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gayaneshka [121]
3 years ago
11

You consider buying a share of stock at a price of $25. The stock is expected to pay a dividend of $1 next year, and your adviso

ry service tells you that you can expect to sell the stock in 1 year for $30. The stock's beta is 1.3, rf is 6%, and market risk premium is 10%. What is the stock's alpha?
Business
1 answer:
nikklg [1K]3 years ago
4 0

Answer:

5%

Explanation:

stock's Alpha = R - Rf - beta (Rm - Rf)

  • R represents the stock's return = $6/$25 = 24%
  • Rf = 6%
  • Beta = 1.3
  • Rm = 16%

Alpha = 0.24 - 0.06 - 1.3 (0.1) = 0.24 - 0.06 - 0.13 = 0.24 - 0.19 = 0.05 = 5%

A stock's Alpha is basically the excess return that the stock yields compared to an specific benchmark, e.g. S&P 500, Dow Jones.

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The contributions of epidemiology to environmental health include:
Elanso [62]
I hope this helps--------

6 0
3 years ago
Based on the following information, calculate the variable overhead rate variance. Actual variable overhead cost $15,500 Actual
Nesterboy [21]

Answer:

Rate variance = $250 favorable

Explanation:

<em>The variable overhead rate variance is the difference between the actual variable cost and the standard variable overhead  cost the actual actual hours used.</em>

<em>We would compare the actual cost to the standard cost of the actual hours used . This is done below as follows:</em>

                                                                                               $

4,200 hours should have cost (4200 × 3.75 )               15,750

but did cost                                                                       <u>15,500</u>

Rate variance                                                                 <u>      250</u>  Favorable

Note the actual hours of 4,200 cost $250 less than it should be have cost . Hence the variance is favorable

Rate variance = $250

7 0
3 years ago
The demand for ski rentals falls when the price of lift tickets increases. This is an example of?
romanna [79]

The demand for ski rentals falls when the price of lift tickets increases. This is an example of Price Elasticity of demand.

<h3>What Is Price Elasticity Demand?</h3>

This refers to the relationship between the price of a commodity relative to the demand of that same commodity.

  In other words Price elasticity of demand  is a measure of how sensitive the quantity demanded is to its price.

 

   When the price increase, quantity demanded for such product decreases. It is important to note that the fall in prices of some product is more than the others.

Learn more about Price Elasticity of Demand at brainly.com/question/5078326

#SPJ1

5 0
1 year ago
In 2003, Congress passed a substantial cut in income taxes. The Federal Reserve also substantially lowered interest rates. How c
s344n2d4d5 [400]

Answer:

D. The tax cut can be categorized as fiscal policy and the lowering of interest rates can be categorized as monetary policy.

Explanation:

Fiscal policy is when the government uses either taxes or government spending to influence the economy.

Contractionary fiscal policy is when the government increases taxes or reduces spending.

Expansionary fiscal policy is when the government decreases taxes or increases spending.

Monetary policy are policies enacted by central bank of a country to control money supply or interest rest.

Contractionary monetary policy is reducing money supply or increasing interest rates.

Expansionary monetary policy is increasing money supply or decreasing interest rate.

I hope my answer helps you.

8 0
3 years ago
MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are
Marina CMI [18]

Answer:

Cascade down.

Explanation:

MBO means Management by Objectives.

Is a program that encompasses:

-specifict goals

-participatetively set

-for an explicit time period

-with feedback on goal progress

MBO operationalizes the concept of objectives by devising a process by which objectives cascade down through the organization.

The result is a hierarchy of objectives that links objectives at one level to those at the next level.

For individual employee, MBO provides specific personal performance objectives.

The cascade down of objectives is:

1 Overall organizational objectives

2 Divisional objectives

3 Departamental objectives

4 Individual objectives

4 0
2 years ago
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