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Nadya [2.5K]
3 years ago
7

Stock Y has a beta of 1.59 and an expected return of 25%. Stock Z has a beta of 0.44 and an expected return of 12%. If the risk

free rate is 6% and the market risk premium is 11.3%. Which of the following statements is correct:
a. Stock Y and stock Z are correctly priced
b. Stock Y is underpriced and stock Z is overpriced
c. Stock Y is overpriced and Stock Z is underpriced
d. Both stock Y and stock Z are underpriced
Business
1 answer:
muminat3 years ago
7 0

Answer:35%

Explanation:

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STatiana [176]

Explanation:

The advertising strategy before the internet was carried out on platforms such as radio, television and newspapers, which were the media that people most had access to. Currently, the internet is the main platform for advertising and interaction between companies and consumers. This is due to the ease and speed with which the flow of the internet happens, the messages are seen almost instantly and available in the palm of the hand, available from a smarthphone.

However, despite the ease of implementing marketing through social media, it is necessary for companies to adopt an advertising engagement strategy, the narrative must be summarized and contain essential traits that convey who the company is and what it wants to pass on to consumers , generating value and direct communication, making the message different and striking in a medium where there is different information every second.

4 0
3 years ago
If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measured in terms of pr
FrozenT [24]

Answer:

4 million  houses

Explanation:

Opportunity cost is the forfeited benefit as a result of choosing one option over others.  Its value equals the cost of the next best alternative.

The cost of constructing a new home is $150,000.  If the Federal Defence has a budget of $600 billion, the opportunity cost of spending that amount will be the equivalent number of units that can be built by the amount.

To calculate the number of units= $600 billion divided by $150,000

= $600,000,000,000/ $150,000

=4,000,000

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6 0
3 years ago
Suppose that in 2010, the producer price index increases by 1.5 percent. as a result, economists most likely will predict that?
DiKsa [7]

Suppose in 2010, the producer price index increases by 1.5 percent. As a result, the economists are most likely to predict that the consumer price index will increase in the future.

The producer price index is used in order to measure inflation from the perspective of costs to industry. Thus, the producer price index measures the cost of a group of goods and services which are purchased by firms.

Whereas the consumer price index refers to an average of the prices received by producers of goods and services at all the stages of the production process. Thus, when the producer price index increases by 1.5 percent, this is the indication that consumer price index will increase in the future.

Hence, higher producer prices means that consumers will pay more when they buy.

To know more about producer price index here:

brainly.com/question/6335529

#SPJ4

3 0
2 years ago
Skeeter's Skeeball Castle has seen its business slow down ever since Kerrie's Off-Key Karaoke opened up next door. Since the ope
oee [108]

Answer:

The correct answer is letter "A": increased.

Explanation:

Opportunity cost is the return of the option chosen compared to the forgone choice. Opportunity cost can also be defined as the return of the next best available option aside from the option taken. The more a good or service is consumed, the lower its opportunity cost turns. <em>The fewer the good or service is requested, the higher its opportunity cost</em>.

Thus, <em>because Skeeter's Skeeball Castle business has dwindled, the opportunity cost of playing skeeball at Skeeter's has increased.</em>

3 0
3 years ago
Determine the ending inventory under the conventional retail method for the furniture department of Mayron Department Stores fro
Alisiya [41]

Answer:

$199,541.51

Explanation:

5 0
3 years ago
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