Assume that expected return of the stock A in Rachel’s portfolio is 13.6% this year. The risk premium on the stocks of the same
1 answer:
Answer:
6.4%
Step-by-step explanation:
Capital asset pricing model measure the expected return on an asset or investment. it is used to make decision for addition of specific investment in a well diversified portfolio.
As per given data
Expected return = 13.8%
Market Risk premium = Mrp = 4.8%
Investment beta = = 1.5
Formula for CAPM
Expected return = Risk free rate + beta ( market risk premium )
Expected Return = Rf + ( Mrp)
As we have the expected return, we need to calculate the the risk free rate.
13.6% = Rf + 1.5 ( 4.8% )
13.6% = Rf + 7.2%
Rf = 13.6% - 7.2%
Rf = 6.4%
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Answer:
a)
b) Approx. 27,569 bacteria
c) About 103 minutes
Step-by-step explanation:
a)
This will follow exponential modelling with form of equation shown below:
Where
A is the initial amount (here, 12000)
b is the growth factor (double, so growth factor is "2")
n is the number of minutes in which it doubles, so n = 50
Substituting, we get our formula:
b)
To get number of bacteria after 1 hour, we have to plug in the time into "t" of the formula we wrote earlier.
Remember, t is in minutes, so
1 hour = 60 minutes
t = 60
Substituting, we get:
The number of bacteria after 1 hour would approximate be <u>27,569 bacteria</u>
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c)
To get TIME to go to 50,000 bacteria, we will substitute 50,000 into "y" of the equation and solve the equation using natural logarithms to get t. Shown below:
After about 103 minutes, there will be 50,000 bacteria