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iragen [17]
3 years ago
14

For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return for a security with a beta c

oefficient of 1.5?
Business
1 answer:
adoni [48]3 years ago
3 0

Answer:

14%

Explanation:

required rate of return = risk free rate of return + ( risk premium x beta)

5% + 1.5 x 6% = 14%

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An investor buys an 8% municipal bond in the secondary market on a 10% basis. The investor does not accrete the bond discount an
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Explanation:

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What is an advantage of an adjustable-rate mortgage?
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Maple Industries has 7 percent bonds outstanding that mature in thirteen years. The bonds pay interest semiannually and have a f
levacccp [35]

Answer:

A. 6.75%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

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5 0
3 years ago
Helène, an industrial sales representative, bought a cellular phone to use if she ever had car trouble while traveling between a
snow_tiger [21]

Answer:

Safety Needs

Explanation:

If Helène, an industrial sales representative, bought a cellular phone to use if she ever had car trouble while traveling between appointments. The level of Maslow’s need hierarchy that Helène is addressing is Safety Needs

It would have been 'Esteem needs' if Helene was just buying a phone to be in the same class with her friends or she is changing her phone to reflect her class.

However Helene is buying this phone because she wants to keep appointments which falls in the category of employments and hence is a 'Safety need'.

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8 0
3 years ago
On January 1, ABC, Inc., issued $100,000 of 10%, 5-year bonds, for $92,280. Interest is due semiannually. When ABC records the f
Rina8888 [55]

Answer:

A. The debit to Interest Expense will be greater because the market rate is greater than the stated interest rate.

Explanation:

The effective interest rate is the market rate which is real rate of interest payment after incorporating the compounding effect. When the effective interest rate is greater than the stated the bond will sell at discount. The stated interest rate determines the amount of interest borrower will have to pay. The effective interest rate lead to higher returns than stated interest rate.

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