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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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Steven Diaz just took a job with Harley Davidson. As part of his employment agreement, Harley Davidson required Steven to sign a
il63 [147K]

Answer:

Non-compete

Explanation:

A non-compete agreement is when an emoloyee agrees not to enter into or start a similar profession in competition against her employer.

Majority of agreements stipulated the length of time an employee isn't allowed to enter into or start a similar profession in competition against her employer.

I hope my answer helps you

5 0
4 years ago
A property owner had a stroke and is unable to take care of himself. He has no heirs so a court placed him in a nursing home and
julia-pushkina [17]

Answer: Tax lien

Explanation:

Tax lien could be defined as a federal obligation which the government carries out when you fail to pay tax debt. The government accumulates the total tax.

The property owner got exposed as regards tax payment plan which was not paid.

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3 0
3 years ago
Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventor
Y_Kistochka [10]

Answer:

d. $141,000

Explanation:

As the following information is given

Purchase of raw material = $165,000

Beginning Raw material balance = $22,000

Completed direct material = $141,000

Completed indirect material = $13,000

Since the work in progress includes only direct material i.e $141,000 as indirect material is allocated to the overhead account. Therefore, only $141,000 of raw material is transferred to work in process account

So other information which is mentioned is ignored

3 0
3 years ago
Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top Brew earned $200,000
Ainat [17]

Answer:

$21,000

Explanation:

Economic profit = accounting profit - implicit cost

Accounting profit= total revenue - explicit cost

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Implicit cost includes salary lost due to opening the shop and interest that could have been earned on the savings  

Total explicit cost = $80,000 + $40,000 + $15,000 = $135,000

Accounting profit = $200,000 - $135,000 = $65,000

Economic profit = $65,000 - ($40,000 + $4,000) = $21,000

7 0
3 years ago
Using the information below, calculate net income for the period: Sales revenues for the period $ 1,318,000 Operating expenses f
Vanyuwa [196]

Answer:

Net Income                   516,000

Explanation:

Net income = revenue - expenses

sales revenue              1,318,000

COGS                          (549,000) (A)

Operating expenses <u>  (253,000)  </u>

Net Income                   516,000

(A)

<u>To calculate the COGS we will use the inventory identity</u>

$$Beginning Inventory + production = Ending Inventory + COGS

50,000 + 554,000 = 55,000 + COGS

50,000 + 554,000 - 55,000 = COGS

COGS = 549,000

4 0
3 years ago
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