Answer:
1.
r market = 0.12 or 12%
2.
r stock = 0.12 or 12%
3.
r Stock = 0.169 or 16.9%
Explanation:
The required rate of return can be calculated using the CAPM or Capital asset pricing model equation. The formula for required rate of return under this model is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the risk premium on market
- r represents the required rate of return
1.
The beta of the market is always considered to be 1. Thus, the required rate of return on market would be,
r market = 0.05 + 1 * 0.07
r market = 0.12 or 12%
2.
For a stock whose beta is 1.0, the required rate of return would be same as that for market. So, the required rate of return for a stock with a beta of 1.0 is,
r Stock = 0.05 + 1 * 0.07
r Stock = 0.12 or 12%
3.
The required rate of return for a stock with a beta of 1.7 is,
r Stock = 0.05 + 1.7 * 0.07
r Stock = 0.169 or 16.9%
Answer:
Explanation:
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<span>Policy officers should try to de-escalate the situation to avoid violence whenever possible. Therefore, officers should avoid aggressive approaches or intimidation and should instead be non-confrontations. Physical force should be reserved as an absolute last resort.</span>
Answer:
2. advertising is ineffective because consumers already know what they want.
Explanation:
Consumer sovereignty is the idea that it is consumers who influence production decisions because they decide what to buy by checking to see that their expectations are meet. Production of goods is designed towards meeting the needs of the consumers. The consumers select what they want to buy by the checking if the good fulfills their needs and wants.
Answer:
O will increase and output and price level will increase as well.
Explanation:
If workers are more educated, the productivity of the country will increase, increasing total output. As investment in training increases, so thus the workers' capacity to perform more efficiently. Also, when the demand for better (or more) trained workers increases, the salary level will also increase. As workers gain training and/or experience, their salaries increase, e.g. on average, a person with a college degree earns much more than someone with just a high school degree. This increase in the level of salaries will lead to an increase in the general price level.
