<span>We know from Capital asset pricing model that expected return (ER) of any stock can be calculated as
ER = Rf + beta* ( Rm - Rf)
where, Rf is risk free rate
Rm is expected return on market. Therefore,
0.128 = Rf + 1.19* (0.118 - Rf)
which is equivalent to
0.19 Rf = 0.140 - 0.128
Or, risk free rate, Rf = 0.0654 ~ 6.54%</span>
Answer:
A: 0.1475 , B: 0.3389
Explanation:
a. Probability Refrigerator purchased from store lasts more than 15 years :
Prob(refrigerator purchase from A) and Prob(refrigerator from A life > 15 years) + .........Prob(refrigerator purchase from D) and Prob(refrigerator from D life >15 years)
(0.40x0.1)+(0.25x0.20)+(0.15x0.05)+(0.20x0.25) = 0.04+0.05+0.0075+0.05 = 0.1475
b. Refrigerator last > 15 years given , Probability it is from B :
[ Prob (B Purchase) . Prob (life > 15, given from B) ] / Prob (Life > 15)
P (B/15) = [P(B).P(15/B)] / [P15] {Bayes Theorum}
= [(0.25)(0.20)] / 0.1475 = 0.05 / 0.1475
= 0.3389
Answer: No, because the father and the adult son did not sign the will in each other's presence
Explanation:
The testator's will should not be admitted to probate because the father and the adult son did not sign the will in each other's presence.
A will requires a writing such that the testator will sign in the joint presence of two attesting witnesses. It should also be noted that both witnesses understand the importance of that act of the testator and then sign in each other's presence.
Answer:
A) Valuable assets such as the company's reputation, the quality of its work force, and the strength of its management are not captured on the balance sheet.
Explanation:
As we know that the balance sheet records the assets, liabilities and the equity of the company. Now the main problem with the balance sheet is that the valuable assets such as reputation of the company, work force quality, management strength would not captured here as it only records the monetary transactions.
Therefore the correct option is a.
Answer:
e. education reimbursements
Explanation:
Incentives can be defined as a financial motivation, rewards or compensations which are given to either employees working in an organization or a group of people in order to motivate them to do more or take certain steps (actions) and give their best. Some examples of an incentive are profit-sharing plans, signing bonus, stock options, bonuses, commissions, raises etc.
However, education reimbursements is not an example of an incentive.