The right answer for the question that is being asked and shown above is that: "corporate bonds."The cash flows for a perpetuity continue into the future indefinitely. An example of a perpetuity is: <span>corporate bonds</span>
Answer:
good stuff
Explanation:
people these days (including me sometimes) put more energy into bad things and negative things .and its partly social media's fault.
The Consumer Credit Act is protections to apply between agreements between traders and individuals, sole traders, partnerships and unincorporated associations. But not agreements made between traders and bodies.
Answer:
expected return on market = 0.10373 or 10.373%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the market risk premium
We will first calculate the market risk premium using the required rate of return for stock, beta and risk free rate and plugging these values in the formula above.
0.1330 = 0.058 + 1.64 * rpM
0.1330 - 0.058 = 1.64 *rpM
0.075 = 1.64 * rpM
rpM = 0.075 / 1.64
rpM = 0.04573 or 4.573%
As we know that the beta for market is always equal to 1, we can calculate the rate of return for market as,
expected return on market = 0.058 + 1 * 0.04573
expected return on market = 0.10373 or 10.373%