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
dsp73
3 years ago
13

Laura has one risk-free asset and one risky stock in her portfolio. The risk-free asset has an expected return of 3.2 percent. T

he risky asset has a beta of 1.3 and an expected return of 14.9 percent. What is the expected return on the portfolio if the portfolio beta is 0.975?.
A) 7.65 percent
B) 9.83 percent
C) 10.73 percent
D) 11.98 percent
E12.37 percent
Business
1 answer:
Rudiy273 years ago
8 0
The answer is D) 11.98 percent
You might be interested in
Amazon Prime, briefly mentioned in the case, is a subscription service that gives members free two-day shipping on hundreds of t
Leto [7]

Cheaper pricing, more attractive loyalty programmes, more convenient delivery options and better product range.

Explanation:

A website asked participants how much their average spending online is invested. Results suggest Amazon Prime subscribers buy more money overall; U.S. Prime affirms doing 53 percent of their online shopping, while Non-Prime members invest 50 percent in the United Kingdom.

As internet customers in general, they spoke to Prime members about Amazon being too strong, with 61% of British members and 69% of American Prime members claiming that they are worried with Amazon's increasing and stifling competition. Amazon is a big player.

The main reasons they asked for Amazon were: lower prices, more loyalty rewards, more flexible shipping choices and better product selection.

Prime Members quoted the main reasons they should choose another store over Amazon. In the United States 26% and in the United Kingdom 18% have reported that they enjoy interactions in-store.

4 0
3 years ago
When working with compressed air what psi should you reduce to if using the compressed air for cleaning?
Genrish500 [490]
The correct answer should be 30 because you don't want too much pressure .
4 0
3 years ago
Read 2 more answers
A certificate of deposit offers a nominal interest rate of 3.5 percent annually.
Snezhnost [94]
I’m pretty sure the answer is c
4 0
3 years ago
7) Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4. (a) What is the nomina
konstantin123 [22]

Answer and Explanation:

The computation is shown below:

1. Nominal exchange rate is

= (Real exchange rate) × (foreign price level ÷ domestic price level)

= 10 × (4 ÷ 8)

= 5

2. Change in Nominal exchange rate is

Change in  Nominal exchange rate = (real exchange rate change )  + foreign inflation - domestic inflation

= 10 + 4 - 6

= 8%

3.) foreign inflation rate

= Change in Nominal exchange rate - real exchange rate change + domestic inflation

= 5 - 8 + 3

= 0%

We simply applied the above formulas

4 0
3 years ago
Hi-Tek is a young start-up company. No dividends will be paid on the stock over the next 9 years, because the firm needs to plow
Elza [17]

Answer:

The price of the stock today is $16.83

Explanation:

The current price per share can be estimated using constant growth model of  the DDM. The price per share can be calculated using the following formula,

P0 = D1 / r - g

To calculate the price today, we use the dividend expected for the next period. Thus, using the dividend that will be paid at t=11 or D11, we can calculate the price of the stock at t=10. We further need to discount this price using the required rate of return for 10 years to calculate the price of the stock today.

P10 = 6 * (1+0.04)  /  (0.14 - 0.04)

P10 = $62.4

The price of the stock today will be,

P0 = 62.4 / (1.14)^10

P0 = $16.83

8 0
2 years ago
Read 2 more answers
Other questions:
  • If a stricter quota, such as 30,000 tons of apricots, was imposed on this market, we would expect:
    5·1 answer
  • Amy wants to invest money for two years. She doesn’t know which investment is best for her. What should Amy do?
    13·1 answer
  • In the united states the largest expenditure component of gdp is
    9·2 answers
  • -Provide public goods
    13·2 answers
  • You find that you have significatantly overcharged one of your clients. The error was discoverd by you when you recieved payment
    14·1 answer
  • The total manufacturing cost variance consists of a.direct materials cost variance, direct labor rate variance, and factory over
    13·1 answer
  • On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright rec
    11·1 answer
  • The explosion of government regulation in the United States has witnessed an accompanying social phenomenon of great importance
    11·1 answer
  • Bonita Industries issues 4400 shares of its $5 par value common stock having a fair value of $20 per share and 6400 shares of it
    11·1 answer
  • Sylvester is taking out a loan and is confused by the jargon. Which of the following explanations might help him? a. TERM is the
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!