get

12% = 4.5% + (0.8 × Market Risk premium )

or

Market Risk premium = 9.375%

Also,

The expected return of stock A

= 4.5% + (1.7 × 9.375)

or

= 20.43%

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Answer:

B) $7

Explanation:

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Consumer surplus = Willing to pay - Market price

For Austin, The consumer surplus = $10 - $6 = $4

For Erin, The consumer surplus = $9 - $6 = $3

So, the total consumer surplus = $4 + $3 = $7

Simply we deduct the market price from the willing to pay so that the consumer surplus can be computed

8 0
3 years ago
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cricket20 [7]

The best action that Anna-Marie should take next is <u>A- She should talk</u> to the employee to understand their perspective.

Talking to the employee will reveal if they are out-group members and enable Anna-Marie to understand their views.

<h3>Who is an out-group member?</h3>

An out-group member is an individual in an organization who does not identify themselves as part of the group or unit.

An out-group member does not pursue the same goals as other group members and most times feels excluded from the group.

<h3>Answer Options:</h3>

A- She should talk to the employee to understand their perspective.

B- She should redistribute the company policy describing inclusion expectations.

C- No action is required; she is already acting ethically.

D- She should start documenting her efforts at inclusion.

Thus, the best action that Anna-Marie should take next is <u>A- She should talk</u> to the employee to understand their perspective.

Learn more about out-group members at brainly.com/question/7548841

3 0
2 years ago
Is insurance judgment rating based on
Savatey [412]

Answer:

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3 0
3 years ago
Sven goes to a bar, drinks eight shots of bourbon, and then goes to an electronics store, where he buys a large flat-screen TV f
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Answer:

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3 years ago
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Rom4ik [11]

Answer: $87780

Explanation:

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