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laila [671]
3 years ago
5

Arbitrage is based on the idea that _________

Business
1 answer:
eimsori [14]3 years ago
6 0
Assets with identical risks must have the same expected rate of return
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The Chicago Tribune's published article about BP led to Select one: a. an increase in BP's stock price b. protests c. the positi
never [62]

Answer:

B) Protests

Explanation:

5 0
3 years ago
What role does utility play in the economic model of consumer​ behavior? When modeling consumer​ behavior, utility A. reflects t
olya-2409 [2.1K]

Answer:

A. reflects the enjoyment a consumer receives from consuming a particular set of goods and services

Explanation:

When modeling consumer​ behavior, utility reflects the enjoyment a consumer receives from consuming a particular set of goods and services

4 0
3 years ago
The portfolio that contains the average return on a combination of market index with the same beta is often called _____________
elena-s [515]

The portfolio that contains the common return on a mixture of market index with the same beta is often known as protection market line.

<h3>Is safety market line the same as CAPM?</h3>

The safety market line (SML) is a visual representation of the capital asset pricing model (CAPM). SML is a theoretical representation of the predicted returns of belongings primarily based on systematic, non-diversifiable risk.

<h3>How do you study a security market line?</h3>

The two-dimensional correlation between anticipated return and beta can be calculated via the CAPM formula and expressed graphically via a safety market line, or SML. Any protection plotted above the SML is interpreted as undervalued. A safety under the line is overvalued.

Learn more about security market line here:

<h3>brainly.com/question/15877803</h3><h3 /><h3>#SPJ4</h3>
5 0
1 year ago
Kermit is considering purchasing a new computer system. The purchase price is $133,063. Kermit will borrow one-fourth of the pur
lesya [120]

Answer:

NPV =  $20,040.35  

Explanation

The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

Annual net cash inflow = Savings - Technician cost = 61,427- 20,000

                                       = $41,427

PV of Cash flow= $41,427  × (1-(1.12^(-5))/0.12=  149,335.06  

PV of salvage value = 1.12^(-5)×$6,641 =  3768.281749

NPV = 149,335.06  + 3,768.281  -133,063= 20,040.35  

             

7 0
3 years ago
Stanley, Inc.'s 2018 income statement reported net sales of $6,000,000, uncollectible accounts expense of $160,000, and net inco
Daniel [21]

Answer:

d.   Account receivable days = 72 days

Explanation:

The average receivable days. This is the average length of time it takes a business to collect the amount due from its customers in respect of  credit sales.

When a business sells on credit , customers are expected to settle their account within a given credit period. Account receivable days is computed to evaluate how well a business is managing its investment in the account  receivables.

The shorter the better, as it means that custmers are paying on time, thereby preserving cash position for the business and reducing the risk bad debt.

A prolonged account receivable days means a poor credit control system  which comes with the attendants risk bad debt and additional financing costs for the business.

To compute the account receivable days (debtors collection period), use this formula:

Account receivable days= (Average account receivable/Credit sales) × 360 days.

So we apply this to the question:

Account receivable days= ( 1,200,000/6,000,000) × 360 days

                               = 72 days

5 0
3 years ago
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