1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alukav5142 [94]
3 years ago
5

Your estimate of the market risk premium is 9%. The risk-free rate of return is 4% and General Electric has a beta of 0.7. Accor

ding to the CAPM, what is its expected return?
Mathematics
1 answer:
weqwewe [10]3 years ago
6 0

Answer:

Expected rate of return is 10.3%

Step-by-step explanation:

CAPM calculate the expected return by using the risk free rate market premium and beta of investment. It helps to decided the additional investment in a well diversified portfolio.

Formula of CAPM to calculate the rate of return

Rate of Return = Risk free rate + beta ( Risk premium )

Rate of Return = 4% + 0.7 ( 9% )

Rate of Return = 4% + 0.7 ( 9% )

Rate of Return = 10.3%

You might be interested in
What is the value of w?<br> A.52.5 <br> B.75<br> C.40 <br> D.100
malfutka [58]
The answer is B. 75 because 105 plus 75 equals 180 degrees...... I used to work on this when I was in 6th grade so it is easy to me hope that helped i tried my best hope you get a 100 hundred as your grade

The answer is = B. 75 
5 0
2 years ago
Solve the system of linear equations by substitution x+4y =37 y = -x + 16
pantera1 [17]
You plug -x+16 in for y in x+4y=37 to get x after you multiply x+4y=37 by -1.
-x-4(-x+16)=-37
-x+4x-64=-37
3x-64=-37
3x=27
x=9
Then you plug 9 into either equation to get y.
y=-x+16
y=-(9)+16
y=7

x=9 and y=7
4 0
3 years ago
elie is now 4 times as old as her son. in 5 years time shes going to be 3 times as old as her son. how old is ellies son now?
tigry1 [53]

Answer:

Her son is 10 years old.

Step-by-step explanation:

Let son be x

Ellie is 4x

In 5 years time: Her son = x + 5

Ellie = 4x + 5

Given that she will then be 3 times as old as her son: 4x + 5 = 3(x + 5)

Solve x: 4x + 5 = 3(x + 5) ,4x + 5 = 3x + 15

x = 10

5 0
3 years ago
Help me <br> Show all your work
Andreyy89
3x+2 (5x-1)=11
3x +10x -2=11
3x+10x=13
13x=13
X=1
4 0
2 years ago
Read 2 more answers
Write the standard equation of the circle with center (-14, -3) that passes through the point (-5,3),
grin007 [14]

Answer:

(x + 14)^2 + (y + 3)^2 = 117

Step-by-step explanation:

Equation of a circle:

The equation of a circle with center (x_0,y_0) is given by:

(x - x_0)^2 + (y - y_0)^2 = r^2

In which r is the radius.

Center (-14, -3)

This means that x_0 = -14, y_0 = -3

So

(x - x_0)^2 + (y - y_0)^2 = r^2

(x - (-14))^2 + (y - (-3))^2 = r^2

(x + 14)^2 + (y + 3)^2 = r^2

Passes through the point (-5,3),

This means that when x = -5, y = 3. We use this to find the radius squared. So

(x + 14)^2 + (y + 3)^2 = r^2

(-5 + 14)^2 + (3 + 3)^2 = r^2

r^2 = 117

So, the equation of the circle is:

(x + 14)^2 + (y + 3)^2 = r^2

(x + 14)^2 + (y + 3)^2 = 117

6 0
2 years ago
Other questions:
  • Two points sit on a line with the following coordinates p(2,2) and Q(3,7) which is the distance from p to q
    10·1 answer
  • Evaluate the expression if a = -3, b = 64, c = 4, and d = 36.<br> 4a? + 2c
    5·1 answer
  • There are two other ways to write this fraction.<br><br> −15/29<br> List them in the space below.
    15·1 answer
  • Hey this text is just for min word requirement the problem is in the picture
    7·2 answers
  • Tell whether each equation represents a direct variation. if so, identify the constant of variation.
    9·1 answer
  • A culture started with 2,000 bacteria. After 2
    5·1 answer
  • Ramon plays a game which his older sister he first gains 5 points then loses 8 points and finally gains 10 points what is his fi
    14·1 answer
  • Find the slope of the passing line through the points (-4,7) and (-9,4)
    6·2 answers
  • Whats 6 divided by 24 (show work)
    8·1 answer
  • The area of a rectangular room is 750 square feet. The width of the room is 5 feet less than the length of the room.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!