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alukav5142 [94]
3 years ago
9

The Elvis Alive Corporation, makers of Elvis memorabilia, has a beta of 2.35. The return on themarket portfolio is 12%, and the

risk-free rate is 2.5%. According to CAPM, what is the riskpremium on a stock with a beta of 1.0?
Business
1 answer:
dalvyx [7]3 years ago
6 0

Answer:

Risk-free rate (Rf) = 2.5%

Market return (Rm) = 12%

Beta (β) = 1.0

Risk-premium = Market return - Risk-free rate

                       = 12  - 2.5

                       = 9.5%

Explanation:

Risk-premium is the difference between market return and risk-free rate.

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South Korea has developed amazingly, with huge corporations making vast amounts of money and giving everyone there a high standa
patriot [66]

Answer: Uneven Development

Explanation:

South Korea is one of the success stories of the last century. After the Korean War devastated large parts of the Korean peninsula, foreign aid poured in and the people embraced development fully. This led to the development of large corporations such as Samsung making vast amounts of money and giving everyone there a high standard of living.

Guatemala on the other hand has been ravaged by poverty and poor living conditions for a long time resulting from a bloody civil war that lasted for decades. This led to gangs been formed to compete for resources as well as illegal activities being carried out such as drug trafficking. This only made things worse.

These are 2 countries are a prime example of how countries in the world are experiencing Uneven Development. How in one nation the standards of living are high and people are safer but on the same planet and in another nation people are living in abject poverty and fearing constantly for their lives.

7 0
3 years ago
Melissa is an early-maturing girl. compared to her late-maturing friends, we can expect melissa: to have a higher self-esteem. t
padilas [110]
To complete the statement above, it is best to describe Mellisa to engage in early sexual experiences, it is because hormones starts changing at this stage where it is usually active. In terms of having high self esteem, it is incorrect because early maturing girls tend to have low self esteem and they tend to be unsatisfied with their body.
5 0
3 years ago
Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and round your final answer
Valentin [98]

Answer:

Stated Rate    No. of Times Compounded     Effective Rate (EAR) %            

   11.85%                    Semiannually                             12.2 %

   12.37%                    Monthly                                      13.1%

   110.27%                    Weekly                                       10.8%

   13.54%                    Infinite                                        14.5%

Explanation:

EAR = ( 1 + ( APR / m )^m)-1

Semiannually

m = 12 / 6 = 2

0.1220 = ( ( 1 + ( APR / 2 ) )^2) - 1

0.1220 + 1 = (1 + ( APR / 2 ) )^2

1.1220 = ( 1 + ( APR / 2 ) )^2

\sqrt{1.1220} = \sqrt{( 1 + ( APR / 2 ))^2}

1.059 = 1 + ( APR / 2 )

1.059 - 1 = APR / 2

0.059 x 2 = APR

APR = 0.1185 = 11.85%

Monthly

m = 12  / 1 = 12

0.1310 = ( ( 1 + ( APR / 12 ) )^12) - 1

0.1310 + 1 = (1 + ( APR / 12 ) )^12

1.1310 = ( 1 + ( APR / 12 ) )^12

APR = 12.37%

Weekly

m = 52

0.1080 = ( ( 1 + ( APR / 52 ) )^52) - 1

0.1080 + 1 = (1 + ( APR / 52 ) )^52

1.1080 = ( 1 + ( APR / 52 ) )^52

APR = 10.27%

Infinite

m = 20,000

0.1450 = ( ( 1 + ( APR / 12 ) )^12) - 1

0.1450 + 1 = (1 + ( APR / 12 ) )^12

1.1450 = ( 1 + ( APR / 20,000 ) )^20,000

APR = 13.54%

3 0
3 years ago
Calculate Producer Surplus if Reservation Price=20, Price=8, & Quantity=10.
Pavel [41]

C. 60  
Explanation: 
Producer's Surplus means the value producer derives from selling goods. For example, if producer is willing to sell the product for a price 8 but consumers are willing to pay a higher price, let's say 20, then producer achieves a surplus of 12 per unit. Let's calculate the producer's surplus -   
As per question, Reservation Price (RP) =20, Price (P) =8, & Quantity (Q) =10  
The formula for Producer Surplus (PS) is as follow: 
 PS = 1/2 (RP - P) x Q 
= 1/2 (20-8) x 10 = 60
4 0
3 years ago
Testbank Multiple Choice Question 100 Bramble Corp. purchased machinery on January 2, 2015, for $880000. The straight-line metho
ValentinkaMS [17]

Answer:

33,585.71

Explanation:

5 0
3 years ago
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