Why is the white epiphone explorer more expensive

The risk-free rate is 5.4 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM.

Karo-lina-s [1.5K]

Answer:

11.419%

Explanation:

Given that,

Risk-free rate = 5.4

Market risk premium = 5

Portfolio = $1 million = $1,000,000

Amount invested in stock A = $218,000

Beta A = 0.5

Amount invested in stock B = $1,000,000 - $218,000

= $782,000

Remainder invested in stock B that has a beta = 1.4

Portfolio beta:

= [(Amount in A × Beta of A) + (Amount in B × Beta of B)] ÷ Total Amount

= [($218,000 × 0.5) + ($782,000 × 1.4)] ÷ $1,000,000

= ($109,000 + $1,094,800) ÷ $1,000,000

= 1.2038

Required return:

= Risk free rate + (Beta × Market risk premium)

= 5.4% + (1.2038 × 5%)

= 5.4% + 6.019%

= 11.419%

Therefore, the required return on this portfolio is 11.419%

8 0

3 years ago

Have you ever witnessed fan misbehavior? describe the experience and how it impacted the value you received from the experience.

Brums [2.3K]

What is Misbehavior?
One of the serious issues, especially in secondary school, is when students misbehave or engage in negative class participation, which can include disruptive talking, chronic work avoidance, clowning, interfering with teaching activities, harassing classmates, verbal insults, rudeness to teachers, defiance, and hostility.

Main Content

from students will differ. The consuming situation and environment will typically have the greatest impact on value for other consumers. especially how bad fan behavior makes it difficult for them to see, hear, or otherwise enjoy the event. Typically, fans' inappropriate behavior, such as chanting obscenities at officials, makes customers feel uneasy or terrified. These incidents also interfere with the quality of the shopping experience. Numerous victims of inappropriate fan conduct claim they were unable to concentrate on the event or were unable to fully engage out of concern for retaliation.

To learn more about Misbehavior
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6 0

2 years ago

What is the correct answer regarding short-run and long-run budgets? a. A short-run budget is generally less than a year in leng

goldfiish [28.3K]

Answer: Option A

Explanation: In simple words, Short run budgets refers to the budgets which are made for a period of less than 12 months and long run budgets are made for a time period greater than one year.

Short run budgets are prepared for some specific assets such as supplying a new customer for one year.

Thus, from the above we can conclude that the correct option is A.

5 0

3 years ago

Which facility has enabled rural hospitals to have increased access to specialist consultations?

pantera1 [17]

Answer:

<em>Telemedicine</em>

Explanation:

Distributing health related information and services via telecommunication technologies and electronic information is called telemedicine. The contact between patient and clinician is long distance.

The clinician used electronic means such as computers to intervene, monitor and educate the patient. Livongo health and Teladoc are two famous tele medicine companies.In US telemedicine has successfully reduced the healthcare costs and improved the patient access to medical care. According to a study 61 percent of healthcare institutions in US use tele medicine.

4 0

3 years ago

In May 2009, General Motors started closing 2,600 of its retail outlets and finally filed for bankruptcy in June. It emerged fro

harina [27]

Reorganization

<u>Explanation:</u>

Revamping may allude to the restoration of an organization's funds as per a liquidation. It can likewise allude to any procedure that influences the duty structure of an organization. Furthermore, revamping may allude to a merger or obtaining or offer of an organization that changes the proprietorship, stock, or lawful and the executive's structure.

The redesign is a conventional court-managed procedure of rebuilding an organization's funds after chapter 11. As per insolvency laws, explicitly Chapter 11, an organization is given security from lenders during the timespan when the organization proposes and a liquidation court audits and affirms a particular revamping plan. The rearrangement is planned to reimburse lenders to the most extreme degree conceivable and to rebuild the organization's accounts, the executives, and tasks to keep a similar issue from emerging once more.

8 0

3 years ago