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kotegsom [21]
3 years ago
7

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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3 years ago
Abby has a weekly budget of $75 to spend on fruit and vegetables. She decides to buy 2 pounds of organic fruit at a cost of $7.5
Gre4nikov [31]

Answer:

m=$10

Explanation:

money spent on organic fruit=2×$7.5= $15.0

money left=$75-$15=$60

she bought 6 lbs of organic vegetables,

.: money spent on each lb of vegetable × 6 = $60

m × 6 = $60

m = $60/6

m= $10

7 0
4 years ago
Read 2 more answers
If finance charges are not assessed on new credit card transactions during the period between the posting date and the due date,
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The period between the posting date and the due date, this period is called the grace period. In this period the finance charges are not assessed on new credit card.

<h3>What is grace period?</h3>

A grace period is a period of time after the due date during which payment can be made without incurring any penalties. In most mortgage loan and insurance arrangements, a grace period of 15 days is included.

A grace period allows a borrower or insurance client to postpone payment for a certain time after the due date has passed.

Thus, grace period is the period between the posting date and due date.

For further details about grace period, click here:

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7 0
3 years ago
Estate taxes are taxes on a person's estate when that person dies.
leva [86]
It's true because it can be State or Federal
8 0
3 years ago
Read 2 more answers
Nadia could not withdraw money from her checking account, even though it had been several weeks since she deposited a check. Wha
forsale [732]

Answer:

4) The FDIC Deposit Regulations Act

Explanation:

Federal Deposit Insurance Corporation (FDIC) was created by the Banking Act of 1933, and its main function if to provide deposit insurance to depositors in US depository institutions (banks, credit unions, etc.).

In an event of a bank failure, the FDIC protects the depositor's money as long as the bank is insured by the FDIC. The FDIC covers accounts of up to $250,000.

4 0
3 years ago
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