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s344n2d4d5 [400]
3 years ago
10

HR Industries (HRI) has a beta of 1.8, while LR Industries' (LRI) beta is 0.6. The risk-free rate is 5.5%, and the required rate

of return on a stock with a beta of 1 is 12.5%. The expected rate of inflation built into rRF falls by 1.5 percentage points, the real risk-free rate remains constant, the required return on the market falls to 10.5%, and all betas remain constant. After all of these changes, what will be the difference (in percentage points) in the required returns for HRI and LRI? A. 3.8% B. 0.9% C. 1.5% D. 2.4% E. 3.5%
Business
1 answer:
inna [77]3 years ago
7 0

Answer:

None of above options are correct. 7.8% .

Explanation:

Rf = 5.5% - 1.5% = 4%

Rhri = 4% + 1.8*(10.5% - 4%) = 15.7%

Rlri = 4% + 0.6*(10.5% - 4%) = 7.9%

Difference = 15.7% - 7.9% = 7.8%

The difference (in percentage points) in the required returns for HRI and LRI is 7.8%

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Explanation:

Hey there!!!

Your required answer is option D.

Because, when you engage or serve others for money or salary or wage it is termed as wage employment.

<em><u>Hope it helps</u></em><em><u>.</u></em><em><u>.</u></em><em><u>.</u></em>

5 0
2 years ago
The process of preventing exceptions from causing runtime errors is called
Molodets [167]
The process of preventing exceptions from causing runtime errors is called exception handling.
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4 0
3 years ago
At what point does entertainment end and marketing begin? Why did you draw the line there?
Tcecarenko [31]

Answer:

Explanation:

The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers. The end objective of marketing is selling a product and in this case we presume marketing means advertisement.

Entertainment can be separated from marketing activities and appeal of entertainment can be used to achieve different goal. Entertainment can only be used for holding attention and interest of audience that would be the consumer or it gives pleasure or delight. It is an idea or task which is developed for keeping attention of audience and this process is accelerated by entertainment industry in order to sell entertainment product. But according to psychologists entertainment is just attainment of gratification and no other result or measurable benefits can be achieved by entertainment and role of entertainment ends here. Marketing begins with encouraging people towards purchasing the commercial product. Behind the scenes tactics like advertising, production, placement and pricing incorporated in marketing. Main objective of marketing is attracting consumers towards the product or services provided by the organization. While entertainment just hold attention and interest of consumers and it is the line between..The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers. The end objective of marketing is selling a product and in this case we presume marketing means advertisement.

Entertainment can be separated from marketing activities and appeal of entertainment can be used to achieve different goal. Entertainment can only be used for holding attention and interest of audience that would be the consumer or it gives pleasure or delight. It is an idea or task which is developed for keeping attention of audience and this process is accelerated by entertainment industry in order to sell entertainment product. But according to psychologists entertainment is just attainment of gratification and no other result or measurable benefits can be achieved by entertainment and role of entertainment ends here. Marketing begins with encouraging people towards purchasing the commercial product. Behind the scenes tactics like advertising, production, placement and pricing incorporated in marketing. Main objective of marketing is attracting consumers towards the product or services provided by the organization. While entertainment just hold attention and interest of consumers and it is the line between... entertainment and marketing.

.

7 0
3 years ago
When all companies and their managers in a society behave in a socially responsible way, business increases, quality of life inc
Mkey [24]

Available Options Are:

A. A climate of caring will pervade.

B. Lawlessness all but ceases to exist.

C. People look after their own interests.

D. Small business starts increase.

E. Inflation decreases.

Answer:

Option A. A climate of caring will pervade.

Explanation:

When the people in a society start acting socially responsible which means that they value every single life on earth because acting socially means sustainability which says that the future generation needs must not be compromised in meeting current generation needs. Hence when everyone will be thinking as a socially responsible person then their will be a climate of care and every life matter would be understood by every single person on earth.

7 0
3 years ago
What is NOT affected by decisions of the federal Open Market Committee?
natka813 [3]

I believe the answer is: D. bond prices


Bond prices is determined by the mutual agreement between the company who issue the bond and the investors who bought them along with its value in the market. federal Open Market Committee only has the jurisdiction in United States Treasury securities and banking operation.

5 0
3 years ago
Read 2 more answers
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