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
Mariulka [41]
3 years ago
8

A certain stock has a beta of 1.45. If the risk-free rate of return is 5 percent and the market risk premium is 8.5 percent, wha

t is the expected return of the stock
Business
1 answer:
sesenic [268]3 years ago
7 0

Answer:

Expected rate of return is 17.3%

Explanation:

Capital asset pricing model is used to calculate the expected rate of return for an investment on basis of its risk, market risk premium and risk free rate. The formula for the expected rate of return is:

Expected rate of return = Risk free rate + beta ( market risk premium )

Expected rate of return = 5% + 1.45 ( 8.5% )

Expected rate of return = 5% + 12.325%

Expected rate of return = 17.325%

You might be interested in
The government can shift or influence supply in a market by providing subsidies (money) to businesses or by taxing them heavily.
scoundrel [369]
I think it’s false , sorry if it’s wrong :(
5 0
3 years ago
If the Ford Focus is the cost​ object, classify each of the following costs as indirect or​ direct, respectively: property taxes
SSSSS [86.1K]

Answer: B

Explanation: Engines for the cars is a cost directly related to the Ford cars being produced. The property taxes and the janitors rates are indirect costs because they are general costs needed to run the business but are not directly linked to the production of the ford cars

8 0
3 years ago
New Keynesian economists critique rational expectations by arguing that short-term wage stickiness is brought about by a. the po
mylen [45]

Answer:

New Keynesian economists critique rational expectations by arguing that short-term wage stickiness is brought about by

b. imperfect information and efficiency wages.

Explanation:

The assumption in macroeconomic theories is that economic agents, households, and companies exercise rational expectations.  The New Keynesian economics posits that rational expectations have become distorted as a result of market failure, arising from asymmetric information and imperfect competition, thus questioning the ability of markets to self-regulate and self-correct.

8 0
3 years ago
When agent Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that:__________
laiz [17]

Answer:

Advertising a similar property can and does create interest in their property

Explanation:

In real estate agents need to effectively market properties in order to sell to consumers.

One way of doing this is by creating awareness in a given market about a particular property type.

When interest in a type of property is created it generates interest that will lead to more sales.

In the given scenario when Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that to capture a market they need to advertise even products that are similar.

As interest grows it will create a demand for that type of property

7 0
3 years ago
One of two office clerks in a small company prepares a sales invoice for $4,300; however, the invoice is incorrectly entered by
KIM [24]

Answer: <u><em>C. Using predetermined totals to control posting routines.</em></u>

Explanation:  A regulation total if developed for the agreement to be posted, then it should be set side by side with total of items posted to personal accounts. Therefore, The most adequate way to avert this kind of error is by applying predetermined totals to control stating the daily cycle.

<u><em>Therefore, the correct option in this case is (c)</em></u>

4 0
3 years ago
Other questions:
  • Each time a method is invoked, the system stores parameters and local variables in an area of memory, known as _______, which st
    10·1 answer
  • 1.Groups are characterized by mutual interaction and reciprocal influence.
    14·1 answer
  • Sandra has good credit and qualifies for a home loan. Sandra's loan could negatively affect her credit score if she _____.
    10·1 answer
  • If someone dies without a will, who handles the distribution of the person’s estate?
    9·1 answer
  • if you want to be able to compare different investments , which piece of information is the most helpful
    5·1 answer
  • Jennifer has $10 to spend on tomatoes and cheese. The price of a pound of tomatoes is $2 and the price of a pound of cheese is $
    6·1 answer
  • job cost journal entries prior to the beginning of 2016, lowe company estimated that it would incur $264,000 of manufacturing ov
    8·1 answer
  • What is one of the SMART guidelines that help develop objectives?
    6·2 answers
  • True/False
    7·1 answer
  • At an annual effective interest rate of 6.3%, an annuity immediate with 4N level annual payments of 1,000 has a present value of
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!