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tino4ka555 [31]
3 years ago
5

Investors expect the market rate of return this year to be 15.00%. The expected rate of return on a stock with a beta of 1.3 is

currently 19.50%. If the market return this year turns out to be 12.80%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Business
1 answer:
belka [17]3 years ago
6 0

Answer:

Expectation of rate of return on the stock is  16.64%

Explanation:

Ke=Rf+beta(Mrp-Rf)

Rf is unknown

Mrp is 15%

Ke is 19.5%

beta is 1.3

19.5%=Rf+1.3(15%-Rf)

19.5%=Rf+19.5%-1.3Rf

19-5%-19.5%=Rf-1.3Rf

0%=-0.3Rf

Rf=0%/-0.3

Rf=0%

By substituting the value of Rf in the original formula ,we can now calculate Ke when Mrp is 12.80%,beta is 1.3 Rf is 0%

Ke=0%+1.3(12.80%-0%)

Ke=0%+16.64%+0%

Ke=16.64%

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nika2105 [10]

Answer:

1. quickly describe large amounts of data

2. the stock is worth 15% more at the end of the year than at the beginning

3. 9.2%

Explanation:

Descriptive statistics helps to quickly describe large amounts of data because it simply involves using certain measurement tools to describe the data seen such that patterns emerge that will help in analyzing the data. Examples include, frequency tables and measures of variation like range and standard deviation.

When a stock has a 15% return, it means that the owner is getting 15% more than the amount that the stock cost them therefore showing that the stock is worth 15% more at the end of the year than at the beginning.

The return on the stock is;

= (4.75 - 4.35) / 4.35

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3 years ago
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AleksandrR [38]

Answer:

A). She will appear more responsible to future employers.

<u>Multiple choices</u>

A). She will appear more responsible to future employers.

B). She will be able to do the job better.

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Explanation:

A positive credit score is a result of responsible use of income against the debts incurred. It shows an individual is good at managing their personal finances. A negative credit score paints a bad picture of an individual. It communicates a lack of self-discipline in managing debts.

A positive credit score will portray Naomi as responsible in using her finances. Her employers will view her as good at managing money.

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Sunland Company purchases $50,400 of raw materials on account, and it incurs $61,300 of factory labor costs. Journalize the two
lisabon 2012 [21]

Answer:

A. Mar 31

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Cr Account pay $50,400

B. 31

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Cr Factory wages $61,300

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A. Since we were told that the company purchases the amount of $50,400 of raw materials on account this means that the transaction will be recorded as:

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Cr Account pay $50,400

B. Based on the information given we were told that the company incurs the amount of $61,300 of factory labor costs this means that the transaction will be recorded as:

31

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6 0
1 year ago
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Answer: Inelastic

Explanation:

Based on the information given, we would calculate the elasticity of demand which would be:

= (Change in Quantity / Change in Price) (Initial Price/ Initial Quantity)

Change in Quantity = 1800 - 2000 = -200

Change in Price = 50 - 40 = 10

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Elasticity of demand would then be:

= (-200/10)(40/2000)

= (-20)(0.02)

= -0.4

Since elasticity of demand is less than 1, it is an inelastic demand.

7 0
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