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Pie
3 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]3 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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Arturiano [62]

Answer:

If patty sues, the likely result is:

D. Patty may win under the doctrine of promissory estoppel.

Explanation:

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According to what hr uncle promised he gave her the amount which he promised to but this was done for a month and then without saying anything or giving any reason he stopped giving her the amount he promised to.

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3 years ago
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Option (B) is correct.

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