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Romashka [77]
3 years ago
12

According to the capital asset pricing model (CAPM), a capital budgeting project that has a beta equal to zero should be evaluat

ed using a required rate of return equal to the risk-free rate. a. True b. False
Business
1 answer:
lara [203]3 years ago
6 0

Answer:

a. True

Explanation:

from the CAPM formula we can derive the statemeent as true.

Ke= r_f + \beta (r_m-r_f)

risk free = 0.05

market rate = 0.12

premium market = (market rate - risk free) 0.07

beta(non diversifiable risk) = 0

Ke= 0.05 + 0 (0.07)

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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Mitchell does not have a checking account, but needs to pay a bill. By what means can Mitchell pay?
Soloha48 [4]

Answer: Direct deposit.

Explanation:

A direct deposit is a form of payment where a depositor pays money directly to the receiver account. Direct payment can be done by either mobile transfer or deposit made in person.

Mitchell can make use of direct payment to pay her bills, as she doesn't need a checking account to make direct payments.

3 0
4 years ago
In the past there have been violent protests against the World Bank and the World Trade Organization. The protesters argued that
rjkz [21]

Answer:

1) disagree with the protesters because these practices will help make both rich and poor countries richer.

Explanation:

Free trade and foreign direct investments should make increase the wealth of both poor countries and rich countries. This rarely happens due to one main problem, corruption in poor countries. A lot of people are angry at foreign multinational corporations that have excessive powers on poor countries and they also earn extremely high profits, but it is not only the fault of the multinationals, it is also the fault of the poor countries' leaders.

No corporation can simply go to another country and claim everything for themselves, ti doesn't work like that. Generally corporations have very deep pockets and they simply bribe a president, a secretary of something, a few more people including congressmen and magically they purchase the purchase assets at below market prices. This repeats again and again everywhere around the world, with a very few exceptions.

For example, Ireland was extremely poor and when it joined the European Union it decided to host several multinationals and it has turned into a developed country since then. Chile is another successful story, and it was a dictator that opened Chilean economy to foreign investment.

The problem with most poor countries is that their corrupt leaders benefit themselves and not the country.

6 0
3 years ago
QUESTION 4
Likurg_2 [28]
4) Trade-off

5) it might be "Their resources are limited"
6 0
3 years ago
Preparation of cash budget Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2013 to make sure they can
Alenkasestr [34]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Kali contracts to sell leony her car for $3,000. this contract will be fullydischarged when kali and leony
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