A belief that something will be the case or will happen is known as:

Assume that the CAPM holds. One stock has an expected return of 8% and a beta of 0.5. Another stock has an expected return of 13

Zolol [24]

Answer:

10.5%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For one stock

8% = Risk-free rate of return + 0.5 × (Market rate of return - Risk-free rate of return)

8% = Risk-free rate of return + 0.5 × Market rate of return - 0.5 × Risk-free rate of return

8% = 0.5 × Risk-free rate of return + 0.5 × Market rate of return

8% ÷ 0.5 = Risk-free rate of return + Market rate of return

So, Risk-free rate of return + Market rate of return = 16

Risk-free rate of return = 16 - Market rate of return - 1

For another stock

13% = Risk-free rate of return + 1.5 × (Market rate of return - Risk-free rate of return)

13% = Risk-free rate of return + 1.5 × Market rate of return - 1.5 × Risk-free rate of return

13% = - 0.5 × Risk-free rate of return + 1.5 × Market rate of return - 2

Now put these equations together

13% = - 0.5 × (16 - Market rate of return) + 1.5 × Market rate of return

13% = - 8 + 0.5 × Market rate of return + 1.5 × Market rate of return

So, Market rate of return would be

= 21 ÷ 2

= 10.5%

4 0

3 years ago

Discuss one transaction cost-reduction opportunity that you believe the company has missed.

shutvik [7]

This is the full question

Choose one of the Web sites listed in the previous question and identify three ways the company has reduced its transaction costs by using a Web site to provide information. List these three transaction cost-reduction elements and write a paragraph in which you discuss one transaction cost-reduction opportunity that you believe that company has missed.

Answer:

I visited the Netflix website. I do not own a netflix account. Netflix has the following cost-reduction opporunities on its webpage:

Clear information about the costs of the streaming service.
Clear Frequently Asked Question section explaining about the nature of the service, and the terms of the contract in case you decide to purchase the service.
Very nice visual interface without clutter.

One transaction cost-reduction opportunity that Netflix is missing though is:

Lack of a preview to see what shows and films are available.

4 0

3 years ago

Mullee Corporation produces a single product and has the following cost structure: Number of units produced each year 7,000 Vari

olasank [31]

Answer:

unitary absorption production cost= $128

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the unitary fixed manufacturing overhead:

Unitary fixed overhead= 441,000 / 7,000= $63

Now, the unitary absorption production cost:

unitary absorption production cost= 51 + 12 + 2 + 63

unitary absorption production cost= $128

6 0

3 years ago

The Scooter Store notified its employees at 5pm on Friday that it is laying off two-thirds of its workforce as of today and told

S_A_V [24]

Answer:

A. The Worker Adjustment and Retraining Notification Act

Explanation:

As the Scooter Store notified its employees at 5pm on Friday that it is laying off two-thirds of its workforce as of today and told them not to come in on Monday. It failed to provided advance notice to anyone and in doing so likely violated the Worker Adjustment and Retraining Notification Act 1988 where workers are required to be provide with the 60 day notification in advance if the organization does not want their services any more. But here in this case the Scooter Store has totally violation this act by not providing them with the advance notice.

5 0

4 years ago

Explain how businesses can shift demand to meet supply or capacity, and provide an example of this for a service-based business.

Vikki [24]

Answer: Buisness can shift demand by offering other sales on a new prouduct and shift derection towords there.

Explanation:

and a example of this would be the new jordans they replace or put other iteams on slae to get rod of it to get more invontory.

7 0

4 years ago