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4 years ago

__________ is the return on a stock beyond what would be predicted from market movements alone.

Business

1 answer:

vitfil [10]4 years ago

4 0

Answer:

The correct answer of the given question is B) an abnormal return

Explanation:

Abnormal return which is also termed as excess return or alpha return , is the rate of return which we get from the portfolio ( portfolio's return ), which is not explained by the rate of return of market. This abnormal return can be positive or negative, and that depends on what the actual return would be in relation to the normal return. So we can say that the abnormal return can be calculated as -

Actual return - Normal return

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Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,450 monthly. The contract currently sells for $114

romanna [79]

Answer:

a. 1.27%

b. 15.24%

c. 16.35%

Explanation:

a. What is the monthly return on this investment vehicle?

The formula for the value of a Perpetuity is;

Value = Payment/ rate

Rate = Payment/ Value

Rate = 1,450/114,000

= 0.0127

= 1.27%

b. What is the APR?

APR is the annual rate. The above figure is the monthly rate.

APR = Monthly rate * 12

= 1.27 * 12

= 15.24%

c. What is the effective annual return?

Effective annual return = [1 + (APR/n)]^n – 1

n is the number of compounding periods which is 12 here for monthly compounding.

= [1 + (15.24%/12)]^12– 1

= 16.35%

5 0

3 years ago

A line which has a slope of O is<br> O A. undefined<br> B. horizontal<br> C. Zero<br> D. vertical

ANEK [815]

It can be Undefined or Zero

8 0

3 years ago

What type of system is used by senior management to help make decisions such as nonroutine decisions requiring judgment, evalua

Rom4ik [11]

Answer:

Executive support systems

Explanation:

Executive Support Systems enable users to convert organisational data from various departments (such as accounts, HR, sales etc.) into summarized reports needed by senior management to make key decisions. Some Executive Support System tools can be used to analyze data and enable top management to determine forecasts based on input data.

4 0

3 years ago

With the prevalence of internet capable devices, it has been said that this is the most connected generation in the world. Give

erica [24]

A positive impact of technology is, learning things on the internet, for exapmle:This app. A negative impact on technology is staying on a device all day and not getting fresh air, or getting fit, even having eye damage from being too close to a screen.

4 0

3 years ago

Last year Sarah invested money in two accounts. The first account had an interest rate of 2%2% and the second account had an int

postnew [5]

Answer:

the amount invested in first account = $6,100

and, the amount invested in second account = $6,000

Explanation:

Data provided:

Interest rate of first account = 2% = 0.02

Interest rate of second account = 5% = 0.05

Let the amount invested in second account be 'a'

thus,

the amount invested in first account = a + $100

Now,

Interest = principle × interest rate

therefore,

For first account

Interest = ( a + $100 ) × 0.02 = 0.02a + 2

and

for second account = a × 0.05

also,

0.02a + 2 + ( a × 0.05 ) = $422

0.07a + 2 = $422

0.07a = $420

a = $6,000

Hence,

the amount invested in first account = a + $100 = $6,000 + $100 = $6,100

and, the amount invested in second account = a = $6,000

4 0

4 years ago