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Diano4ka-milaya [45]
3 years ago
15

Jonathan Crowley is a portfolio manager for a large pension fund. Last year his portfolio had an actual return of 12.6% with a s

tandard deviation of 13% and a beta of 1.3. The market risk premium for this period of time was 6% and the risk-free rate of return was 5%.82.
Based on the Capital Asset Pricing Model (CAPM), what is the required rate of return for this portfolio?
Business
1 answer:
ycow [4]3 years ago
5 0

Answer:

The required rate of return of the portfolio is 13.62%

Explanation:

The required rate of return is the minimum return that investors require to invest in a stock or portfolio. The required rate of return can be calculated using the CAPM formula for required rate of return. The formula is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • beta is the stock/portfolio's beta or measure of risk
  • rpM is the risk premium on market

r = 5.82% + 1.3 * 6%

r = 0.1362 or 13.62%

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Telfer, Inc. reported net income of $2.7 million in 2020. Depreciation for the year was $162,300, accounts receivable decreased
vovikov84 [41]

Answer:

See below

Explanation:

Computation of net cash provided by operating activities using the indirect method

Cash flow from operating activities

Net income

$2,700,000

Adjustments to reconcile net income

Add: Decrease in accounts receivable

$357,400

Less: Decrease in accounts payable

$296,500

Add: Depreciation expense for the year

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Net cash provided by operating activities

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5 0
3 years ago
What is the major reason(s) for consumer default on loans?
denis-greek [22]
<span>Major reasons for consumer default on loans can include: missed payments, either known or unknown. This has a negative effect on the consumer's credit score and can limit their chances to take out new lines of credit. A continuation of missed payments results in default. High interest loans are also a major reason for default.</span>
6 0
4 years ago
Cedar Designs​ Company, a custom cabinet manufacturing​ company, is setting standard costs for one of its products. The main mat
Snowcat [4.5K]

Answer:

Standard direct labour cost = $20.00   per hour

Explanation:

The direct labour costs represent expenditures incurred in respect of direct worker which can be traced to the product been produced. For example, the labour cost of machine operator saddled with production task.

The payroll cost is not a direct labour cost because payroll employed are not direct workers, also benefits are overheads related to direct workers

Standard direct labour cost = $20.00

5 0
3 years ago
Darren has developed a better type of medication vial for travelers. He is not sure how to develop a marketing program for his p
harina [27]

Answer:

The answer is: keyword analysis

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If you place a part of your summer earnings in a savings account, you are using money primarily as a
Flauer [41]

You are using money primarily as a : Store of value

Money as a store of value is something that maintains its worth both in the present and in the future, with money being one such commodity in modern.

When money is a store of value, it means that it is capable of being held such that it can increase our wealth and net worth. This is why it can be saved and used as a means of capital.

Other characteristics of money includes :

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Hence, you are using money primarily as a store of value if you place a part of your summer earnings in a savings account.

Learn more about functions of money here : brainly.com/question/25959268

6 0
2 years ago
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