Answer:
A
Explanation:
The reason is that it just makes the most sense. Therefor your answer is A) According to the objective theory of contracts, the intent to enter into an express or implied-in-fact contract is judged by the reasonable people standard
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Answer:
Hutters can be claim two dependents
Explanation:
we know here that Hutters can be claim two dependents
because here given Carla and Ellie as Aaron meets neither the residency nor citizenship requirement
but Carla is a qualifying relative and is under the age of 24
but Ellie is above 24 but is a qualifying relative as scholarship is non-taxable
so
we can say that answer is two
Answer:
C. to invest in stocks and make business decisions
Answer:
Expected market return is 13%
Explanation:
CAPM is used to calculate the expected return on an asset for decision making to add any further asset to a well diversified portfolio. It involves different factors like market risk premium, asset beta and risk free rate as well to calculate a return rate which is expected to obtain from underline asset or investment.
As per given data
Expected return = 17.2%
Stock beta = 1.6
Risk free rate = 6%
According to CAPM
Expected Return on security = Risk free rate + Stock beta ( Market Risk Premium )
17.2% = 6% + 1.6 × ( Market Risk Premium )
17.2% = 6% + 1.6 × ( Market return - Risk free rate )
17.2% = 6% + 1.6 × ( Market return - 6% )
17.2% - 6% = 1.6 × ( Market return - 6% )
11.2% = 1.6 × ( Market return - 6% )
11.2% / 1.6 = Market return - 6%
7% = Market return - 6%
7% + 6% = Market return
Market return = 13%
