Answer:
r = 0.09 or 9%
Explanation:
Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
r = 0.05 + 0.5 * (0.13 - 0.05)
r = 0.09 or 9%
Answer:
<em>C. Recording an item that should be recorded as an operating activity as an investing activity. </em>
Explanation:
<em>Hope it helped</em>
Answer:
16.16%
Explanation:
The formula to compute the expected rate of return is shown below:
-
Expected rate of return = (Weightage of Stock G × Expected Returns G) + (Weightage of Stock J × Expected Returns J) + (Weightage of Stock K × Expected Returns K)
= (16% × 10%) + (56% × 16%) + (28% × 20%)
= (0.16 × 0.1) + (0.56 × 0.16) + (0.28 × 0.20)
= 0.016 + 0.0896 + 0.056
= 0.1616
= 16.16%
Answer:
The statement which is correct and true is that the debt securities usually pay interest for the fixed period or year. Therefore, the correct option is B.
Explanation:
Debt securities are the securities which refer to a debt instrument like CD (Certificate of deposit, preferred stock, corporate bond and municipal bond, it is sold or bought among the parties.
It is also called as the securities which are fixed income, therefore, the statement which is correct is that these securities pay interest for a fixed period.
Answer: Storming stage
Explanation: In simple words, it refers to the stage in which conflict between members of a group starts happening due to arise of individual personalities. This is last and most crucial stage of team development process.
In this stage the performance of team starts declining due to lack of harmony and trust among the members of the team. In the given case, Roger's team has been facing conflict over the controlling issues ,hence, we can conclude that they are at storming stage of development.
