Answer:
expected return on market = 0.10373 or 10.373%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the market risk premium
We will first calculate the market risk premium using the required rate of return for stock, beta and risk free rate and plugging these values in the formula above.
0.1330 = 0.058 + 1.64 * rpM
0.1330 - 0.058 = 1.64 *rpM
0.075 = 1.64 * rpM
rpM = 0.075 / 1.64
rpM = 0.04573 or 4.573%
As we know that the beta for market is always equal to 1, we can calculate the rate of return for market as,
expected return on market = 0.058 + 1 * 0.04573
expected return on market = 0.10373 or 10.373%
Answer:
<u>Predatory</u>.
Explanation:
This predatory pricing strategy is used when a company aims to create entry barriers for new competitors, significantly lower the price to gain new customers and drive competitors away. The cons of this strategy is that in addition to being illegal, lost revenue is not always recovered, and there are other factors that drive competitors away, not just price.
Answer:
$80,000
Explanation:
Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be
Variable administrative cost to allocate to Department 1=(40,000 ÷100,000) x $200,000
Variable administrative cost to allocate to Department 1=0.4×$200,000
Variable administrative cost to allocate to Department 1= $80,000
Therefore The Variable administrative cost to allocate to Department 1 would be $80,000
In other to be able to conduct a work flow analysis and defines the outputs of the process, she needs to defines the type of products that will need to be manufactured.
<h3>What is used to define the products?</h3>
In a firm, the product mission is a statement that contains a clear and concise idea of its product's purpose.
In conclusion, she needs to defines the type of products that will need to be manufactured.
Read more about product mission
<em>brainly.com/question/1687404</em>
