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agasfer [191]
3 years ago
7

Your opinion is that security C has an expected rate of return of 0.106. It has a beta of 1.1. The risk-free rate is 0.04, and t

he market expected rate of return is 0.10. According to the Capital Asset Pricing Model, this security is:________.
A. underpriced.
B. overpriced.
C. fairly priced.
D. cannot be determined from data provided.
Business
1 answer:
USPshnik [31]3 years ago
5 0

Answer:

C. fairly priced.

Explanation:

For this question we use the Capital Asset Pricing model formula that is shown below:

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 0.04 + 1.1 × (0.10 - 0.04)

= 0.04 + 1.1 × 0.06

= 0.106

As the expected rate of return given in the question is 0.106

And, we calculate it so it would be appear same i.e 0.106

So, the security is fairly priced

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Less than 18 percent of voluntary customer contributions in a recent year went to renewable energy development in the duke power
Mnenie [13.5K]

Answer:

Option C. Greenwashing

Explanation:

The reason is that the company has labelled its products with the green technology or environment friendly product, which it is not. So the perception of customers who buy environment friendly products are now not reluctant to purchase the company products who has deceived the people by saying that their product is environment friendly product. So the correct option is option C.

Example:

ExxonMobil in the past has said that it has successfully reduced its green house gas emission but in fact, they increased green house gas emissions in the year. So they were trying to increase their sales by deceiving people that they are moving towards environment friendly operations.

3 0
3 years ago
why is the daily scrum held at the same time and same place? group of answer choices the consistency reduces complexity. the pla
Mkey [24]

The Daily Scrum is held at the same time and place each day to reduce complexity.

Complexity characterizes the behavior of a system or model where components interact in multiple ways and follow local rules, resulting in nonlinearity, randomness, collective dynamics, hierarchy, and emergence.

The term is generally used to characterize things that have many parts, and those parts interact in various ways, culminating in a higher origin that is greater than the sum of their parts. increase. Investigating these complex interconnections at various scales is a major goal of complex systems theory.

2010 science follows different approaches to characterize complexity. Zayed et al. Reflect many of them. Neil Johnson said, "Even among scientists, there is no clear definition of complexity, and scientific terminology has traditionally been communicated in terms of specific examples.."

The definition of "complexity science" is "phenomena arising from a collection of interacting objects"

learn more about complexity here;  brainly.com/question/4667958

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6 0
1 year ago
The primary difference between a change in supply and a change in the quantity supplied is: Select an answer and submit. For key
kipiarov [429]

Answer:

D

Explanation:

A change in quantity supplied is as a result of a change in the price of the good. This change in the price leads to a movement along the supply curve. If price increases, there is an upward movement up along the supply curve and if there is a decrease in price, there is a movement down the demand curve.

A change in supply is caused by other factors other than price. Some of these factors include :

  • A change in the number of suppliers
  • The cost in the price of raw materials needed in the production of the good.

A change in supply leads to a movement outward or inward

3 0
2 years ago
Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupo
kodGreya [7K]

Answer:

5.4%

Explanation:

Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $900.90, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation

Face value of bond = coupon amount / interest rate

1000 = 80 / 8%

Therefore 900.9 = 80 / revised interest rate

multiply both sides by the 'revised interest rate

revised interest rate x 900.9 = 80

Hence, revised interest rate = 80  / 900.9 = 9%

Secondly if the company’s tax rate is 40%, the component cost of debt for use in the WACC calculation = kd (1 - t)

where:

kd = Cost of debt

t = tax rate

Therefore cost of debt for use in the WACC calculation = 9% (1-0.4) = 5.4%

4 0
3 years ago
Which occupation would be least affected by inflation?
nexus9112 [7]
It seems that you have missed the given options for this question, but anyway here is the correct answer. The occupation that would be least affected by inflation would be a doctor in private practice. Inflation is defined as a rise in the general level of prices. Hope this is the answer that you are looking for. 
6 0
3 years ago
Read 2 more answers
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