Expected return of the stock is greater than 12%.
Using formula, Risk free rate + beta (market risk rate - risk free rate)\
= 2% + 2.0 (7%-2%)
= 13.6 - 0.4* risk premium
Risk premium of a stock is greater than 12%.
A stock's total return takes into account both capital gains and losses as well as dividend income, as opposed to a stock's nominal return, which only displays its price movement. In addition to considering the actual rate of return, investors should consider their ability to withstand the risk involved with a given investment. An investment's return on investment (ROI) provides a general indication of its profitability. The return on investment (ROI) is calculated by subtracting the investment's initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.
Note that the full question is:
If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the stock?
A. less than 12%.
B. 12%.
C. greater than 12%.
D. cannot be determined.
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Answer: $155,520
Explanation:
Pension Expense = Service Cost - Expected return on plan assets + Prior service cost amortization + Interest cost
Interest Cost
= Interest rate * Projected benefit obligation
= 0.09 * 728,000
= $65,520
Pension Expense = 110,000 - 30,000 + 10,000 + 65,520
= $155,520
Answer:
Option B Raw goods producer
Explanation:
Marketplace justice asserts that during a loose marketplace economic system, market forces can obtain an honest distribution of healthcare amongst people who have got the liberty to purchase the healthcare offerings they value. In market justice, healthcare is rationed by way of the willingness and potential of humans to pay for healthcare.
Social justice emphasizes treating the human beings inside the society, which includes the negative and the rich, as equals to make sure harmony in the society. marketplace justice, then again, emphasizes giving each individual taking part in the exchange of products and services an equal hazard to prevail.
“Social justice" is the view that everyone merits the same monetary, political, and social rights and opportunities. Social workers goal to open the doorways of getting right of entry to and opportunity for every person, particularly the ones in best need.” national association of Social people. “Social justice encompasses financial justice".
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Answer:
The correct answer is the option A: Developing a system to bill customers, pay suppliers and track inventory.
Explanation:
First of all, an<em> information systems manager</em> has the job of creating, developing and monitoring information systems that could possibly help the organization in its entire structure to improve its performance and therefore that manager focuses in the importance of information as an asset and how could it supports the decision making process for the other executives.
Second of all, a <em>financial manager</em> has the responsability to care about the health of the institution regarding subjects involving money and all of the companies assets. That manager must focuses in the organization of the resources that could help the organization to achieve its goal and how to use them in a proper way.
Finally, in the situation where both of those managers interact together, the main purpose will be to develop an information system, created by the information system manager, that could help the organization to gather information regarding the payment to suppliers, the track of inventory and the bill of customers due to the fact that a system with all that information will help the financial manager to take decisions more properly in order to achieve success.
