1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.
-BARSIC- [3]

Answer:

Nexium & Associates Journal entries

March 1

Dr Accounts Receivable800

Cr Service Revenue 800

March 9

Dr Office Furniture1,060

Cr Office Supplies 160

Cr Accounts Payable1,220

March 15

Dr Accounts Payable1,220

Cr Cash1,220

March 23

Dr Electricity Expense430

Cr Accounts Payable430

March 31

Dr Salaries Expense850

Cr Cash850

Explanation:

The details given about Nexium & Associates are straight forward and required no further

adjustment.

8 0
3 years ago
Read 2 more answers
The first letter of a word that means a waiting line, as at a ticket counter, movie, or bank:
oee [108]
The answer to this question is: Q
Many business use the word Queque to indicate a wating line. The word first originated from a programming language.
The word is used to describe the task that must be processed after the data that is currently processed is finished, and many businesses adopt this word after it got popular.
7 0
3 years ago
Required information
Triss [41]

Answer:

1. Ending inventory = $3519

2. Cost of Goods Sold = $21030

3. Sales Revenue = $27279

4. Gross Profit = $6249

Explanation:

FIFO method of inventory valuation is whereby the stock that first comes into the business, leaves first. This is common in perishable inventory such as vegetables or fruits.

Jan 1. Beginning inventory: 53 units x $45 = $2385

Total

53 units x $45 = $2385

Apr 7. Purchase 133 units x $47 = $6251

Total

53 units x $45 = $2385

133 units x $47 = $6251

Jul 16. Purchase 203 units x $50 = $10150

Total

53 units x $45 = $2385

133 units x $47 = $6251

203 units x $50 = $10150

Oct 6. Purchase 113 units x $51 = $5763

53 units x $45 = $2385

133 units x $47 = $6251

203 units x $50 = $10150

113 units x $51 = $5763

1. Ending inventory = 502 - 433 = 69 hence,

69 units x $51 = $3519

2. Cost of Goods Sold =

[$2385 + $6251 + $10150 + (44 units x $51)] = $21030

OR $24549 - 3519 = $21030

3. Sales Revenue =

433 units x $63 = $27279

4. Gross Profit = Sales Revenue - Cost of Goods Sold hence,

$27279 - 21030 = $6249

4 0
3 years ago
Only variable costs can be differential costs. Do you agree? Explain.
Nostrana [21]

I do not agree with the given statement that is "Only variable costs can be differential costs.".

The difference in the costs of two alternative decisions is referred to as differential cost.

When a company is faced with several similar options, it must make a decision by selecting one and discarding the other.

Variable costs in cost accounting are costs that vary according to how much a company produces.

Variable costs are typically proportional to output.

As a result, the cost difference between two alternatives, rather than the fixed and variable nature of costs, is relevant for decision-making.

Hence, I disagree with the statement given in the question.

Learn more about variable cost:

brainly.com/question/9212451

#SPJ4

5 0
1 year ago
A group of brands that results from an information search that a buyer can choose among is referred to as the buyer’s __________
Gennadij [26K]

Answer:

The correct answer is "evoked set"

Explanation:

An evoked set is a term that refers to the capacity of a customer to choose a specific brand because the customer reminds a product of a previous marketing campaign that takes effect on him.  

The essence of marketing campaigns is to establish their business brand firmly on the market.  

Example: When a person purchases a specif brand because it appeared on the tv, radio, newspaper... Sometimes the customer doesn't know why he chose this brand, just know that he likes it.  (Probably for a marketing campaign)

3 0
3 years ago
Other questions:
  • If your company’s product is dry soup mixes and canned soups, would a multidomestic strategy, a transnational strategy, or a glo
    13·1 answer
  • As a result of the rising interest rates in this example, Businesses choose to reduce their Investment Spending by $_________ bi
    5·1 answer
  • Alex paid $600 to Rita, his ex-wife, for child support. Under the terms of the divorce decree, Alex claims the dependency exempt
    5·1 answer
  • Many organizations are adapting to the environment by developing more of a(n) _____ relationship rather than a(n) _____ relation
    8·1 answer
  • Union Local School District has bonds outstanding with a coupon rate of 4.5 percent paid semiannually and 20 years to maturity.
    13·2 answers
  • Jeff, an employee at Citrus Inc., hears about a change in the company's leave policy from one of his coworkers and shares this i
    13·1 answer
  • Analyzing Financial Statement Effects of Bond Redemption Dechow, Inc., issued $750,000 of 8%, 15-year bonds at 96 on July 1, 200
    10·1 answer
  • Which company provides business credit rating services for businesses looking o finance loan through bank????? I put the picture
    10·1 answer
  • ______ is when a firm enters a different business in which it can benefit from leveraging core competencies, sharing activities,
    8·1 answer
  • the determination of whether a corporate director or officer has met her duty of care is measured in hindsight.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!