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Nookie1986 [14]
3 years ago
13

The interest rate on short-term U.S. government bonds is 4 percent. The risk premium for any asset with a beta = 1.0 is 6 percen

t. What is the average expected rate of return on the market portfolio?
Business
1 answer:
Basile [38]3 years ago
6 0

Answer:

The average expected rate of return on the market portfolio is 10 percent.

Explanation:

The CAPM (fixed asset pricing) model describes the relationship between systematic risk and expected return on assets, especially stocks. CAPM is widely used throughout the financial community to value high-risk securities and achieve the expected returns on assets when taking into account the risk of those assets and the cost of capital.

The formula for calculating the expected return on an asset taking into account its risk is as follows:

ERi = Rf + βi (ERm - Rf)

where:

ERi = expected return on investment

Rf = risk-free interest rate = 4 percent.

βi = beta inversion =1.0

(ERm −Rf) = market risk premium = 6 percent.

ERi = 4 + 1 ×(6) =10

The average expected rate of return on the market portfolio is 10 percent.

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_____is the function of coordinating the diverse activities and human resources of a company to produce a smooth-running operati
Alchen [17]

Answer:

b) directing

Explanation:

The four main management functions are:

  1. planning
  2. organizing
  3. directing
  4. controlling

Originally, there were 5 main management functions developed by Henri Fayol (staffing was the fifth one) in the early 20th century. Fayol's management theory is still applied today, although it has been modified and updated.

3 0
3 years ago
Which of the following is not an example of an unhealthy company culture?
densk [106]

Answer: The following is not an example of an unhealthy company culture: <u><em>A slowly evolving culture </em></u>

In the given question it can be stated that apart from option (d) , all other option are an example of an unhealthy company culture. This is so as, the slow evolving culture in an organization is still open to change and does adapt to the need of the surroundings as time evolves, whereas; other given option does not.

<u><em>Therefore , the correct option in this is (d)</em></u>

8 0
2 years ago
Anna Prentice has worked for years fixing broken typewriters. She is laid off from her job as fewer and fewer people use typewri
fenix001 [56]

Answer:

1. structural unemployment 

Explanation:

Structural unemployment is a form of unemployment that occurs when there's a mismatch between labour's skills and the available jobs. It occurs as a result of technological change.

Anna is unemployed because she can't get a job in her field. Therefore she's structurally unemployed.

Frictional unemployment occurs between the time labour leaves his current employment and the time he finds another one.

Cyclical unemployment is when employment level changes with the business cycle. It rises during a downturn and falls during a upturn.

I hope my answer helps you

4 0
3 years ago
A professional office center is purchased for $475,000. The land value is 20% of the total acquisition cost. What is the annual
Vika [28.1K]

Answer:

$9,744

Explanation:

In the case of the annual  IRS depreciation deduction, the time period for each category assets are different. Like for commercial real estate, the time period is 39 years, for residential real estate, it would be 27.5 years.

The computation is shown below:

= (Purchase value of professional office center × remaining percentage) ÷ (applicable time period)

= ($475,000 × 80%) ÷ (39 years)

= ($380,000) ÷ (39 years)

= $9,744

3 0
3 years ago
An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider; (16-2
jekas [21]

An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider a venture capital .

Option D

<u>Explanation: </u>

Venture capital (VC) is a method of funding that is made available to micro, early-stage and developing businesses by corporations or funds with a high potential for success or development (within employee numbers, annual income, or both).

Example:

Pepperfry, India's biggest furniture e-market brought up USD 100 million in a New session funding led by Goldman Sachs and Zodius Technology Fund. Pepper fry is expanding its emissions by adding to its increasing fleet of supply automobiles in Level III and Level IV cities.

This will also open up new distribution centres and extend its network of carpenters and assemblies. This is a business based e-commerce player's first quantum expenditure in India.

5 0
2 years ago
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