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inysia [295]
3 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]3 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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Frankâ Pianki, the manager of an organic yogurt processing plant desires a quality specification with a mean of 18.0 âounces, an
aleksley [76]

Answer: 0.050

Explanation:

Mean = 18

USL = 18.6

LSL = 17.4

SD = 1.25

Cpk = Min{(mean - LSL / 3*sd), (USL - mean / 3*sd)}

= Min{ ( 18 - 17.4/ 3 * 1.25), (18.6 - 18 / 3 * 1.25)}

= Min { 0.05 0.05)

Cpk = 0.050

8 0
3 years ago
Countries that are partly industrialized but extract profits from poor countries to pass on to core countries are called?
Alenkasestr [34]

Semiperipheral countries. they have traditional values and institutions.

<h3>What is Semi-periphery countries?</h3>
  • According to world-systems theory, the industrialising, primarily capitalist countries that are situated halfway between the periphery and the core countries are the semi-periphery countries, also known as merely the semi-periphery.
  • Semi-periphery countries are frequently situated physically between core and peripheral regions as well as between two or more competing core regions.
  • They have organisational traits with both core countries and periphery countries.
<h3>What do you mean by semi-peripheral regions?</h3>
  • Semi-peripheral areas in world systems theory are those that are situated halfway between the core and the peripheral.
  • The organisational structure of these nations or areas is made up of both core and peripheral nations, and they are frequently situated geographically between two or more core nations.

Learn more about Semi-periphery countries here:

brainly.com/question/16191479

#SPJ4

5 0
1 year ago
Two isolated nations, Alphaland and Betaton, are considering opening their borders to trade with each other. Both nations consum
Artist 52 [7]

Answer:

5 tons of salt for 1 ton of pepper

10 tons of salt for 1 ton of pepper

Explanation:

Alphaland's opportunity cost of producing one ton of pepper = 80 ÷ 5

                                                                            = 16 tons of salt

Betaton's opportunity cost of producing one ton of pepper = 3 ÷ 1

                                                                            = 3 tons of salt

Alphaland's opportunity cost of producing one ton of salt = 5 ÷ 80

                                                                            = 0.0625 tons of pepper

Betaton's opportunity cost of producing one ton of salt = 1 ÷ 3

                                                                            = 0.3333 tons of pepper

Therefore, Betaton has a comparative advantage in producing pepper because it has the lower opportunity cost of producing pepper as compared to Alphaland. On the other hand, Alphaland has a comparative advantage in producing salt because it has the lower opportunity cost of producing salt as compared to Betaton.

Hence, Betaton is specialized in the production of pepper and Alphaland is specialized in the production of salt.

Trade is beneficial for both the nations when Alphaland buys pepper at a price lower than the 16 tons of salt and Betaton sells pepper at a price greater than 3 tons of salt.

Trade ratios:

5 tons of salt for 1 ton of pepper

10 tons of salt for 1 ton of pepper

7 0
3 years ago
The blurring of the lines separating the subsets of the financial industry started in the 1970s. 1990s. 1960s. 1940s.
telo118 [61]
The blurring of the lines separating the subsets of the financial industry started in the <span>1990s. The blurring of the lines that separate the subsets of the financial industry was initiated in the 1990s under the regime of the president of the US, Bill Clinton. At the time, the financial products were mainly loans, payment services, deposits, savings, and fiduciary services. </span>
5 0
3 years ago
B. An electronic store
lukranit [14]

In electronics Store there is an electronics items such as wire,etc

5 0
3 years ago
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