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9966 [12]
3 years ago
8

Stock A has a beta of 0.8, Stock B has a beta of 1.0, and Stock C has a beta of 1.2. Portfolio P has equal amounts invested in e

ach of the three stocks. Each of the stocks has a standard deviation of 25%. The returns on the three stocks are independent of one another (i.e., the correlation coefficients all equal zero). Assume that there is an increase in the market risk premium, but the risk-free rate remains unchanged. Which of the following statements is correct? Answers: a-The required returns on all three stocks will increase by the amount of the increase in the market risk premium. b-The required return on Stock A will increase by less than the increase in the market risk premium, while the required return on Stock C will increase by more than the increase in the market risk premium. c-The required return of all stocks will remain unchanged since there was no change in their betas. d-The required return on the average stock will remain unchanged, but the returns of riskier stocks (such as Stock C) will decrease while the returns on safer stocks (such as Stock A) will increase. e-The required return on the average stock will remain unchanged, but the returns of riskier stocks (such as Stock C) will increase while the returns of safer stocks (such as Stock A) will decrease.
Business
1 answer:
Marat540 [252]3 years ago
5 0

Answer:

b-The required return on Stock A will increase by less than the increase in the market risk premium, while the required return on Stock C will increase by more than the increase in the market risk premium.

Explanation:

Beta reflects the risk associated, as the beta is low, the expected risk is also low, accordingly return expected is also keeping all things constant.

When Beta is less than 1 it means the returns will be lower than market, accordingly for Stock A the return will increase but slower than the market risk.

Whereas, the Beta is more than 1 of Stock B and accordingly the risk is more but return will grow even faster as the risk volatility is high than the market risk.

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Answer:

It is deducted from the workers

Explanation:

All employers are required to deduct social security and medicare taxes from their employees' paychecks. The deducted amounts are remitted to the government through the social security administration authority.

Therefore, the funds for Social  Security and Medicare come from the employees' paycheck. It is the workers who contribute these funds from their income.

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3 years ago
What is a misdemeanor?
nasty-shy [4]

Answer:

D

Explanation:

In fact a misdemeanor is less bad than a felony

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Your investment banker has presented you with the following list of business characteristics of a small company your company is
wariber [46]

Answer:

A

Explanation:

The list contains more weaknesses than strengths

The list of weaknesses are:

Excess manufacturing capacity relative to market; If you are producing more than you are selling then its a weakness

Large inventories; that dont sell its a weakness

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Cost advantages; cost advantage against your competitors is an added strength

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3 years ago
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drek231 [11]

It should be noted that Manufacturers in the production-oriented marketing era at the turn of the 20th century were concerned with efficient  production, not with satisfying the needs of consumers.

<h3>What is production-oriented marketing era?</h3>

production-oriented marketing era can be regarded as era where the manufacturing services is increased.

During this time, the manufacturer are more concerned about production and nit efficient production and not about customer satisfaction.

Learn more about manufacturer at:

brainly.com/question/13171394

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