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Varvara68 [4.7K]
4 years ago
14

Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli

o is 15%, and on the zero-beta portfolio it is 7%. What is the expected return on a portfolio with a beta of 0.7
Business
1 answer:
Fittoniya [83]4 years ago
6 0

Answer:

Expected return is 12.6%

Explanation:

Zero beta portfolio has no systematic risk. A zero beta portfolio has same expected rate of return as risk free rate. It does not effects with market change.

Using CAPM formula to calculate the expected return

Expected return = Risk free rate + Beta ( Market rate - risk free rate )

As we know

Expected return on zero beta portfolio = risk free rate

Expected return = 7% + 0.7 ( 15% - 7% )

Expected return = 7% + 0.7 ( 8% )

Expected return = 7% + 5.6%

Expected return = 12.6%

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Donatello Co. has identified an activity cost pool to which it has allocated estimated overhead of $9,600,000. It has determined
Luden [163]

Answer:

$9,600,000

Explanation:

The computation of overhead assigned to each product is shown below:-

Overhead rate activity = Total overhead cost ÷ Total number of activity

= $9,600,000 ÷ $800,000

= $12

So, the Total overhead assigned to each product = (Widgets × Overhead rate activity) + (Gadgets × Overhead rate activity) + (Targets × Overhead rate activity)

= ($200,000 × 12) + ($150,000 × 12) + ($450,000 × 12)

= 2,400,000 + 1,800,000 + 5,400,000

= $9,600,000

Therefore for computing the overhead assigned to each product we simply applied the above formula.

4 0
4 years ago
(q.d) have you been an appointee or employee of any regulator at any point over the past two years?
Anna [14]
<span>I have not been an appointee of employee of any regulator at any point in the past two years. I have worked as an independent contractor for a computer company for the last 5 years. Since a regulator company is one that usually involves systematic schemes and benefits to the employee, my emoployer would not fall into the category.</span>
4 0
3 years ago
For each of the scenarios below, determine whether you think it is likely that an employer could be discriminating against apers
mihalych1998 [28]

Answer: A young lawyer who just finished work on a multimillion -dollar development deal downtown is hired by an economic development firm in lieu of an older lawyer who works on litigation

This is not a case of discriminating against a person because of age, as we can see the young lawyer is better suited for a job in economic development as he already has worked on a development deal, where as the older lawyer is a litigator

A large retail outlet hires an 80-year-old woman to greet customers instead of a 30-year-old woman who has been greeting customers in other stores for a decade

This may be a case of age discrimination, because the 30 year old seems to be the better candidate, because she has experience in this work and will be more energetic than the 80 year old as well

The owner of a local, hip smoothie bar in a university town just fired a graduate student who had worked at the bar for three years and instead hired a college sophomore.

This may be a case of age discrimination because the employer is firing a graduate who has had 3 years of experience and hiring someone who hasn't graduated and has no experience

Explanation:

3 0
4 years ago
Suppose that Juan Carlos is filling out a survey that he received in the mail. The survey would do if the price of his favorite
GaryK [48]

Answer:

A. The definition of a market in determining the price elasticity of demand.

Explanation:

Price elasticity of demand is the height of responsiveness of demand or purchase to changes in price. It shows how consumers or buyers would react to the demand for a product when the price of their favourite brand increases.

Reaction of consumers in the market place is one of the determinants of price elasticity of demand. It tells how buyers will switch to different brand of products if the price of their favourite brand increases. It also shows how consumers will adjust their spending abilities if the price of all the brands are increased at the same time.

Alternatively, consumers would demand for the brand that falls within the limit of their spending.

4 0
3 years ago
On January​ 1, 2019, Castle Services issued $ 174 comma 000 of sixminus ​year, 12 ​% bonds when the market interest rate was 11
Marysya12 [62]

Answer: Debit: Interest expense $9900

Debit: Premium on bonds payable $540

Credit: Cash $10440

Explanation:

First and foremost, the cash payment will be calculated as:

= $174,000 × 12% × 6/12

= $174,000 × 0.12 × 0.5

= $10440

Interest expenses will be calculated as:

= $180000 × 11% × 6/12

= $180000 × 0.11 × 0.5

= $9900

Therefore, the journal entry to record the first interest​ payment would be:

Debit: Interest expense $9900

Debit: Premium on bonds payable $540

Credit: Cash $10440

8 0
3 years ago
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