LO 3 Chad's Chocolates is considering the purchase of a new candy press. The machine under consideration costs $17,550 and would
1 answer:
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Answer:
Following are the response to the given question:
Explanation:
For question 1:
The weighted average of each return is the expected return.
For question 2:
Standard deviation is a measured source of the square deviations from the mean via probability.
For question 3:
For point a:
For point b:
As per the CAPM:
In Option I:
When the beta of the stock exceeds 1.0, the change in the required rate of return must be higher than the increase in the premium of market risk. Beta is the degree to which stock return changes as market returns change.