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lyudmila [28]
3 years ago
5

According to the CAPM, what is the expected market return given an expected return on a security of 17.2%, a stock beta of 1.6,

and a risk-free interest rate of 6%?
Business
1 answer:
seropon [69]3 years ago
3 0

Answer:

Expected market return is 13%

Explanation:

CAPM is used to calculate the expected return on an asset for decision making to add any further asset to a well diversified portfolio. It involves different factors like market risk premium, asset beta and risk free rate as well to calculate a return rate which is expected to obtain from underline asset or investment.

As per given data

Expected return = 17.2%

Stock beta = 1.6

Risk free rate = 6%

According to CAPM

Expected Return on security = Risk free rate + Stock beta ( Market Risk Premium )

17.2% = 6% + 1.6 × ( Market Risk Premium )

17.2% = 6% + 1.6 × ( Market return - Risk free rate )

17.2% = 6% + 1.6 × ( Market return - 6% )

17.2% - 6% = 1.6 × ( Market return - 6% )

11.2% = 1.6 × ( Market return - 6% )

11.2% / 1.6 = Market return - 6%

7% = Market return - 6%

7% + 6% = Market return

Market return = 13%

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Explanation:

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1. National Computers, Inc., was incorporated in Nebraska, has its main office in Kansas, and does business in Missouri. Nationa
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Explanation:

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Accumulated depreciation shows a beginning balance of $9,300 and an ending balance of $10,700. How much depreciation expense was
faust18 [17]

Answer:

$1400

Explanation:

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The depreciation expense is the difference between the accumulated depreciation at the end and the accumulated depreciation at the beginning. It is given as:

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You recently interviewed a candidate for a position in your sales department. However, another candidate was more qualified. You
AleksAgata [21]

Answer:

B. Invite further correspondence.

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D. Buffer the opening.

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These are all strategies that can be used to soften the bad news of rejection for a candidate that is not going to be hired. When you buffer the opening of your correspondence, you contribute to making the reader feel less negative about the news. Moreover, by inviting further correspondence, you demonstrate that the rejection is nothing personal and should not be taken as such. Finally, by closing with good wishes, you end on a positive note that is reassuring to the candidate.

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Based on the various cost rates and hours for XYZ Company, the labor efficiency variance is $2,000 unfavorable

<h3>What is the labor efficiency variance?</h3>

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Solving gives:

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Find out more on the labor efficiency variance at brainly.com/question/27404735

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