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Jlenok [28]
3 years ago
5

Assume that the risk-free rate of interest is 5% and the expected rate of return on the market is 17%. A stock has an expected r

ate of return of 6%. What is its beta?
Business
1 answer:
crimeas [40]3 years ago
6 0

Answer:  ER(P) = Rf + β(Rm-Rf)

                 6      = 5 + β(17-5)

                 6      = 5 + β(12 )

            6 - 5     = 12β

                1        = 12β

                 β       =  1/12

                 β       = 0.083

Explanation: In determining the Beta of the stock, we need to apply capital asset pricing formula and then make Beta the subject of the  formula. Other variables will be substituted with the exception of Beta, which becomes the subject of the formula.                                                                                          

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Answer:

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4 0
3 years ago
How do u win from the stocks.
dimaraw [331]
You can buy at a low price for a stock and sell it for a higher price.
4 0
3 years ago
A merchandising company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. Sales
Svetradugi [14.3K]

Answer:

The total selling expenses for the quarter will be $25,800

Explanation:

The computation of the total selling expenses for the quarter is shown below:

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where,

Salaries = Expected salaries × number of months in one quarter

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             = $15,000

Commission = (January sales +  February Sales + March Sales) × Commission percentage

= ($25,000 + $30,000 + $35,000) × 10%

= $9,000

And, the adverting equal to

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= $600 × 3 months

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Now put these values to the above formula

So, the value would be equal to

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3 0
3 years ago
GDP per person tells us the income and expenditure of the a. richest person in the economy. b. poorest person in the economy. c.
ale4655 [162]

Answer:

The correct answer is letter "C": average person in the economy.

Explanation:

The Gross Domestic Product (GDP) measures the level of output of a country given a certain period -by quarter and year, usually. It considers <em>government expenditures, private investments, consumer spending, </em>and <em>net exports </em>(exports minus imports).  

The GDP per capita represents the GDP per person and is calculated by dividing the GDP by the population of a country. GDP per capita represents an approximate of the expenses of an individual. Smaller richer countries such as Luxembourg or Switzerland tend to have higher GDP per capita.

8 0
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The following data apply to Elizabeth's Electrical Equipment: Value of operations $20,000 Short-term investments $1,000 Debt $6,
Liula [17]

Answer:

b. $50.00

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3 years ago
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