1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jeka94
2 years ago
12

1. A stock has an expected return of 10.2 percent, the risk-free rate is 4.1 percent, and the market risk premium is 7.2 percent

. What must the beta of this stock be?
Business
1 answer:
NNADVOKAT [17]2 years ago
5 0

Answer:

Beta is  0.85  

Explanation:

The value of Beta can de derived from the CAPM formula of expected return

expected return=risk-free rate+Beta*market risk premium

expected return  is 10.2%

risk-free rate is 4.10%

market risk premium is 7.2%

Beta is unknown

10.20%=4.10%+Beta*7.20%

10.20%-4.10%=Beta*7.20%

6.10% ==Beta*7.20%

Beta=6.10% /7.20%

Beta= 0.85  

You might be interested in
Hugh is interested in making a lot of money. He is a very good salesperson. People tell him he could sell sand in Saudi Arabia!
Mila [183]

The type of Job that Hugh has to look for should be the one that can pay him by commission.

<h3>What is a commission?</h3>

This is the money that a person is paid after they have brokered a deal. The commission is the money.

This is the service charge that Hugh is going to charge to his clients whenever he helps them.

Read more on a commission here:

brainly.com/question/957886

#SPJ1

8 0
1 year ago
Chiquita produces bananas for an average explicit cost of $0.25 per banana and sells 1 million bananas per week for a price of $
VLD [36.1K]

Answer:

Chiquita makes an economic profit of $250,000.

5 0
2 years ago
Cullumber Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $ 90
Llana [10]

Answer:

$102,080

Explanation:

Given that,

Service cost = $90,500

Interest rate = 9 %

Expected return on plan assets = $62,800

Prior service cost amortization = $10,300

Projected benefit obligation at January 1, 2017 = $712,900

Pension expense for the year 2017:

= Service cost + Interest cost - Expected return on plan assets + Prior service cost amortization

= $90,500 + ($712,900 × 9%) - $62,800 +  $10,300

= $90,500 + $64,080 - $62,800 +  $10,300

= $102,080

8 0
3 years ago
according to the text, superior performance within the strategic business unit (sbu) is sought by asking which major question?
EastWind [94]

in step with the text, superior overall performance in the strategic commercial enterprise unit (SBU) is sought with the aid of asking the main question is a functional supervisor.

The definition of a superior is a person who is better in diploma, rank, numbers, etc. than others. An example of a superior is the supervisor of an enterprise. advanced comes from the Latin phrase which means above and it literally way something that is above others in best or reputation.

Superior means better or greater in value. An instance of advanced users as an adjective is an advanced manager which means a supervisor whose abilities have been evaluated as fantastic. An instance of advanced users as an adjective is a superior grade of 100% on an exam. (printing) Set above the primary line of a kind. you use superior to explain someone or something that is better than different comparable humans or matters. Your superior in an agency that you work for is a person who has a higher rank than you. They do now not have a lot communique with their superiors.

Learn more about Superior here:

brainly.com/question/26348640

#SPJ4

3 0
10 months ago
An example of a societal ___________ is Germans' lack of interest in using credit cards like Visa and MasterCard, perhaps in par
Sidana [21]

Answer: values

Explanation:

Societal values can simply be defined as the moral principles defined by the traditions, society dynamics, and cultural beliefs.

These values impact on the behavior of the people. An example is Germans' lack of interest in using credit cards like Visa and MasterCard, because the German word for 'debt' is the same as the word guilt. This hae to do with their belief and values.

5 0
3 years ago
Other questions:
  • Stickiness is an important attribute for which revenue model?
    10·1 answer
  • A company developed the following per unit materials standards for its product: 3 pounds of direct materials at $5 per pound. If
    5·1 answer
  • A benefit of earning an hourly wage instead of a salary is
    7·2 answers
  • Assuming the relevant required return on levered cash flows is 15 percent, and that the property will be held by a buyer for fiv
    11·1 answer
  • What is the action called that unreasonably restricts competition and functions against the public interest?
    11·1 answer
  • Bloomington Corporation reported the following on their contribution format income statement: Sales (12,000 units) $175,000 Less
    12·1 answer
  • Fields Cutlery, a manufacturer of gourmet knife sets, produced 20,000 sets and sold 23,000 units during the current year. Beginn
    14·1 answer
  • Explain the functions of a trade union. (6)
    14·2 answers
  • Explain 3 factors that change supply elasticity.
    12·1 answer
  • B was 42 when the life insurance policy was issued. 42 is referred to as the ______ age of the policy.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!