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3 years ago

According to the Capital Asset Pricing Model (CAPM), correctly priced securities:

Business

1 answer:

miskamm [114]3 years ago

5 0

Answer:

A) have zero alphas

Explanation:

Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.

This is why the CAPM model only considers beta in its calculation.

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At the end of the current accounting period, Ringgold Co. recorded depreciation of $15,000 on its equipment. The effect of this

kolbaska11 [484]

Answer:

B)owners' equity and decrease assets.

Explanation:

From the question, we are informed about Ringgold Co. Whereby At the end of the current accounting period, Ringgold Co. recorded depreciation of $15,000 on its equipment. In this case, The effect of this entry on the company's balance sheet is to decrease owners' equity and decrease assets. Depreciation can be regarded as type of expense that brings reduction in value of an asset. It can be regarded as scheduled and not estimated expense . Depreciation can be recorded on balance sheet, as well as cash flow statement.

3 0

3 years ago

Many classic entrepreneurs are _____ who start small and plan to keep their business small. Group of answer choices interpreneur

Lisa [10]

Many classic entrepreneurs are micropreneurs who start small and plan to keep their business small.

Business is the interest of making one's residing or being profitable by producing or buying and selling products. it's also "any hobby or agency entered into for profit. A enterprise is defined as an agency or enterprising entity engaged in industrial, industrial, or professional sports. organizations can be for-income entities or non-income groups. enterprise kinds variety from confined liability businesses to sole proprietorships, agencies, and partnerships. The definition of commercial enterprise is an career or trade and the purchase and sale of services or products to make a earnings. An example of enterprise is farming. An instance of commercial enterprise is a residence sale.

Learn more about business here:brainly.com/question/24553900

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3 0

1 year ago

As an investor you have a required rate of return of 12 percent for investments in risky stocks. You have analyzed three risky f

Darina [25.2K]

Answer:

Explanation:

Expected annual growth rate in dividends 7%

Dividend growth Model= Pv=Do(1+g)/Ke-g

present value = 1(1+7%) / 12%-7%

present value =1.07 /5%

present value =21.4

Expected annual growth rate in dividends 2%

Dividend growth Model= Pv=Do(1+g)/Ke-g

present value = 1(1+2%) / 12%-2%

present value =1.02 /10%

present value =20.4

Expected annual growth rate in dividends -1%

Dividend growth Model= Pv=Do(1+g)/Ke-g

present value = 1(1+(-1)%) / 12%-2%

present value =0.99/10%

present value =7.69

5 0

3 years ago

If a bank invested $75 million in a two-year asset paying 12 percent interest per year and simultaneously issued a $75 million o

hammer [34]

Answer:

The net interest income in two years would $1,500,000 and $375,000

Explanation:

In order to calculate the net interest income in two years, we have to calcuate the following:

First we have to Calculate the interest income:

Year 1 = $ 75,000,000*12% = 9,000,000

Year 2 = $75,000,000*12% = 9,000,000

Also, we have to Calculate the interest expense

Year 1 = ·$75,000,000 * 10% = $7,500,000

Year 2 = $75,000,000 * (10%+1.5%) = $8,625,000

Finally we can calculate the Net Interest Income which is = Interest income - Interest expense

Hence interest income of Year 1 = $9,000,000 - $7,500,000 = $1,500,000

interest income of Year 2 = $9,000,000 - $8,625,000 = $375,000

6 0

3 years ago

california, as a means to protect its environment, passes a law to ban a certain substance manufactured in kansas by xyz corpora

Svetllana [295]

The XYZ corporation may sue California for violating the dormant commerce clause. prohibits states from enacting legislation that significantly impedes interstate commerce.

<h3>What is interstate commerce?</h3>

Interstate commerce refers to the transacting or transportation of goods, services, or money across state lines.

Federal courts, for example, have considered cattle crossing a state line while grazing and the movement of pollutants across state lines to be interstate commerce in order to uphold Congress' regulatory jurisdiction.

In the United States, interstate commerce refers to any commercial transactions or traffic that cross state lines or involve more than one state.

The Interstate Commerce Act of 1887 is a federal law of the United States that was enacted to regulate the railroad industry, specifically its monopolistic practices.

The Act required railroad rates to be "reasonable and just," but it did not give the government the authority to set specific rates.

To learn more about interstate commerce, refer to:

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3 0

1 year ago