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
3 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]3 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
Yo tell me if this is true.. i walk down the sidewalk and found a grass hooper and ate it...
worty [1.4K]

Answer: bro why would you eat a grasshopper

Explanation:

kinda sus ngl

6 0
3 years ago
Read 2 more answers
You are the newly assigned project manager to a major IT upgrade project in your global company. How will you determine the risk
kap26 [50]

Answer:

I have to identify the risk factors in the project and then gauge the willingness of the company to take such risks.

Explanation:

Risk tolerance is the willingness of an organization or an individual to take certain risks. The risk tolerance level of a person or organization can be classified as either high or low. For a project manager who wants to determine the risk tolerances associated with his project, he has to first identify the risk factors, and then try to know the risk level and if indeed this level is acceptable within the organization's culture and standard.

The project manager would do well to plot a graph that would show the probability of a risky action happening or not. A risk tolerance line is now obtained from where the project manager can know if that risk is tolerable by organization standards. The extent of job security would also help in determining the amount of risk a manager can take. However, they are still expected to stay within the standards of the organization.

8 0
3 years ago
___ social classes do not tend to be among Whole Foods customers because of the higher prices for products.
Luden [163]

Answer:

A

Explanation:

Lower class can not usually afford store like this. Hence why they are called lower class

8 0
3 years ago
Read 2 more answers
Which of the following statements are true?
kkurt [141]

Answer:

D- income statement accounts are temporary accounts and do not retain their balances from one period to the next.

Explanation:

quizlet

8 0
2 years ago
Harriet Kirby, a fund raising manager at a women's rights organization, experienced a bad incident last year with the public rel
murzikaleks [220]

Answer:

A

Explanation:

selective perception is a form of bias when new information is interpreted in a way that conforms to existing values and beliefs.

4 0
2 years ago
Other questions:
  • It has been abundantly demonstrated that nominal interest rates, exchange rates, and inflation are very tightly linked. In Italy
    8·1 answer
  • On July 1, 2021, Ayayai Inc. entered into a contract to deliver one of its specialty machines to Kickapoo Landscaping Co. The co
    7·1 answer
  • Instructions:Type the correct answer in the box. Spell all words correctly.
    9·2 answers
  • Two mutually exclusive investment opportunities require an initial investment of $7 million. Investment A pays $1.5 million per
    5·1 answer
  • Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources. Which of the following b
    6·1 answer
  • Suppose the 2020 adidas financial statements contain the following selected data (in millions). Current assets $4,575 Interest e
    15·1 answer
  • The type of work you do to earn a living is called A. Occupation B. Skills C. Identity B. Dignity
    14·1 answer
  • Madison Company issued an interest-bearing note payable with a face amount of $30,000 and a stated interest rate of 8% to the Me
    13·1 answer
  • Period costs are the​ ________. A. product costs that must be paid in the accounting period in which they are incurred. B. sam
    5·1 answer
  • If I could plan an IDEAL school environment, It would be
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!