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2 years ago

If the market risk premium increased to 6%, what would happen to the stock's required rate of return

Business

1 answer:

Inessa [10]2 years ago

7 0

Answer:

13%

Explanation:

As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-

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

11% = 7% + Beta × 6%

Beta = 1

now If the market risk premium increased to 6% so,

The required rate of return = 7% + 1 × 6%

= 13%

Therefore for computing the required rate of return we simply applied the above formula.

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Treasury Bonds are _______.A. liquid, but not a store of value. B. a store of value, but not liquid. C. both liquid and a store

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Answer:

C. both liquid and a store of value.

Explanation:

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3 years ago

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Answer:

Explanation:Answer:

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3 years ago

Paid to prem rs1400 and settled his account

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I don’t understand what you are trying to say or what your question is?

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2 years ago

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the desig

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Answer:

Option (A) is correct.

Explanation:

Following will be the definitions :

Efficiency = (Actual output ÷ Effective capacity) × 100

Utilization = (Actual output ÷ Design capacity) × 100

Therefore,

Efficiency of the system:

= (950 ÷ 1050) × 100

= 90.47% ( 90.5% rounded to one decimal point)

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3 years ago