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olganol [36]
3 years ago
8

A stock has a beta of 0.9 and an expected return of 9 percent. A risk-free asset currently earns 4 percent. a. What is the expec

ted return on a portfolio that is equally invested in the two assets?
Business
1 answer:
egoroff_w [7]3 years ago
8 0

Answer:

6.5%

Explanation:

Data given in the question

Beta of the stock = 0.9

Expected return = 9%

A risk-free asset = 4%

By considering the above information, the expected return on a portfolio is

= Risk - free asset × equally basis  + expected rate of return × equally basis

= 4% × 50% + 9% × 50%

= 2% + 4.5%

= 6.5%

Since we have to find out the expected return on equally invested so we considered the risk free asset and the expected rate of return

Therefore we ignored the beta of the stock

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Identify two employment laws which might affect<br> easyJet plc's business activities.
patriot [66]

Answer:

EasyJet Plc is the eighth largest airline in the world and the second biggest in Europe, . The business generated revenue per passenger of £58 compared with a cost per seat . The return on capital employed was just under 12% in 2017. regarding Brexit which might impact on both revenue and costs going forward.

Explanation:I dont have one  

4 0
3 years ago
This morning, DJ’s invested $238,000 to help fund a company expansion project planned for three years from now. How much additio
rusak2 [61]

Answer:

$3,842.78

Explanation:

We must determine the future value of the money invested and then calculate the difference between both return rates. We can use the future value formula: FV = present value x (1 + return rate)ⁿ

3.5% ⇒ FV = $238,000 x (1 + 3.5%)³ = $238,000 x 1.035³ = $263,874.85

4% ⇒ FV = $238,000 x (1 + 4%)³ = $238,000 x 1.04³ = $267,717.63

difference = $267,717.63 - 263,874.85 = $3,842.78

5 0
3 years ago
At a large department store, the number of years of employment for a cashier is a normally distributed variable with a mean of 5
Yakvenalex [24]

Answer:

0.0084

Explanation:

For this probability problem, we will have to make use of the normal probability distribution table.

to use the table, we will have to compute a certain value

z = (x- mean) /Standard deviation

z = \frac{(10 - 5.7)}{1.8} = 2.39

Probability he has worked in the store for over 10 years can be obtained by taking the z value of 2.39 to the normal probability distribution table to read off the values.

<em>To do this, on the  "z" column, we scan down the value 2.3. we then trace that row until we reach the value under the ".09" column. </em>

This gives us 0.99916

Thus we have P (Z < 2.39) = 0.9916

We subtract the value obtained from the table from 1 to get the probability required.

1 - 0.9916 = 0.0084

The Probability that the employee has worked at the store for over 10 years = 0.0084

4 0
4 years ago
The ________ is determined by the amount by which government spending exceeds government revenue in a fiscal year. budget defici
Amiraneli [1.4K]

The answer to this question is Budget Deficit. Budget Deficit shows that the government spending is exceeding the government revenue in a year. In order to resolve the problem in budget deficit the government should cut the expenditures or the government spending and find a way to increase revenue of the country.

8 0
3 years ago
The Chinese political environment is very:
VikaD [51]

Answer:

Strict about it's people and not a lot of people own cars. I thinks that's China or that's North Korea. In not sure

3 0
3 years ago
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