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Amiraneli [1.4K]
3 years ago
15

Stock A's beta is 1.7 and Stock B's beta is 0.7. Which of the following statements must be true, assuming the CAPM is correct. a

. In equilibrium, the expected return on Stock A will be greater than that on B. b. Stock B would be a more desirable addition to a portfolio than A. c. When held in isolation, Stock A has more risk than Stock B. d. In equilibrium, the expected return on Stock B will be greater than that on Stock A.
Business
1 answer:
pochemuha3 years ago
8 0

Answer:

c. When held in isolation, Stock A has more risk than Stock B

Explanation:

Beta is the measurement of Company`s business risk. Therefore, a higher beta shows a higher risk and a lower beta shows lower risk.

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The railroad emits sparks from its engines which sometimes ignite fires on the farm. There is a 1/10 chance of a fire, and when
ale4655 [162]

Answer:

$5,000

Explanation:

$50,000 *1/10 = $5,000 cost per chance of fire occurring

6 0
3 years ago
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For each of the following transactions of Spotlighter, Inc., for the month of January, indicate the accounts, amounts, and direc
frez [133]

Answer:

Accounting equation is as follows:

        Assets               =               Liabilities                +       Stockholder's equity

(a) Cash  $3,940                Notes payable  $3940

(b) Cash  $4,630                                                             Common stock  $4,630

(c) Equipment $1,000

     Cash (-$200)               Notes payable(ST) $800

(d) Supplies $300

      Cash (-$300)

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7 0
3 years ago
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A price searcher a. faces a horizontal demand curve. b. is a seller that searches for the best location to sell its product. c.
Mazyrski [523]

Answer: The correct answer is "c. is a seller that has the ability to control to some degree the price of the product it sells.".

Explanation: A price searcher is a seller that has the ability to control to some degree the price of the product it sells.

5 0
3 years ago
In which situation would a banker's draft be used?
MrMuchimi

Banker's draft can be used when the person making the payment wants money to be

available in the receiving bank's account.

<h3>What is bank draft?</h3>

Banker's draft is a a form of cheque that is given to a customer at the bank either for a purchase payment.

It can also be brought to another bank for remittance, it serves as evidence for transactions.

Therefore, a banker draft can be used when the person making the payment wants money to be

available in the receiving bank's account.

Learn more on bank's draft here,

https://brainly.com/question/6906511

6 0
2 years ago
Do you think you should use a zero-based budgeting system? Explain why or why not.
Oksana_A [137]
Yes, because it gives you an opportunity to put forth money for the future on what to do with it. but only if you reach the zero at the end of the month. you can use it in many ways like emergency funds or an envelope system.
6 0
3 years ago
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