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DedPeter [7]
2 years ago
10

A stock has a beta of 1.28, the expected return on the market is 12 percent, and the risk-free rate is 4.5 percent. What must th

e expected return on this stock be? Expected return
_____%.
Business
1 answer:
monitta2 years ago
5 0

Answer:

The expected return=17.78 percent

Explanation:

Step 1: Determine risk free rate, beta and market risk premium

risk free rate=4.5%

beta=1.28

market risk premium/return on market=12%

Step 2: Express the formula for expected return

The expected return can be expressed as follows;

ER=RFR+(B×EMR)

where;

ER-expected return

RFR=risk free rate

B=beta

EMR=expected market return

replacing with the values in step 1;

ER=(4.5)+(1.28×12)

ER=4.5+13.28

ER=17.78

The expected return=17.78 percent

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Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct
nadezda [96]

Answer:

The correct answer is option (c) $264 underapplied

Explanation:

Given data;

Direct labour hour = 22160

Total Manufacturing overhead cost= $585,024

Actual direct labor hour = 22150

Actual Manufacturing overhead cost = $585024

Calculating the Predetermine overhead rate using the formula;

Predetermined Overhead rate=Total Overhead Cost/Total Direct Labor Hour

Predetermined Overhead rate = $585024/22160

                                                      =$26.4 per labor hour

To determine the under-applied amount of overhead cost, we use the formula;

Under−Applied amount= Estimated Overhead Cost*Actual Overhead Cost

Substituting into the formula, we have

                          (22150*26.4)-585024

      Under applied  = $ 264

                       

8 0
2 years ago
According to pmi’s agile’s practice guide, which roles are considered appropriate agile roles?
Mamont248 [21]

Traditional predictive project management and the PMI's Project Management Body of Knowledge remain inextricably linked, notwithstanding changes made in the Sixth Edition (PMBoK).

Concerns for Agile/Adaptive Environments are covered in each of its 10 Knowledge Areas. But generally, they are only two or three paragraphs long. The primary goal is raising awareness.

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6 0
2 years ago
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhea
Butoxors [25]

Answer:

b. $1,144 unfavourable.

Explanation:

The computation of the  variable overhead efficiency variance is shown below:

= (Actual Hours - Standard Hours) × Standard rate per hour

=(1,700  - 8.1 × 200 units) × $14.30

= 80 × $14.30

= $1,144 unfavorable

hence, the variable overhead efficiency variance is $1,144 unfavorable

Therefore the option b is correct

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3 years ago
Regarding student loans, which of the following is not true?
Degger [83]
Where's the options to choose from.
8 0
2 years ago
A monopolist finds that a person’s demand for its product depends on the person’s age. The inverse demand function of someone of
KiRa [710]

Explanation:

A manufacturer of computer memory chips produces chips in lots of 1000. If nothing has gone wrong in the manufacturing process, at most 7 chips each lot would be defective, but if something does go wrong, there could be far more defective chips. If something goes wrong with a given lot, they discard the entire lot. It would be prohibitively expensive to test every chip in every lot, so they want to make the decision of whether or not to discard a given lot on the basis of the number of defective chips in a simple random sample. They decide they can afford to test 100 chips from each lot. You are hired as their statistician.

There is a tradeoff between the cost of eroneously discarding a good lot, and the cost of warranty claims if a bad lot is sold. The next few problems refer to this scenario.

Problem 8. (Continues previous problem.) A type I error occurs if (Q12)

Problem 9. (Continues previous problem.) A type II error occurs if (Q13)

Problem 10. (Continues previous problem.) Under the null hypothesis, the number of defective chips in a simple random sample of size 100 has a (Q14) distribution, with parameters (Q15)

Problem 11. (Continues previous problem.) To have a chance of at most 2% of discarding a lot given that the lot is good, the test should reject if the number of defectives in the sample of size 100 is greater than or equal to (Q16)

Problem 12. (Continues previous problem.) In that case, the chance of rejecting the lot if it really has 50 defective chips is (Q17)

Problem 13. (Continues previous problem.) In the long run, the fraction of lots with 7 defectives that will get discarded erroneously by this test is (Q18)

Problem 14. (Continues previous problem.) The smallest number of defectives in the lot for which this test has at least a 98% chance of correctly detecting that the lot was bad is (Q19)

(Continues previous problem.) Suppose that whether or not a lot is good is random, that the long-run fraction of lots that are good is 95%, and that whether each lot is good is independent of whether any other lot or lots are good. Assume that the sample drawn from a lot is independent of whether the lot is good or bad. To simplify the problem even more, assume that good lots contain exactly 7 defective chips, and that bad lots contain exactly 50 defective chips.

Problem 15. (Continues previous problem.) The number of lots the manufacturer has to produce to get one good lot that is not rejected by the test has a (Q20) distribution, with parameters (Q21)

Problem 16. (Continues previous problem.) The expected number of lots the manufacturer must make to get one good lot that is not rejected by the test is (Q22)

Problem 17. (Continues previous problem.) With this test and this mix of good and bad lots, among the lots that pass the test, the long-run fraction of lots that are actually bad is (Q23)

7 0
2 years ago
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