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valina [46]
3 years ago
12

Suppose you observe the following situation: Security Beta Expected Return A 1.16 .1137 B .92 .0984 Assume these securities are

correctly priced. Based on the CAPM, what is the return on the market
Business
1 answer:
lyudmila [28]3 years ago
3 0

Answer: 10.35%

Explanation:

The Capital Asset Pricing Model is used to calculate the expected return of a security with the expression

Expected return = Risk free rate + Beta ( Market return - risk free rate)

( Market return - risk free rate) is also known as the market premium and can be calculated by;

= \frac{Expected return on A - Expected return on B}{Beta for A - Beta for B}

= \frac{0.1137 - 0.0934}{1.16 - 0.92}

= 0.0153/0.24

= 6.375%

= 6.38%

Expected return A = Risk free rate + Beta A ( Market return - risk free rate)

0.1137 = Risk free rate + 1.16 (6.38%)

Risk free rate = 0.1137 - 1.16(6.38%)

Risk free rate = 3.97%

Market Expected return = Market Risk Premium + risk free rate

= 6.38% + 3.97%

= 10.35%

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neonofarm [45]

The answer to this question is to use the Geographic segmentation when stocking condiment merchandise.

<span>Geographic segmentation is dividing the market or consumers in terms of geography. An advantage of using geographic segmentation is business and companies would help large companies to segregate market and consider the differences of different countries. Also, in geographic segmentation it allows the business to expand because the company can have a marketing study on a specific area for using geographic segmentation.</span>

4 0
3 years ago
All of the following are true of the Human Development Index except:
irakobra [83]

Answer:

C. Ecology and the environment are strongly considered in the HDI calculations.

Explanation:

Human Development Index can be defined as a statistical tool used for summarily measuring human achievements, life expetancy, etc

All of the following are true of the Human Development Index (HDI);

I. The United States loses points on the HDI because it's education level and literacy rate are lower than countries like Norway and Canada.

II. Most countries that score very high on the scale are located in North America and Europe.

III. The HDI measures factors such as life expectancy, literacy, education level, and standard of living.

IV. Many low HDI countries are located in sub-Saharan Africa.

5 0
3 years ago
1. An expenditure for which the government receives no good, service, or resource in return.: An expenditure for which the gover
stellarik [79]

Answer:

1)Transfer payment

2)Firm

3)Public good

4)Property right

5)Factor market

6)Household

7)Circular flow diagram

8)Product market

9)Regulation

10) factor payment

Explanation:

1)An expenditure for which the government receives no good, service, or resource in return.:

(Transfer payment)

. 2. A privately owned organization that produces goods and services and sells them to others.:

( Firm)

3. A good or service that can be consumed by many people at once and that other people can't be prevented from using.:

( public goods)

4. A legal claim of owners

hip.: A legal claim of ownership

(Property right)

5. A market in which resources are exchanged for money.

(Factor market)

6. Consists of an individual or a group of people who live together and share income, such as you and your family.

(Household)

7. Models the interactions between key players in the economy.:

(Circular flow diagram)

. 8. A market in which goods and services are exchanged for money.:

(Product market)

9. A rule of conduct passed by federal, state, or local governments.:

(Regulation)

10. A payment for the use of a resource.:

( Factor payment)

3 0
3 years ago
Warby Parker, an online retailer for prescription eyewear, offers a free, try-on at home program for its customers. Customers br
VikaD [51]

Answer:

e. trialability

Explanation:

Trialability is the ability to give an idea, process, product, or system a trial before making a final decision.

It indicates the degree to which a product or innovation can be experimented by the customer before they finally buy.

Warby Parker has leveraged on this strategy by allowing customers browse frames on Warby Parker’s website and select five pairs they would like to try on before buying—or not. Warby Parker handles all the shipping costs and provides all the return packaging

7 0
3 years ago
In Theory Z, workers are expected to become specialists at what they do.
ioda

Answer:

False

Explanation:

Theory Z of motivation tries to blend the Japanese and American management practices. It is seen as an advancement of theory X and theory  Y motivation theories.

Theory Z emphasizes the need for employees to become generalists rather than specialists. It encourages employers to practice job rotations and continuous training to empower employees. As a result, employees will develop a variety of abilities and skills, which is beneficial to both the worker and the company.

5 0
3 years ago
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