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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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A new manager starts his work by talking with each member of his team, getting to know their strengths and weaknesses, and helps
wel

Answer: the correct answer is coaching leadership.

Explanation:

The Coaching Leadership Style is a relatively new and guiding leadership style. The leader has these skills when he is able to develop and improve the performance and competences of his employees. The basis of the Coaching Leadership Style is the dynamic interaction between the leader and the employee.

5 0
3 years ago
Explain what lower of cost or market means in regards to reporting merchandise inventory on the balance sheet.
Degger [83]

Answer and Explanation:

Inventory is an asset and is posted on the asset side of the balance sheet. As per accounting standards regarding inventory valuation, it can be either valued at historical cost or at market price, whichever is lower.

Historical cost is the cost at which asset was acquired. Market price is the price which would be received if the asset is replaced as on the date on which balance sheet is prepared. Inventory is valued at lower of the above mentioned costs.

4 0
3 years ago
Red Industries began operations on April 11th, 2022. Red purchased $2,100 of supplies, and a physical count showed that $400 of
schepotkina [342]

Answer:

Explanation:

The journal entry is shown below:

Supplies expense A/c Dr $1,700

                  To Supplies A/c $1,700

(Being supplies account is adjusted)  

The supplies expense is computed below  

= Purchase value of supplies - supplies on hand  at year end

= $2,100 - $400

= $1,700        

For recording, this given transaction we debited the supplies expense account as the remaining balance is transferred to supplies expense and credited the supplies account

8 0
3 years ago
The price of diamonds is high, in part because the majority of the world’s diamonds are controlled by a single firm. This is an
kirill115 [55]

Answer:

Option (b) is correct.

Explanation:

This is a case of monopoly market condition where there is a single firm operating the whole market. The price of the products is set by the single firm and the buyers in this market are price taker. The monopolist can earn normal profit, losses and abnormal profit in the short run and can earn normal profit and abnormal profit in the long run.

In our case, the price of diamonds is high because there is only single firm in the whole market and there is no other competitors in the market. That's why they are charging the higher prices.

5 0
3 years ago
General Motors increases the price of a model car produced exclusively for export to Europe. Which U.S. price index is affected?
alexira [117]

Answer: The GDP deflator

Explanation: The GDP(gross domestic product) deflator is a price index that is used to measure the prices of all the goods and services produced within an economy. The cars which are exported by General Motors are produced domestically within the United States of America and exported outside the country.

Any goods produced externally are not considered when determining the GDP deflator.

4 0
3 years ago
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