Answer:
<u>13.2%</u>
Explanation:
As per Capital Asset Pricing Model (CAPM),
Expected Rate Of Return = 
wherein, 
= Risk free rate of return on treasury bonds
B= Beta , which represents the degree of sensitivity of security return to the market return.
= Return on market portfolio
Thus, Expected rate of return of security X = 6 + 1.2(12 - 6)
= 13.2%
CAPM model is used for calculating expected rate of return. As per the model, the investors expect a risk premium represented by excess of rate of return of market portfolio over risk free rate , in addition for the risk free rate of return.
The risk premium serves as a compensation for investing in risky securities instead of risk free securities.
Answer:
Annual depreciation= $4,000
Explanation:
Giving the following information:
The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of estimated 5-year life.
<u>To calculate the depreciation expense, we need to use the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (29,000 - 9,000)/5
Annual depreciation= $4,000
Answer:
C) lack of venture capital for innovative products.
Explanation:
Embryonic industries are such industries that are at the beginning stage in their life-cycle. More specifically, newly established ventures are called the embryonic industry or firm.
Options A, B, D, and E all are wrong because a new firm may not produce high qualified first products. It may not have the right complementary products, the production cost may be higher than expected, and finally, there are a few distribution points. Those lead to the slow growth of the embryonic industry.
Option C is the answer because venture capitalists like to invest in innovative products, so there should not be a lack of capital.
Answer:
I think the answer is e. Because you the variable that if everyone stands up you cant see is omitted.
Answer:
EWU students
GPA
January: 3.5
February: 2.6
March: 3.6
April : 3.1
May: 3.7
June:2.8
July: 2.9
August: 2.1
September: 2.8
October: 3.1
November: 2.2
December: 2.5
Explanation:
The GPA for EWU students shows declining pattern over the past 12 months. The students have been focused on their fall internship program and the studies are neglected. The GPA of students is declining and the minimum GPA is 2.1 which has been secured in the month of August.
