Answer:
The answer is risk free rate should be 5.4%
Explanation:
We apply the CAMP model to solve the risk free rate: E(r) = Risk free rate + Beta x ( Market return - Risk free rate).
Denote X as risk free rate; y is market risk premium ( that is market return minus risk free rate)
We have:
For portfolio A: x + 1 * y = 13.4%;
For portfolio B: x + 1.2 * y = 15%
Solving the two equation above, we have: y = 8%; x = 5.4%
So, the risk free rate should be 5.4%.
Answer:
The correct answer to the following question is the last option - the shares of ownership in a company that may pay dividends .
Explanation:
Stocks which are also popularly know as shares or equity, can be defined as one of the types of securities which signifies the proportion of ownership in the issuing company . If a person ( who is know as the shareholder or stockholder ) holds a company's shares , then that person is entitled to the proportion of company's assets and earnings ( the proportion would depend upon the number of shares he or she is holding ) . If a company earns profit, then that shareholder would receive some portion of that earning in form of dividends .
Answer:The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance
Explanation:
Stakeholders theory is the theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities such as employees, local market, creditors, supplies and others. The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance
