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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%

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Answer:

they need each other in order to be able to happen...

they are <em>dependent</em> on each other... get it??

5 0
3 years ago
Read 2 more answers
17.4 x 1.0 Will the product be less than 17.4, equal to 17.4, or greater than 17.4? 17.4 × 0.98 Less than 17.4 Equal to 17.4 Gre
nikdorinn [45]

Answer:

1) Equal to 17.4

2)Less than 17.4

Step-by-step explanation:

One thing we must always remember that when we have number 0 after the decimal point, it means we do not need to consider that as it will have no effect on product and on the other operations.

So,

1)

17.4 x 1.0 = 17.4 x 1 = 17.4  (Product is equal to 17.4)

2)

Suppose if a number 'A' which is less than 1 is multiplied by any other number 'B', than the multiplication always result in the number less than B.

For example:

1x0.5 = 0.5 which is less than 1

Similarly for

17.4 x 0.98 = Result will be less than 17.4 as the second number is less than 1.

Product is less than 17.4

3 0
3 years ago
The total weight of a fully loaded coal truck is 4 tons. The ratio of the weight of the truck to the weight of the coal is 7:5.
Vera_Pavlovna [14]

Answer:

Step-by-step explanation:

total weight is 4 tons.

ratio of weight of truck to weight of coal is 7:5....added = 12

so 7/12 of the total weight is the truck's

and 5/12 of the total weight is the coal

7/12 of 4 tons = 7/12 * 4 = 28/12 = 2 1/3 tons <== weight of truck

5/12 of 4 tons = 5/12 * 4 = 20/12 = 1 2/3 tons <== weight of coal

8 0
3 years ago
A 16 kg bag of watermelon for $8 per kg
Zarrin [17]
To solve this all we need to do is multiply. 

Since 1 kg is for $8, then we will multiply to see how much 16 kg would be for.

16 × 8 = 128

So, 16 kg is for $128. 

Hope I helped ya!!!!
8 0
3 years ago
What is the length of the base b?
musickatia [10]

Answer:

5 units

Step-by-step explanation:

The graph helps you measure it

6 0
3 years ago
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