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tester [92]
3 years ago
15

A stock has an expected return of 12.8 percent and a beta of 1.19, and the expected return on the market is 11.8 percent. What m

ust the risk-free rate be?
Business
1 answer:
Stels [109]3 years ago
8 0
<span>We know from Capital asset pricing model that expected return (ER) of any stock can be calculated as ER = Rf + beta* ( Rm - Rf) where, Rf is risk free rate Rm is expected return on market. Therefore, 0.128 = Rf + 1.19* (0.118 - Rf) which is equivalent to 0.19 Rf = 0.140 - 0.128 Or, risk free rate, Rf = 0.0654 ~ 6.54%</span>
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The following information was used in reconciling the bank account for Minerva Company on October 31: Balance per bank, October
Strike441 [17]

Answer: A $37.280.

Explanation:

Adjusted book balance will include those transactions made or charged by the bank for/to the company so will include;

= Balance per books - Insufficient funds check - Utility bill paid by bank  - Check printing charge

= 40,000 - 1,400 - 1,240 - 80

= $37,280

3 0
2 years ago
An example of a discretionary fixed cost would be: Group of answer choices Taxes on the factory. Depreciation on manufacturing e
asambeis [7]

Answer:

Research and development

Explanation:

Fixed cost is cost that does not vary with output. It is cost that is incurred regardless of the units of output produced

Discretionary fixed cost is cost that is incurred at the discretion of the management of a company.

A company can decide to undertake research and development or not to. So, it is an example of discretionary fixed cost

8 0
2 years ago
Finding dominant strategies is often a very way of analyzing a game. Consider the following game: Microsoft and Apple are the tw
STALIN [3.7K]

Answer: Option A -- Choosing low is a weakly dominant strategy for Apple.

Explanation: Dominant strategy in a game theory can be defined as the course of action that occurs when one strategy/player is better than the other strategy/player regardless of what the other player does or how well the other player may play. dominant strategy is all about a player who has the highest favours in a game. Considering the above matrix, we know that Apple has the dominant strategy. And for apple to choose low is a weakly dominant strategy for it.

7 0
3 years ago
A company borrowed $40,000 cash from the bank and signed a 6-year note at 7% annual interest. the present value of an annuity fa
Anna [14]
The present value (PV) of an annuity of P equal periodic payments for n years at r% is given by:

PV=Pa_{n\rceil r}

where a_{n\rceil r} is the <span>present value of an annuity factor for n years at r%.

Given that </span>a<span> company borrowed $40,000 cash from the bank and signed a 6-year note at 7% annual interest and that the present value of an annuity factor for 6 years at 7% is 4.7665.

Then

40000=4.7665P \\  \\ P= \frac{40000}{4.7665} =8,391.90

Therefore, </span><span>the annual annuity payments equals $8,391.90</span>
6 0
3 years ago
The Country Music Hall of Fame is considering increasing admission prices to increase gross revenue. If the price of admission r
Kitty [74]

Answer:

1

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (30/20) - 1 = 0.5 = 50%

Percentage change in price = (1500 / 3000) - 1 = 0.5 = 50%

50% / 50% = 1

I hope my answer helps you

3 0
3 years ago
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