Answer:
Required rate of return= 14.8
If the security is expected to return 15%, it is underpriced.
Explanation:
The required rate of return on the security can be calculated using the CAPM formula which states that
Required rate of return =rf + B(rm - rf)
where rf= risk free rate
B= beta of the security
rm = return on the market
Required rate of return =
= 14.68%
If the security is expected to return 15%, it is underpriced, and is a good investment. Discounting the expected cash-flows from the security at this higher expected return of 15% is going to yield a lower price compared to what the investor is prepared to pay given his required rate of return of 14.68%.
Percentage is a ratio of a unit of an outcome in an event divided to the total sample times 100%. It means parts per hundred. To calculate, we get the ratio of the people who liked the choices and the total sample then multiply by 100. We calculate as follows:
Percent = 140/250 x100 = 56%
Answer:
183.00%
449.15%
Explanation:
The computation of annual percentage rate and the effective annual rate shown below:
Annual percentage rate is
= Interest rate per month × Total Number of months in a year
= 15.25% × 12 months
= 183.00%
The effective annual rate is
= (1 + nominal interest rate ÷ periods)^ number of period - 1
= (1 + 15.25% ÷ 12)^12 - 1
= 449.15%
The answer is B, which is weight of gold. I say this because money is used as a means of exchange, that is; it is used to get goods.
Money is also used to store value because if you pay for something, you value it more.
It is also a unit of account. Hope i helped. Have a nice day.