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hichkok12 [17]
3 years ago
5

The​ risk-free rate is 3.4​% and you believe that the​ S&P 500's excess return will be 11.9​% over the next year. If you inv

est in a stock with a beta of 1 ​(and a standard deviation of 30​%), what is your best guess as to its expected excess return over the next​ year?
Business
1 answer:
VashaNatasha [74]3 years ago
5 0

Answer:

So since our Risk was "1.2 times" to the Risk of Market Hence Out Expected Return would also be 1.2 times.

Explanation:

Before Answering the Question , let us Understand some Important terms in simple language :

Market Excess Reture : it is basically that how much Market Return will be "Over & Above" Riskfree Rate

Beta : it shows that How much times is Risk of Our Stock in Comparison to that of Market . So We would be Expecting "that much times" Excess Return from that of "Market Excess Return"

?Now in Our Question it is Given that

Expected Excess Market Return (Rm - Rf) over next year = 11.9%

Beta of pur Stock = 1.2

\therefore Our Expected Excess Return over next year = Beta * Expected Excess Market Return

= 1.2 * 11.9%

= 14.28 %

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cluponka [151]

Answer and Explanation:

The Journal entries are shown below:-

1. Salary Expense $1,500

          To Salary Payable $1,500

(Being salary expense is recorded)

Here we debited the salary expenses as it increased the expenses and we credited the salary payable as  it also increased the liabilities

2. Salary Expense Dr, $2,100

   Salary Payable Dr, $1,500

              To Cash $3,600

(Being cash paid is recorded)

Here we debited the salary expenses and salary payable as it increased the expenses and decreased the liabilities  and we credited cash as it reduced the assets

7 0
3 years ago
If the supply of person-hours in this market shifts to the right, then the equilibrium wage will ______ and the equilibrium numb
abruzzese [7]

If the supply of person-hours in the market shifts to the right, then the equilibrium wage will <u>fall</u> and the number of person-hours will <u>increase</u>.

The equilibrium wage price is at the intersection of the supply and demand for labor. Personnel is hired as much as the factor where the extra value of hiring an employee Is equal to the extra income revenue from selling their output.

Labor market Equilibrium, the actual salary, and the equilibrium quantity of exertions traded are decided by the intersection of labor supply and labor call for. on the equilibrium actual wage, the amount of hard work provided equals the quantity of labor demanded.

A person's labor supply curve marks out the number of hours they are willing to work at one-of-a-kind wages, the equal manner that a vendor's supply curve marks out how a great deal they are inclined to promote at exceptional costs.

Learn more about the supply curve here brainly.com/question/11717727

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4 0
1 year ago
Saturn Industries purchased and consumed 64,000 gallons of direct material that was used in the production of 17,000 finished un
Nikitich [7]

Answer:

The actual price = $1.08

Explanation:

The standard material price can be worked out as follows:

<em>Step 1: Work out the standard price of material  using the material usage variance</em>

Standard price = Material usage variance/(standard quantity of material - actual quantity)

Standard quantity of material = standard qty per unit × actual production

                                              = 4 × 17,000 =68,000

Standard price =  2,800/(68,000-64,000)= $0.7

<em>Step 2 : Work out the Actual material price using the material price variance</em>

Material price variance = (Standard price - Actual price )× Actual quantity of material

6,400 =  (y - 0.7) ×  17,000

6400 = 17,000y  - 11,900

17,000 y = 6,400 + 11,900

y = 18,300/17,000= 1.08

The actual price = $1.08

5 0
3 years ago
If a competitive firm can increase its profits by increasing its output, then the firm's:
Basile [38]
If the firm can increase its profit by increasing its output then the firm is not producing at where the marginal cost is equal to the marginal revenue. A profit-maximizing firm in a competitive market will produce its output at the point in which MC=MR. 
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3 years ago
Relish Corp. is a famous fast food chain in the United States. However, increasing competition affects the company's market. Nic
Gwar [14]

Answer:

Participative leadership style

Explanation:

Path goal theory is a  leadership theory that specifies the leadership style that should be used in an organization to achieve a goal based on the employees and the working environment. The following steps are to be taken based on the path goal theory:

  1. Determine the employee and environmental uniqueness based on their needs.
  2. Selecting a leadership style and adjusting this style based on the employees need.
  3. Focusing on how to motivate the employee to achieve the goal

Participative leadership style is a style in which leaders involves their subordinates by asking them for suggestions before making a decision. This style is best used when subordinates are highly involved and trained.

8 0
3 years ago
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