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
alekssr [168]
4 years ago
15

Consider the capital asset pricing model. The market degree of risk aversion, A, is 3. The risk premium is 2.25%. If the risk-fr

ee rate of return is 4%, the expected return on the market portfolio is ________.
Business
1 answer:
inna [77]4 years ago
3 0

Answer:

SO expected return on Mkt Portfolio Rm = 10.75%

Explanation:

market degree of risk aversion A = 3

Var = 0.0225 = SD^2

Rf = 4%

What is expected return on Mkt Portfolio ie Rm??

According to CAPM, Rm-Rf = A*SD^2

where SD is Std Dev (Recall SD^2 = Variance)

A is market degree of risk aversion

So we have Rm-4% = 3*0.0225

ie Rm = 4% + 3*0.0225 = 10.75%

SO expected return on Mkt Portfolio Rm = 10.75%

You might be interested in
Hayley, from California, arrived in Saudi Arabia and immediately noticed that the way Saudi men treat women is vastly different
Jet001 [13]

Answer:

The answer is 1. Culture shock

Explanation:

What is culture shock?

According to Merriam-Webster, culture shock is defined as the sense of confusion and uncertainty sometimes with feelings of anxiety that may affect people exposed to an alien culture or environment without adequate preparation.

With the definition above, it is therefore safe to say that, in the case of Hayley feeling uncomfortable and disoriented in a new environment, she is experiencing Culture Shock.

4 0
3 years ago
Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-pric
inn [45]

Answer: Off- Price Retail Store

Explanation: An off price retail store also known as treasure hunt is a store that sells at very low prices. They stock wide range of original goods from well known manufacturers and sell at reduced price.

It focuses more on fashion goods from well known designers. The items bought here are well known for quality.

5 0
3 years ago
When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government follo
Sladkaya [172]

Answer:

(B)  expropriation.

Explanation:

Expropriation is the demonstration of an administration taking exclusive property against the desires of the proprietors, apparently to be utilized for the advantage the general open. In the United States, properties are regularly dispossessed so as to manufacture expressways, railways, air terminals, or other foundation ventures.  

It is the seizure of private property by an open organization for a reason regarded to be in the open intrigue

6 0
3 years ago
Iron Man Foundry produces multiple products, one of which is casting a hose nozzle. The daily demand for these nozzles is 1,000
Alex777 [14]

Answer: 0.48 minutes

Explanation:

Takt time = Net time available / Daily demand

Net time available is number of minutes in a shift so:

= 8 hours * 60 minutes

= 480 minutes

Daily demand = 1,000 units

Takt time = 480 / 1,000

= 0.48 minutes

4 0
3 years ago
[The following information applies to the questions below.]
Zepler [3.9K]

Answer:

The corresponding budgets in column B from which dollar amounts are transferred directly in constructing the budgets listed in Column A are matched in the explanation below

Explanation:

1.) Budgeted Income Statement

E.) Sales Budget

2.) Budgeted Balance Sheet

D.) Payables Budget

3.) Cash Flow Budget

A.) Direct Materials Budget

4.) Cost of Goods Sold Budget

B.) Cost of Goods Sold Budget

5.) Production Budget

C.) Production Budget

5 0
3 years ago
Other questions:
  • On a separate sheet of paper, copy the multi- flow map below. organize information on how firms determine their total costs by c
    12·1 answer
  • Bank customers try to reduce uncertainty of using a service by drawing inferences from the ________, such as the design of the b
    6·1 answer
  • Majestic Corporation manufactures wheel barrows and uses budgeted machine hours to allocate variable manufacturing overhead. The
    5·1 answer
  • Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of
    7·1 answer
  • SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs a
    6·1 answer
  • Help marketing multiple choice which is it
    8·1 answer
  • Jack broke into the Acme Liquor Store. He took $600 in cash. The police arrested him and he was convicted for this crime. The pe
    11·1 answer
  • The existence of a ________ means that the interest rate on a two-year bond will exceed the average interest rate on two success
    14·1 answer
  • Call to actions are used in ads to...
    14·1 answer
  • What are the concerns in cash management, and how does cash management iss help financial managers?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!