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klio [65]
3 years ago
13

Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. Suppose also that the expected re

turn required by the market for a portfolio with a beta of 1 is 12%. According to the capital asset pricing model: (Leave no cells blank - be certain to enter "0" wherever required.) What is the expected return on the market portfolio?
Business
1 answer:
evablogger [386]3 years ago
3 0

Answer: Expected Return = 12%

Explanation:

Yield on short-term government securities = 4%

The expected return required by the market for a portfolio with a beta of 1 = 12%

Now, according to the capital asset pricing model:

Expected Return = Risk-free rate + Beta × (expected return on the market - risk-free rate)

= 4 + 1 (12 - 4)

= 12%

∴ The  expected return on the market portfolio is 12%.

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The work component at the lowest level of the WBS for which cost and duration can be estimated and managed is called the ______:
mel-nik [20]

Answer:

The answer is Work Package.

Explanation:

Work Package is the work component at the lowest level of the work breakdown structure(WBS), for which cost and duration can be estimated and managed; beyond this level, further decomposition will not be done.

Work packages are the primary input to identify activities' process. They are planned by way of identifying activities under them.

5 0
4 years ago
A rise in the foreign interest rate will Group of answer choices
Margaret [11]

Answer:

raise the value of foreign‑currency put options and lower the value of foreign‑currency call options

Explanation:

Options are the ability of an investor to buy or sell an asset. A call option is the choice to buy an asset at a particular price on or before a particular date.

A put option is the choice to sell an asset on or before a particular date.

As foreign interest rate increases and exchange rate is constant, the value of the foreign currency decreases therefore resulting in a decrease in value of call options.

This also results in an increase in value of put options

4 0
3 years ago
Zola borrows $1000. To repay the amount, she makes 12 equal monthly payments of $95. Compounding is done monthly. Determine nomi
Verdich [7]

Answer:

Effective monthly rate 2.076%

Yearly nominal rate: 24,912%

Explanation:

In excel we have to specify the number of period. The amount we borrow and the payment we are doing This should be negative as represent a cash outflow.

This is solving for the rate of the annuity for 95 of 12 months that discounted at X rate gives 1,000 as the present value:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

95 \times \frac{1-(1+r)^{-10} }{rate} = 1000\\

we write on A1

=RATE(12;1000;-95)

and we will receive 2.076% as answer

<em><u>Now to convert into nominal:</u></em>

2.076 x 12 = 24,912%

4 0
4 years ago
If you wanted to make sure a company has enough money available to pay ts
vovikov84 [41]

Answer:

D

Explanation:

The cash flow statement, as the name implies, report the use of company's real cash use in three area: investing, operating and financing activities as well as cash available at the beginning of the period and the end of the period as the result of three activities mentioned above.

3 0
3 years ago
The SP Corporation makes 49,000 motors to be used in the production of its sewing machines. The average cost per motor at this l
Lerok [7]

Answer:

Savings in additional cost as result of making      $154,350.00

Explanation:

The relevant costs for this decision would be the variable cost of production and the external cost of purchase.

Unit variable cost of internal production  

= 10.80 + 9.80 + 4.10 = $24.7

Variable cost of making ( $24.7  × 49,000)       =  1,210,300.00  

Variable cost of Buying     ($27.85  × 49,000)  =   <u>1,364,650.00</u>  

Savings in additional cost as result of making      <u> 154,350.00</u>

Note that the fixed cost is irrelevant for the purpose of the make or buy decision . This is so because they would be incurred either way. Hence, they are not to be considered for the analysis

3 0
4 years ago
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