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WINSTONCH [101]
3 years ago
6

A stock has a beta of 1.28, the expected return on the market is 12%, and the risk-free rate is 4.5%. Using the CAPM, what is th

e expected return on this stock
Business
1 answer:
MatroZZZ [7]3 years ago
8 0

Answer:

14.10%

Explanation:

The calculation of expected return on this stock is shown below:-

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

= 4.5% + 1.28 × (12% - 4.5%)

= 4.5% + 1.28 × 7.5%

= 4.5% + 9.6%

= 14.10%

The Market rate of return - Risk-free rate of return) is also called as the market risk premium

hence, the expected rate of return is 14.10%

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You can lead a horse to water but you can't make it drink. How might this adage be relevant to expansionary monetary policy?
elena55 [62]

Answer:

The purpose of expansionary monetary policy is to increase the supply of money in the economy which would theoretically make it cheaper for people to borrow money to consume or for companies to borrow money for investment.

The whole thing therefore relies on people and companies borrowing. Sometimes however, monetary policy may work in increasing the amount of money in the economy but then a situation arises where people do not want to borrow and companies do not want to borrow for investment either because they do not think the economy is strong enough for expansion or for whatever other reason. .

They are being given cheaper access to money (led to the water) but they refuse to borrow and invest (can't be made to drink).

4 0
2 years ago
HOW MANY TIMES DOSE 3 GO INTO 42
Nitella [24]
Well, 42 divided by 3 = 14
so 14 would  be the correct answer
8 0
3 years ago
Read 2 more answers
An ad for Covenant Transport,a national trucking company,is on a page that is wider than the normal pages found in "Trucker's Co
Akimi4 [234]

Answer:

The correct answer is D) gatefold.

Explanation:

In gatefold advertising it refers to that information that is displayed on more than one sheet and that needs to be fully opened in order to see the message. Generally this type of advertising is shown in physical media such as magazines and newspapers, being the first most common. This strategy allows captivating the attention of the reader to make him think exclusively about what is being promoted, since there is no different distractor.

5 0
3 years ago
Suppose the baldwin company expands to other markets with good designs, high awareness and easy accessibility, what strategy wou
musickatia [10]
Let me help you!
Since you mentioned that Baldwin compamny will expand to another company with better edge (products etc.) to appear on top, that simply means they are actively competing against the company they are expanding to while employing blue ocean strategy.

Therefore, the strategy they are using is none other than BLUE OCEAN STRATEGY.
6 0
3 years ago
Read 2 more answers
What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance acc
Darina [25.2K]

Answer:

Insurance $4,800 (debit)

prepaid insurance $4,800 (credit)

Explanation:

In order to find out adjusting entries. firstly, we need to calculate the difference between prepaid insurance account and Insurance account.

That could be done by subtracting $3,550 from $8,350.

Difference = 8350-3550= 4800

6 0
3 years ago
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