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Varvara68 [4.7K]
3 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]3 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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You deposit a $100 check from a friend in your account. A couple of days later, you buy $45.20 worth of groceries and pay with a
igomit [66]

Answer:

The correct answer is, $121.2

Explanation:

You went for grocery and paid the bill through check.

Amount of grocery purchased: $45.20

You check bounced and you owe bank $25 because you didn't have much balance in your account that you paid for the groceries.

Your bank did an additional transaction of debiting your account with $25 for the bouncing of your check.

Grocery store sent you the letter to tell that you owe them $25 for the bounced check

You will have to pay again $45.20

Money order fee: $1

So the amount that you actually spent on groceries would be:

$45.2(real grocery amount) + $25(you owe to bank for bouncing your friend's check) + $25( Your check bounced) + $25(grocery store charged due to bounced check) + $1(money order)

= $121.2

So you are actually charged $ 121.2 for the groceries.

5 0
4 years ago
If japanese autos surge in popularity in the united states, then this event is most likely to cause the japanese yen to?
romanna [79]

If japanese autos surge in popularity in the united states, then this event is most likely to cause the japanese yen to appreciate and the U.S dollar to depreciate.

<h3>What are the automotive industries in the Japan?</h3>

The automotive industry in Japan is considered as one of the most prominent and largest industries in the world. It is a major pillar of the country's economy.

Some of the major Japanese automotive manufacturers include Toyota, Nissan, Mazda, Subaru, Mitsubishi, Honda, Suzuki, Isuzu, Daihatsu, and Mitsuoka.

Basically, the automotive sector in Japan is the third-largest automotive producing industry in the world.

Learn more about automotive industries in Japan here:

brainly.com/question/23137181

#SPJ1

5 0
2 years ago
how could Government intervention to minimise affects of lack of demand in the tourism and international education sector of Aus
BlackZzzverrR [31]

<u>Explanation:</u>

The government reduces regulations on tourism activities. Tourism related companies are encouraged to establish their business in a better way by reducing the interest rates for these business. The government also funds tourism related activities such as trade events. funding is also provided for events, concerts, festivals and permanent visitor attractions that can be set.

To develop the international education sector Australian government has kept the education sectors open for business.Global networking is done by government to take international students and provide education facilities.

8 0
3 years ago
Chin needs more money in his net pay each month, so he plans to reduce his federal income tax deduction from 12% to 11%. His mon
Mila [183]

Answer:

$2891

Explanation:

If chine reduces his federal income deductions from 12% to 11%, the new federal income tax will be as below.

11% of $3500

= 11/100 x 3500

=0.11 x 3500

=$385.

Total deductions after this change will be

=$385 + $95 + $89 + $40

=$609

Net pay

=$3500- $609

=$2,891

8 0
3 years ago
Read 2 more answers
2. Alex, Becky, Cindy, Deanna and Elias form a general partnership, Glorious Jeans, to manufacture coffee-colored clothing. Alex
kari74 [83]

Answer:

Under the UPA ( uniform partnership act ) the partners share the profits of the business according to their contributions towards the business ( mostly financial contribution)

The UPA is used to address the issues of profit and loss sharing in a business partnership based on financial contribution towards the business and not based on service rendered to the business hence it won't work in this situation

Explanation:

Under the UPA ( uniform partnership act ) the partners share the profits of the business according to their contributions towards the business ( mostly financial contribution), the primary purpose of the uniform partnership act to to address certain in-formal or formal issue that was not addressed under the business agreement reached between the partners,

The reason why the UPA might not govern the sharing of the profits is because of the involvement of a partner who did not contribute towards the capital but contributes in terms of service. The UPA is used to address the issues of profit and loss sharing in a business partnership based on financial contribution towards the business and not based on service rendered to the business hence it won't work in this situation

4 0
3 years ago
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