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DedPeter [7]
3 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:
monitta3 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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Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries
Kipish [7]

Missing Part of Question:

The question was missing information. Luckily, I found the question on the internet and I am attaching it here for ease of understanding.

<h2>Answer:</h2>

In the order of the functions:

1. Bretton Woods Institutions

2. UN

3. GATT

4. WTO

5. GTO or G20

<h2>Explanation:</h2>

1. The Bretton Woods Institutions are the World Bank and the International Monetary Fund (IMF).

2. The United Nations is an intergovernmental organization with an objective of maintaining international peace and security.

3. The General Agreement on Tariffs and Trade (GATT) is a treaty between many countries. Its aim is to promote international trade by reducing or eliminating trade barriers like quotas or tariffs.

4. The World Trade Organization is also an intergovernmental organization. Its function is the regulation of international trade among nations.

5. The G20 (i.e. The Group of 20) is an international forum for the governments and central bank governors consisting of 19 countries and the European Union (EU). It focuses on the promotion of international financial stability.

3 0
3 years ago
Emma Jones Company has the following information​ available: Account ​12/31/2019 ​12/31/2018 Accounts Payable ​$76,500 ​$80,000
leonid [27]

Answer:

B. No.

Explanation:

The formula to compute the quick ratio is shown below:

Quick ratio = (Quick assets) ÷ (current liabilities)

where,

For 2018

Quick assets = Accounts​ Receivable, net  + Cash and Cash Equivalents + Short minus Term Investments

= $49,000 + $70,000 + $44,000

= $163,000

And, the current liabilities = Accounts Payable +  Income Taxes Payable

                                           =  ​$80,000 + 5,000

                                           = $85,000

Now put these values to the above formula  

So, the ratio would equal to

= $163,000 ÷ $90,000

= 1.81 times

For 2019

Quick assets = Accounts​ Receivable, net  + Cash and Cash Equivalents + Short minus Term Investments

= $42,300 + $43,700 + $27,000

= $113,000

And, the current liabilities = Accounts Payable +  Income Taxes Payable

                                           =  ​$76,500 + 2,000

                                           = $78,500

Now put these values to the above formula  

So, the ratio would equal to

= $113,000 ÷ $78,500

= 1.43 times

No, as it shows declining from 2018 to 2019

3 0
3 years ago
A customer buys shares of a stock that had its initial public offering 5 years ago. Which statement is TRUE regarding prospectus
Luda [366]

Answer:

A prospectus is not required because the initial public offering happened 5 years ago

Explanation:

A prospectus is a legal document which is to be filled by Securities and Exchange Commission (SEC) that reflects the details with respect to the investment offering to the public in terms of stocks, bond, mutual funds, etc

On the other hand the initial public offering is the offering done by the company for the first time to the public related to the investment

Since in the question it is mentioned that the customer purchased the shares of stock but its initial public offering is done 5 years ago so no prospectus is required

3 0
3 years ago
Which of the following is a condition in the general environment that if exploited effectively helps a company reaches strategic
valentina_108 [34]

Answer:

The correct answer to the following question will be "Opportunity".

Explanation:

  • A market opportunity to sell or contract any commodity, facility, facilities, etc. that will allow the buyer-licensee to set up a business.
  • The licensor of a marketing opportunity usually announces that he or she will protect or support the purchaser in finding a suitable destination or deliver the commodity to the cardholder-licensee.

Therefore, Opportunity is the right answer.

5 0
3 years ago
If one of the parties to a contract is forced to agree out of fear of harm, then genuineness of assent has not been achieved. Th
Hoochie [10]

Answer:

duress

Explanation:

A contract may not be enforced it any of the parties does not give genuine or real assent, i.e. they freely agree with the contract terms.

Duress happens when one of the parties threatens to do something bad or wrong to the other party in order to force them to enter a contract. Contracts agreed under duress can be invalidated.

7 0
3 years ago
Read 2 more answers
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