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
Mandarinka [93]
3 years ago
11

The common stock of United Industries has a beta of 1.34 and an expected return of 14.29 percent. The risk-free rate of return i

s 3.7 percent. What is the expected market risk premium?
Business
1 answer:
n200080 [17]3 years ago
8 0

Answer:

7.90%

Explanation:

For this question, we use the Capital Asset Pricing Model formula that is presented below:

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

where,

The Market rate of return - Risk-free rate of return) is also known as the market risk premium

So, the expected market risk premium is

14.29% = 3.7% + 1.34 × expected market risk premium

10.59% = 1.34 × expected market risk premium

So, the expected market risk premium is 7.90%

You might be interested in
A supplier has contracted to deliver halloween costumes to a party supply store by october 15th. however, due to a natural disas
olga nikolaevna [1]
I think you would have to do math to find the answer\
3 0
2 years ago
During 2018, the balboa software company incurred development costs of $2,000,000 related to a new software project. of this amo
riadik2000 [5.3K]
5000000 totally cost
6 0
3 years ago
What are the basic safety guidelines for using hand tools
Goryan [66]
ALWAYS WEAR EYE PROTECTION.
Wear the RIGHT SAFETY EQUIPMENT for the job.
Use tools that are the RIGHT SIZE & RIGHT TYPE for your job.
Follow the correct procedure for using EVERY tool.
Keep your cutting tools SHARP and in good condition.
DON'T work with OILY or GREASY hands.
7 0
2 years ago
Opportunity costs at a manufacturing company are not part of manufacturing overhead. True or false?.
Bess [88]

It is true that Opportunity costs at a manufacturing company are not part of manufacturing overhead.

<h3>What is Opportunity costs ?</h3>

Opportunity costs can be described as the term that represent the potential benefits which  individual, investor, misses out in the process of choosing one alternative over another.

Because opportunity costs are unseen  can be easily overlooked, therefore, in this case, It is true that Opportunity costs at a manufacturing company are not part of manufacturing overhead.

Learn more on Opportunity costs at:

brainly.com/question/1549591

#SPJ1

6 0
1 year ago
Match each economic scenario with the correct economic term.
kkurt [141]

Answer:

The answer is:

1 - Underutilization

2 - Efficiency

3 - Unattainability

Explanation:

Efficiency in economics means a situation in which all resources are optimally distributed to serve each entity in the best way while minimizing waste and inefficiency.

Underutilization in economics is also a a situation in which lesser resources are being utilized than the economy is capable of utilizing.

Unattainability is a situation in which what one to accomplish or achieve is not possible.

1 - Underutilization

2 - Efficiency

3 - Unattainability

6 0
3 years ago
Other questions:
  • Goode Inc.'s stock has a required rate of return of 13.50%, and it sells for $15.00 per share. Goode's dividend is expected to g
    13·1 answer
  • Payday loans are very short-term loans that charge very high interest rates. You can borrow $400 today and repay $476 in two wee
    9·1 answer
  • Many customers have expressed a preference for local produce in season. Andy and Scott form partnerships with local farmers to e
    15·1 answer
  • What does trip planning help reduce
    8·2 answers
  • Higado Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by sto
    5·1 answer
  • On October 1, 20X3, Green Corporation paid $450,000 for all of Yellow Company's outstanding common stock. On that date, the book
    6·1 answer
  • What is the main determinant of profit
    6·1 answer
  • Zetatron is an all-equity firm with 100 million shares outstanding, which are currently trading for $7.50 per share. A month ago
    11·1 answer
  • Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: S
    9·1 answer
  • B. the budgeted indirect-cost driver rate for y based on the number of machine-hours is in excess of x by ________per machine ho
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!