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Vikki [24]
3 years ago
6

Stock R has a beta of 1, Stock S has a beta of 0.45, the required return on an average stock is 9%, and the risk-free rate of re

turn is 3%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.
Business
1 answer:
insens350 [35]3 years ago
4 0

Answer:

3.00%

Explanation:

Required return of a stock = Risk free rate of return + (average required return - Risk free rate of return) (Beta of the stock)

Required return of Stock R = 0.03 + [ (0.09 - 0.03) * 1)] = 0.09

Required return of Stock S = 0.03 + [ (0.09 - 0.03) * 0.45)] = 0.06

Difference = 0.09 - 0.06 = 0.03, or 3%

Therefore, the required return on the riskier stock will exceed the required return on the less risky stock by 3.00%.

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Answer: It would either be A or D.

Explanation:

because an oral presentation is a presentation that presents research and statistical information and a slide presentation could do the same but an oral presentation might show more statistical information and a slide might present more research, but if I had to choose one that might be the answer I would say Oral presentation since that's the most common way of presenting research of a topic

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3 years ago
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3 years ago
If a borrower's monthly interest payment on an interest-only loan at an annual interest rate of 7.3% is $877, how much was the l
mihalych1998 [28]

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$144,200

Explanation:

7 0
2 years ago
In January, Hometown Ice Cream Shoppe reported the following balances in their income statement accounts. Based on this informat
Gekata [30.6K]

Answer:

A) Debit of $1,445

Explanation:

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3 years ago
The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a
katrin [286]

Answer:

decrease in the day's sales inventory

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