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inysia [295]
4 years ago
6

Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true, assuming the CAPM is correct. a

.Stock A would be a more desirable addition to a portfolio then Stock B. b.In equilibrium, the expected return on Stock B will be greater than that on Stock A. c.When held in isolation, Stock A has more risk than Stock B. d.Stock B would be a more desirable addition to a portfolio than A. e.In equilibrium, the expected return on Stock A will be greater than that on B.
Business
1 answer:
serious [3.7K]4 years ago
8 0

Answer:

E.In equilibrium, the expected return on Stock A will be greater than that on B.

Explanation:Beta is a measure used in the stock marketing to describe how volatile a stock is compared the the overall market. A stock with a Beta greater than one signifies that a share is more volatile than the overall market, while a Beta less than one signifies that the market is more volatile than the stock.

IN EQUILIBRIUM, STOCK A WITH A BETA GREATER THAN ONE WILL BE MORE PROFITABLE AND GENERATE MORE INCOME THAN STOCK B WHICH HAS A LOWER BETA THAT IS LESS THAN ONE.

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Which would be a negative externality of increased satellite usage worldwide?
Digiron [165]
<span>The correct option is A. One of the disadvantages of satellite usage is the cluttering of the earth orbital with hazardous debris. Satellite usage has some other disadvantages, these include: high cost, unreliable signal, propagation delay and repair. It is extremely difficult to repair a damaged satellite.</span>
3 0
4 years ago
Your company will generate $47,000 in annual revenue each year for the next seven years from a new information database. If the
Alla [95]

Answer:

The answer is $252415.91

Explanation:

Solution

Now

A step bu step solution is provided below in showing the present value of the savings

Given that:

Year        Annual Revenues          Calculations           Present value

1                   $47000                    $47000 / (1.071)^1         $43884.22

2                   $47000                   $47000 / (1.071)^2        $40975

3                  $47000                   $47000 / (1.071)^3        $38258.63

4                  $47000                   $47000 / (1.071)^4        $35722.35

5                 $47000                   $47000 / (1.071)^5        $33354.2

6                  $47000                   $47000 / (1.071)^6        $31143.04

7                  $47000                   $47000 / (1.071)^7         $29078.47

Total present value                                                        $252415.91

Hence the current or present value of the savings is $252415.91

7 0
4 years ago
Geraldo is talking about his new job with his brother. He says he likes this job better than his previous jobs because now he fe
Dafna11 [192]

Answer:

a. Esteem.

Explanation:

Geraldo is talking about his new job with his brother. He says he likes this job better than his previous jobs because now he feels respected. He has always felt a need to feel this way at work, and now he finally does. Geraldo is describing how his job meets his need for esteem. This can be well defined by the Maslow’s Theory  which is also known as “Hierarchy of Needs Theory”. Maslow recognized that every human contains the hierarchy of five needs as illustrated below.  

1: Physiological or Biological Needs. These needs include hunger, thirst, accommodation, sexual needs, and other physical needs.

2: Safety Needs. These needs consist of safety and security from physical and psychological damage.

3: Social Needs. Need for love, association, attachment, acceptance, relationship and friendship.

4: Esteem Needs. Internal elements like <u>self-respect,</u> <u>acquirement, and independence,</u> and external elements such as rank, identification, attention and acceptance.

5: Self-actualization Needs. The urge to become what a person is capable of becoming, that contains proliferation, attaining our potential, and self-realization.

4 0
3 years ago
Read 2 more answers
A company purchased 100 units for $30 each on january 31. it purchased 400 units for $20 each on february 28. it sold a total of
PolarNik [594]
<span>The answer is "$900".

A company purchased 100 units for $30 each on January 31.
</span><span>it purchased 400 units for $20 each on February 28.</span><span> 
it sold a total of 470 units for $110 each from march 1 through December 31.
method used = </span><span> last-in, first-out inventory costing method
it means last 400 units from February and 70 units from January were sold.
So, only 30 units left from January that are for $30 each.
Thus, </span><span> the amount of ending inventory on December 31 = 30 x $30 =$900</span>
7 0
3 years ago
Nouveaux Co. was incorporated at the beginning of this calendar year. Its articles of incorporation authorize 500,000 shares of
neonofarm [45]

Answer:

D) 270,000

Explanation:

The computation of the outstanding number of shares is shown below:

= (Issued shares - treasury shares)  × stock split ratio

= (100,000 shares - 10,000 shares) × 3

= 90,000 shares × 3

= 270,000 shares

Simply we deduct the treasury stock from the issued shares and then multiply it by the stock split ratio so that the correct amount of outstanding shares can come

7 0
3 years ago
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