Answer:
Beta= 0.88
Explanation:
<em>The Capital Asset pricing Model (CAPM) can be used to determined the beta. </em>
<em>According to the Capital Asset pricing Model the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. </em>
These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market.
Ke- expected return.
<em>Note that (Rm-Rf) is known as equity risk premium</em>
Using this model,
10.2%= 3.9% + β× (7.2%)
0.102=0.039 + 0.072β
collect like terms
0.072β = 0.102 -0.039
0.072β = 0.063
Divide both sides by 0.072
β = 0.063
/0.072
β= 0.875
Beta= 0.88
Answer:
somewhere exposed
Explanation:
the target market for a company's product or service should be a place where consumers stay and not an isolated place but instead a place that will catch the eyes of people
Answer:
Items a) and b)
a) items used currently in the production of goods to be sold items
b) held for resale items currently in production for future
Explanation:
Inventory consists of current assets to be used in production of final goods or are the ones which are final goods and held for sale.
In the given case also, statement a includes raw materials, which are used to make the final good to be sold, which is a part of inventory.
Further, statement b includes work in production or final goods which are currently in production but would be resold.
The items which are kept for their use as like machinery or furniture or which shall be disposed are not inventory but are in fixed assets category.
For the answer to the question that is being asked and shown above, it is "TRUE." <span>The value of a cash budget is that it helps you predict and supply your future cash needs. This statement is true as far as the value of a cash is concerned.</span>
Answer:
if I had to take a guess my answer would be 50%