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choli [55]
3 years ago
13

The return on the market portfolio is currently​ 12%. Mobile Phone Corporation stockholders require a rate of return of​ 30% and

the stock has a beta of 3.2. According to​ CAPM, determine the riskminus−free rate.
Business
1 answer:
Triss [41]3 years ago
5 0

Answer:

The risk free will be 3.82%

Explanation:

We post the CAPM formula and how given data

Ke= r_f + \beta (r_m-r_f)  

risk free             ?

market rate 0.12

premium market market rate - risk free ?

beta(non diversifiable risk) 3.2

Ke = 0.3

Now we post the know values and solve for risk free

0.3= risk-free + 3.2 (0.12 - riskfree)  

0.3 = risk-free + 3.2 \times 0.12 - 3.2riskfree

0.3 = 0.384 - 2.2riskfree

0.3-0.384 = -2.2riskfree

-0.084/-2.2= riskfree

risk free = 0.0381818181818182‬ = 3.82%

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Answer:

$21,000

Explanation:

initial investment $25,000

we need to determine the expected value of every possibility:

  • $15,000 loss ⇒ 20% x $10,000 = $2,000
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  • $40,000 gain ⇒ 5% x $65,000 = $3,250
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total expected value = $21,000

8 0
3 years ago
g "With respect to the types of information systems used in organizations, financial, operations, and human resource management
34kurt

Answer:

enterprise resource planning.

Explanation:

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6 0
3 years ago
Pls help me!! And thank you so much
marshall27 [118]
The answer will be C

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3 0
3 years ago
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On January 1, Kirk Corporation had total assets of $860,000. During the month, the following activities occurred: -. Kirk Corpor
posledela

Answer:

$867,000

Explanation:

Assets are economic resources controlled by the entity as a result of past events from which cash is expected to flow into the business.

The Amount of Total Assets Available is calculated as follows:

Beginning Balance                                $860,000

Equipment Acquired                                  $7,000

Supplies Inventory                                     $3,600

Cash payment for Supplies                      ($3,600)

Cost of Land sold                                     ($16,000)

Cash Proceeds from the sale of land      $16,000

Total Assets                                            $867,000

7 0
2 years ago
A graph titled U S Unemployment Rate from 1961 to 2011 has Year on the x-axis, from 1961 to 2011, and Percentage unemployed on t
almond37 [142]

Answer: 1. Decreasing

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Explanation: i guess on it my guy

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3 years ago
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