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Pie
4 years ago
8

Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. Suppose also that the expected re

turn required by the market for a portfolio with a beta of 1 is 10.0%. According to the capital asset pricing model, what is the expected return on the market portfolio?
Business
1 answer:
iogann1982 [59]4 years ago
5 0

Answer: 10%

Explanation:

The Capital Asset Pricing Model or CAPM for short can be used to calculate expected return in the following manner,

Expected return = Rf+B(Rm-Rf)

Rf = Risk free rate

B = Beta

Rm= Market return.

Plugging the figures in we have

Expected return = Rf+B(Rm-Rf)

= 0.04 + 1(0.1 - 0.04)

= 0.1

= 10%

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Libraries and the registrar/bursar are examples of resources that
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The correct option is B. Libraries and the registrar/bursar are examples of resources that may be accessible online.

You will converse with peers on the subjects covered in a session on the discussion board.

<h3>What are study resources?</h3>

Study aids are available to support students in achieving their academic and non-academic objectives. Making use of these beneficial hints can help you get the most out of your education. While balancing life as a student, time management and access to study materials is crucial.

Learning Materials Materials are things that are employed in the teaching of a subject. The "Primary Material Type" field and the "Secondary/Other Material Type" field definitions for the material types that can be chosen during upload are listed below.

The best choice is B. Online resources include the registrar/bursar and libraries, for instance.

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7 0
1 year ago
True or false: The aggregate demand curve slopes downward because it reflects a direct relationship between the price level and
bearhunter [10]

The aggregate demand curve slopes downward because it reflects a direct relationship between the price level and the amount of real output demanded. This statement is false.

<h3>What is a demand curve?</h3>

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In this case, the curve slopes downward because output reduces as price increases. This shows an inverse relationship.

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6 0
2 years ago
Adjusting and paying accrued wages L.O. C1, P1 Pablo Management has seven part-time employees, each of whom earns $205 per day.
Marizza181 [45]

Answer:

1- Wages Expense (Dr.) $1,025

Wages Payable (Cr.) $1,025

2- Wages Expense (Dr.) $1,845

Wages Payable (Cr.) $1,025

Cash (Cr.) $820

Explanation:

Wages expense = $205 * 5 days a week = $1,025 per week.

Wages expense = $205 * 4 days a week = $820 per week.

7 0
3 years ago
The Holmes Company's currently outstanding bonds have a 8% coupon and a 13% yield to maturity. Holmes believes it could issue ne
Marina86 [1]

Answer: 8.45%

Explanation:

From the question, we are informed that Holmes Company's currently has an outstanding bonds and has a 8% coupon and a 13% yield to maturity.

We are further told that Holmes believes it could issue new bonds at par that would provide a similar yield to maturity and that its marginal tax rate is 35%.

Holmes's after-tax cost of debt will therefore be calculated as:

= Yield to maturity × (1 - Marginal tax rate)

= 13% × (1 - 35%)

= 13% × (65%)

= 0.13 × 0.65

= 0.0845

= 8.45%

7 0
3 years ago
The amount due on the maturity date of a $10,900, 60-day 6%, note receivable is: (Use 360 days a year.)
Marysya12 [62]

Answer:

$11,009

Explanation:

Calculation to determine The amount due on the maturity date

Amount due =10900 x .06 x 1/6 = $109 + $ 10900

Amount due=$11,009

Therefore The amount due on the maturity date is $11,009

5 0
3 years ago
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