Expected return of the stock is greater than 12%.
Using formula, Risk free rate + beta (market risk rate - risk free rate)\
= 2% + 2.0 (7%-2%)
= 13.6 - 0.4* risk premium
Risk premium of a stock is greater than 12%.
A stock's total return takes into account both capital gains and losses as well as dividend income, as opposed to a stock's nominal return, which only displays its price movement. In addition to considering the actual rate of return, investors should consider their ability to withstand the risk involved with a given investment. An investment's return on investment (ROI) provides a general indication of its profitability. The return on investment (ROI) is calculated by subtracting the investment's initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.
Note that the full question is:
If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the stock?
A. less than 12%.
B. 12%.
C. greater than 12%.
D. cannot be determined.
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Answer:
The business is demonstrating ethical environmental practices.
Explanation:
The business is being mindful of the environment. Reduced carbon emissions are the remedy for global warming. Owners of these factories care about future generations. Workers in the factories will be healthier as a result of more fresh air.
Answer and Explanation:
The computation of the purchase of fixed assets is shown below:-
March 12 Purchase of fixed assets = $274,000. This same is shown in the investing activities section of the cash flow statement in the negative sign
October 4 Sale of fixed assets = $151,000. This same is shown in the investing activities section of the cash flow statement in the positive sign
Gain on sale of the fixed asset is
= Sales Value - Cost of asset
= $151,000 - $129,000
= $22,000
This amount is shown in the operating activities section of the cash flow statement in the negative sign
<span>Low relief.
A low relief is an anticipating picture with a shallow general profundity, for instance utilised on coins, on which all pictures are in low help. In the most minimal reliefs the relative profundity of the components indicated is totally contorted, and if seen from the side the picture has neither rhyme nor reason, yet from the front the little varieties inside and out enlist as a three-dimensional picture. Different forms contort profundity significantly less. It is a system which requires less work, and is in this way less expensive to deliver, as less of the foundation should be evacuated in a cutting, or less displaying is required</span>
When it comes to executing plans, the role of a manager is controlling and problem solving.
<h3>Who is a manager?</h3>
Managers supervise the activities of others in order to achieve goals. Managers in the modern workforce may be in charge of systems or specific functions that do not involve humans.
A manager has several responsibilities in an organization. One of them is concerned with carrying out the plan devised to achieve organizational objectives. A manager uses this plan to control and solve problems that may arise while carrying out the plan, as well as to make necessary adjustments.
For example, compare actual results to planned results and make adjustments as needed.
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