According to the capital asset pricing model (CAPM), a capital budgeting project that has a beta equal to zero should be evaluat
1 answer:
Answer:
a. True
Explanation:
from the CAPM formula we can derive the statemeent as true.
risk free = 0.05
market rate = 0.12
premium market = (market rate - risk free) 0.07
beta(non diversifiable risk) = 0
Ke 0.05000
As the beta multiplies the difference between the market rate and risk-free rate a beta of zero will nulify the second part of the equation leaving only the risk-free rate. This means the portfolio is not expose to volatility
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Answer:
Variable cost per unit = $64 per unit
so correct option is b. $64
Explanation:
given data
sold Arks = 14,000 units
sold Bins = 56,000 units
products unit selling price unit variable cost unit contibution
Arks $120 $80 $40
Bins 80 60 20
to find out
Carter Co.'s variable cost
solution
we get here Variable cost per unit find as
Variable cost per unit = ( Arks unit variable cost × sold Arks + Bins unit variable cost × sold Bins ) ÷ total sales
Variable cost per unit =
Variable cost per unit = $64 per unit
so correct option is b. $64