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
svet-max [94.6K]
3 years ago
5

Beta coefficients may be computed for investment companies and used to compute risk-adjusted rates of return.

Business
1 answer:
shusha [124]3 years ago
7 0

Answer:

True

Explanation:

The basic function of a beta coefficient is to measure the volatility or systematic risk. Firms and organisation analyse the beta coefficient before they invest in any new ventures because it helps to measure the risk-adjusted rate of returns. Beta coefficient measures the systematic risk which is the market risk, unpredictable and impossible to avoid.

You might be interested in
Describe at least two non-discretionary expenses that you expect to have at some point in your life.
ad-work [718]

Answer:

Non-Discretionary Expenses means payments made to third parties on account of: (a) mandatory payments of monthly debt service (but not payment of principal or interest at or after maturity) required under Loan Documents evidencing debt of the Venture or any Subsidiaries; (b) Emergency Expenses; (c) other non-

Explanation:

3 0
3 years ago
The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a. Calculate the required rate of retur
svet-max [94.6K]

Answer:

a) The required rate of return is 14.75%

b) The expected return on this stock is 16% which is more than its required rate of return 14.75%, thus it is underpriced.

Explanation:

a)

Using the SML equation, we can calculate the required rate of return (r) of a stock.

r = rFR + β * (rM - rFR)

r = 6% + 1.25 * (13% - 6%)

r = 0.1475 or 14.75%

b)

The SML shows the return that is required on a security based on the risk is carries. Using SML we calculate the required rate of return which is the percentage return that investors require a security to provide.

If the expected return is greater than the required rate of return which means that security is expected to provide more than is required then the security is underpriced.

The expected return on this stock is 16% which is more than its required rate of return 14.75%, thus it is underpriced.

5 0
2 years ago
Steve is preparing a market analysis for the joneses and has selected three comparable properties. how many adjustments should s
zzz [600]

For the Joneses, Steve is putting together a market analysis and has chosen three comparable homes. Steve should Zero Adjustment alter the joneses' proper behavior in any way.

Sensors and instruments must produce an output that is a precise, predictable, and repeatable function of their input in every measurement setting. A 0 - 10 Bar pressure transmitter, for instance, might have a 0 - 10 V output that, starting with 0 V output for a 0 Bar pressure measurement, corresponds to its 0 - 10 Bar measurement range in a linear manner. To make sure that its output is indeed 0 V for a 0 Bar input, the transmitter must be calibrated. When this isn't the case, there needs to be a way to alter, or "zero," the output. The usage of an electronic gadget.

Learn more about Zero Adjustment here

brainly.com/question/5019807

#SPJ4

7 0
11 months ago
Also, national saving is the income of the nation that is left after paying for . Therefore, national saving (S) is defined as:
mestny [16]

National saving is the nation's income that is left after paying for current consumption and government purchases, that is S = Y-C-G.

What is national saving?

National saving (saving) is the portion of the economy's total income that is left over after paying for consumption and government expenditures. individual saving the amount of money that households have after paying for expenses like taxes and expenditures.

How does national savings affect our economic growth?

Larger investments resulting from stronger GDP growth would be produced by an increase in overall savings. The high savings rates have the effect of increasing capital and boosting the nation's economic growth.

Learn more about national saving:  brainly.com/question/15109837

#SJP4

6 0
2 years ago
What did the Supreme Court decide about the use of prayers to open government meetings in 2014?
harkovskaia [24]

Answer:

The Supreme Court decided that the use of prayers to open government meetings in 2014 is constitutional and that such meetings can hold, even if it clearly favors one faith, provided that there is no attempt to harass, intimidate, or coerce other religion believers.

5 0
2 years ago
Other questions:
  • A set of sweater prices are normally distributed with a mean of 585858 dollars and a standard deviation of 555 dollars.What prop
    10·1 answer
  • Vandy Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance
    5·1 answer
  • Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. Paid $89,000 cash for a n
    15·1 answer
  • When school districts are funded by local taxes only, the likelihood of disparities in funding goes up.
    12·1 answer
  • Carl has a checking account. He'd like to find out as soon as his refund check from the IRS is deposited in his account. What sh
    12·1 answer
  • Dr. Byron offers two possible solutions to sleep problems. If you had a child that would not sleep, which solution do you think
    14·1 answer
  • 25-6. Which of the following is a fundamental distinguishing feature of individual income taxes compared with payroll taxes? a.
    7·1 answer
  • If the nominal interest rate is 7 percent and the real interest rate is -2.5 percent, then the inflation rate is Group of answer
    14·1 answer
  • Explain how other income streams such as photography and merchandise will be useful for the business. (8)
    9·1 answer
  • Which best describes the role of financial planning?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!