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KiRa [710]
3 years ago
11

g According to the CAPM, what is the expected rate of return for a stock with a beta of 1.2. when the risk-free rate is 6% and t

he market rate of return is 12%
Business
1 answer:
lys-0071 [83]3 years ago
6 0

Answer:

20.40%

Explanation:

According to CAPM :

expected rate of return = risk free rate + (beta x market rate of return)

6% + (1.2 x 12%) = 20.40%

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U-Can-Own-It Corporation sells appliances to less educated consumers, inclnding Viv, on installment plans U-Can-Own-It files a s
kirill115 [55]

The court will most likely consider the parties' relative bargaining power.

<u>Option: C</u>

<u>Explanation:</u>

Bargaining power is the collective ability of groups to put control over one another in a circumstance. If all sides are in a dispute on an equivalent basis, then they would have equal bargaining power, such as in a reasonably free market, or between a monopoly and monopsony fairly balanced.

Purchaser bargaining power relates to the leverage customers may impose on businesses to get them to offer higher quality goods, improved customer satisfaction and lower costs. A powerful purchaser will make a market more profitable and diminish the seller's profit potential.

5 0
3 years ago
You are planning to save for retirement over the next 25 years. To do this, you will invest $1,000 a month in a stock account an
STALIN [3.7K]

Answer:

Monthly withdraw= $12,452.6

Explanation:

<u>First, we need to calculate the total accumulated at the moment of retirement. We will use the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Stock:

Monthly investment= $1,000

Interest rate= 0.09/12= 0.0075

Number of periods= 25*12= 300 months

FV= {1,000*[(1.0075^300) - 1]} / 0.0075

FV= $1,121,121.94

Bond:

Monthly investment= $700

Interest rate= 0.06/12= 0.005

Number of periods= 25*12= 300 months

FV= {700*[(1.005^300) - 1]} / 0.005

FV= 485,095.77

Total FV= 1,121,121.94 + 485,095.77

Total FV= $1,606,217.71

<u>Now, the annual withdrawal:</u>

<u></u>

Interest rate= 0.07/12= 0.005833

Number of months= 12*20= 240

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (1,606,217.71*0.005833) / [1 - (1.005833^-240)]

Monthly withdraw= $12,452.6

3 0
3 years ago
Which adjective best describes you at work? a.unique b.orderly
UkoKoshka [18]

Answer:

B

Explanation:

being unique can be good at work but making sure you're organized doing your job is vital.

5 0
3 years ago
Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW(A) . PW(B). If MAR
vivado [14]

Answer: The relationship between A and B project cannot be determined with the information given.

Explanation: The relationship between PW(A) and PW(B) is the correlation between project A and Project B in a portfolio.

This is not possible to be calculated with the information given.

But an expression of calculating this is;

PW is the present value of A and B projects.

MARR is the minimum acceptable rate of return

The calculate the correlation of the two project, divide MARR by the multiple of the two project.

That is;

Correlation = MARR ÷ [PW(A) × PW(B)]

Therefore;

Correlation = i11% ÷ [PW(A) × PW(B)]

This shows that the relationship cannot be determined with the limited Information supplied.

3 0
3 years ago
Mary spends $5 on food for her cat. This is an example of a: a. household buying goods and services in the factor market. b. hou
german

Answer:

household buying goods and services in the product market

Explanation:

The product market is where final goods and services are sold to households and firms.

The factor market is where factors of production are exchanged.

Mary is buying food for her cat. There are no indications that Mary is a business and that the food is a factor of production. Therefore, Mary is an household and she's purchasing from the product market.

I hope my answer helps you

8 0
3 years ago
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