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Inga [223]
3 years ago
11

The CAPM is built on historic conditions, although in most cases we use expected future data in applying it. Because betas used

in the CAPM are calculated using expected future data, they are not subject to changes in future volatility. This is one of the strengths of the CAPM.
a. True
b. False
Business
1 answer:
dimaraw [331]3 years ago
4 0

Answer:

False

Explanation:

The reason is that the betas are calculated using the past data which means that the Capital asset pricing model solely rely on the past data which is not the strength of the CAPM. It is basically a weakness of the model so the statement is incorrect.

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Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 1
Ghella [55]

Answer:

The answer is D

Explanation:

Solution:

Recall that:

Malloy Furniture purchases two products: Big shelves B and Medium shelves M

The cost of big shelf is =$500

The space required = 100 cubic feet

The cost of each medium shelf is =$300

Storage space = 90 cubic feet,

Now,

Since the values 100 and  90 is greater than 18000 cubic feet available for storage, what is required would be 100 big shelves and 100 medium shelves

5 0
3 years ago
Identify each action listed here as a federal, state, or shared power.
Korvikt [17]

Answer:

Appropriate funds for social programs  <u>SHARED POWER</u> ⇒ THERE ARE BOTH FEDERAL AND STATE SOCIAL PROGRAMS, AND EACH ONE GATHERS FUNDS FOR THEM

Construct a new highway  <u>SHARED POWER</u> ⇒ BOTH STATES AND THE FEDERAL GOVERNMENT CAN BUILD HIGHWAYS

Redesign and print the hundred-dollar bill  <u>FEDERAL POWER</u> ⇒ ONLY THE FEDERAL GOVERNMENT CAN PRINT MONEY

Determine the requirements to receive a driver's license  <u>STATE POWER</u> ⇒ STATE GOVERNMENTS DETERMINE THE REQUIREMENTS FOR ISSUING DRIVING LICENCES, E.G. AGE

Raise taxes  <u>SHARED POWERS</u> ⇒THERE ARE FEDERAL, STATE AND MUNICIPAL TAXES, AND EVERY GOVERNMENT LEVEL DETERMINES THEIR OWN TAX RATES.

Negotiate a trade agreement with the European Union <u>FEDERAL POWERS</u> ⇒ THE COMMERCE CLAUSE ESTABLISHES THAT ONLY CONGRESS CAN REGULATE INTERSTATE COMMERCE. THE EXECUTIVE BRANCH MAY NEGOTIATE A DEAL BUT CONGRESS MUST APPROVE IT.

Explanation:

5 0
3 years ago
Read the graph. What can the reader reasonably conclude from information in the graph?
zavuch27 [327]

Answer: A. Fewer new businesses were started in 2010 than in other years

Explanation:

5 0
3 years ago
Read 2 more answers
Project risk is lowest during the: Finish phase of the project life cycle. Conceive phase of the project life cycle. Develop pha
olchik [2.2K]

Answer:

Finish phase of the project life cycle.

Explanation:

The finish phase (or termination, or completion phase) of a project life cycle is basically when the project is completed and it is being delivered to the customer. Depending on the project, paperwork and documents are handed out to the customer, contracts with workers and suppliers are terminated. Everyone involved with the project must be notified about its completion and all obligations are paid for.

5 0
3 years ago
Lincoln Park Co. has a bond outstanding with a coupon rate of 6.04 percent and semiannual payments. The yield to maturity is 6.1
Reil [10]

Answer:

value of the bond = $2,033.33

Explanation:

We know,

Value of the bond, B_{0} = [I * \frac{1 - (1 + i)^{-n}}{i}] + \frac{FV}{(1 + i)^n}

Here,

Face value of par value, FV = $2,000

Coupon payment, I = Face value or Par value × coupon rate

Coupon payment, I = $2,000 × 6.04%

Coupon payment, I = $128

yield to maturity, i = 6.1% = 0.061

number of years, n = 15

Therefore, putting the value in the formula, we can get,

B_{0} = [128 * \frac{1 - (1 + 0.061)^{-7}}{0.061}] + [\frac{2,000}{(1 + 0.061)^7}]

or, B_{0} = [128 * \frac{1 - (1.061)^{-7}}{0.061}] + [\frac{2,000}{(1.061)^7}]

or, B_{0} = [128 * \frac{0.3393}{0.061}] + 1,321.3635

or, B_{0} = [128 * 5.5623] + 1,321.3635

or, B_{0} = $711.9738 + 1,321.3635

Therefore, value of the bond = $2,033.33

3 0
3 years ago
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