Answer: Risk free rate = 1.9%
Explanation:
The Capital Asset Pricing Model allows for the calculation of the required return using the market return, beta and risk free rate.
Required return = Risk free rate + Beta * ( Market return - Risk free rate)
First find the market rate. Stock Y is uniquely positioned to help with that:
12.4% = Risk free rate + 1.0 * (Market return - Risk free rate)
12.4% = rf + Market return - rf
Market return = 12.4%
Apply this to the formula using Stock Z:
8.2% = rf + 0.6 * (12.4% - rf)
8.2% = rf + 7.44% - 0.6rf
rf - 0.6rf = 8.2% - 7.44%
0.4rf = 0.76%
rf = 0.76% / 0.4
Risk free rate = 1.9%
ANSWER:
D. A system of desktops
Answer:
you are 11-16 years old and love one direction
He asked to borrow the officers truck.
Answer:
The Krabby Patty secret formula is the recipe for the highly popular Krabby Patty burger sold by the famous Bikini Bottom restaurant, the Krusty Krab. There are many variations of the Krabby Patty, but all have one secret ingredient, which is yet to be identified or revealed.
Explanation:
