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irinina [24]
3 years ago
6

Your opinion is that security C has an expected rate of return of 0.106. It has a beta of 1.1. The risk-free rate is 0.04 and th

e market expected rate of return is 0.10. According to the Capital Asset Pricing Model, this security isA. underpriced. B. overpriced.C. fairly priced.D. Cannot be determined from data provided.
Business
1 answer:
Lostsunrise [7]3 years ago
8 0

Answer:

C. Fairly priced

Explanation: use the equation of calculating Capital Asset Pricing Model CAPM

ER=Rf+βi(ERm−Rf)

where:

ER =expected return of investment = ?

Rf=risk-free rate = 4%

βi=beta of the investment = 1.1

(ERm−Rf)=market risk premium = (10% - 4%)

​

Therefore ER=Rf+βi(ERm−Rf)

= 4% + 1.1(10% - 4%)

=10.6%

therefore, the security is fairly priced

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The traditional approach to corporate planning was to: have a decentralized planning staff. have a centralized planning departme
stiv31 [10]

Answer: The correct option is “ have a centralized planning department”

Explanation: A corporate plan involves setting out the actions required and also determine the resources available in other to deliver the required aims and objectives. However, your corporate plan is an important document that will continue to help monitor finances, liabilities, identify opportunities and control your internal systems and structures. Furthermore, corporate plan involves creating a long term plan with the aim of achieving the organizational stated goals and objectives.

6 0
3 years ago
Constructive criticism is intended as a possible solution. True False
Alexeev081 [22]
<span>Constructive criticism is a communication technique intended to identify and find ... It also invites her to find possible solutions to whatever is going wrong.</span>
8 0
4 years ago
Read 2 more answers
Which of the following definitions describes a receptacle ground fault circuit interrupter (GFCI)
Luba_88 [7]
The choices can be found elsewhere and as follows:

a. Includes an extension cord
b. Replaces a circuit breaker on the main circuit board
c. Fits into the standard outlet box
d. Used when permanent protection is not available

I think the correct answer is option B. The best definition for a receptacle ground fault circuit interrupter (GFCI) would be it replaces a circuit breaker on the main circuit board.
8 0
3 years ago
What is the current price of a $1,000 par value bond maturing in 12 years with a coupon rate of 14 percent, paid semiannually, t
Katen [24]

The current price of a $1,000 par value bond maturing in 12 years with a coupon rate of 14%, paid semiannually, and a YTM of 13% is $1,899.31.

<h3>How is the price of bonds calculated?</h3>

The price of bonds can be computed using the present value formula of all future cash flows.

The present value table can also be used.  Here, we have used the present value calculator from an online finance calculator, as below.

<h3>Data and Calculations:</h3>

N (# of periods) = 24 (12 x 2)

I/Y (Interest per year) = 13%

PMT (Periodic Payment) = $140

FV (Future Value) = $1,000

<u>Results:</u>

PV = $1,899.31

Sum of all periodic payments = $3,360 ($140 x 24)

Total Interest $2,460.69

Thus, the current price of a $1,000 par value bond maturing in 12 years with a coupon rate of 14%, paid semiannually, and a YTM of 13% is $1,899.31.

Learn more about the price of bonds at brainly.com/question/25596583

3 0
2 years ago
How water utility company caters for their interests and what may happen if their expectations are not met.​
anastassius [24]
When I started thinking about three key stakeholders of a water utility company, it became a challenge I would never expect. Too many people are interested in it – government, unemployed people, banks, local authorities, and probably I made a wrong choice trying to make a shorter list – please note, these are only my ideas and I will try to explain them.

First, I asked myself without whom this company cannot exist. The answer is obvious: without Affected people such as households, families, and individuals. These people have an extremely high interest in receiving the supply of piped water, as well as in everything that is connected with improving the quality of this service. These people should be catered well; if the quality of the service is bad (e.g., the water is dirty, there is no water during some long periods of time, the fee is too high, etc.) – affected people might do several things, from applying to the court (and, actually, winning the case) to moving in order to change the water utility company.

The other two key stakeholders are the Government and Owners. The government is interested in improving water supply and sanitation services and is responsible for setting taxes, providing opportunities and guidance. The Government sets laws, taxes, and rules – every company must obey them and if it doesn’t, it will lose a lot of money and, probably, won’t exist for a long period of time. The water utility company plays a serious role in the daily life of hundreds and thousands of citizens, and in some cases when something goes wrong the Government can directly regulate how this company works to make sure that affected people are satisfied.

3 0
3 years ago
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