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Semenov [28]
3 years ago
14

Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli

o is 17%, and on the zero-beta portfolio it is 8%. What is the expected return on a portfolio with a beta of .6?
Business
1 answer:
raketka [301]3 years ago
3 0

Answer:

10.4%

Explanation:

The computation of expected return on a portfolio is shown below:-

Expected return = Risk Free return + 5%Beta ( Market Return - Risk Free return)

= 5% + 0.60 × (17% - 8%)

= 5% + 5.4%

= 10.4%

Therefore for computing the expected return on a portfolio with a beta of .6 we simply applied the above formula.

The market return less risk free return is known as market risk premium

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Suppose businesses in general believe that the economy is likely to head into recession and so they reduce capital purchases. th
uranmaximum [27]
They would probably fire more workers to stay in business or/and raise prices.

Hope this helps!
4 0
3 years ago
Dr. Tylka is studying the way that people value relationships. For the purpose of her study, she defines an interest in relation
anygoal [31]

Answer:

Operationalization

Explanation:

Operationalization refers to the  process of defining the measurement of a phenomenon that is not directly measurable, though its existence is inferred by other phenomena. Dr. Tylka studies the way that people value relationships but she derived a subjective social variable that was based on her own personal opinion and feelings. Her opinions was inferred from her previous studies whose existence was deduced by other phenomena.

6 0
3 years ago
_____ is a method of determining what sales volume must be reached before total revenue equals total costs.?
lina2011 [118]
The answer is the option d. break-even analysis.

Break-even analysis is the method in which you make the incomes equal to the costs and expenses.

The income is the function that relates number of products manufactured and sold with the income, while the costs and expenses is the function that relates the number of products with the total cost.

When you make both income and costs equals you can determine the number of products that make you even (income = costs).
7 0
3 years ago
The capability-building process:_______.a. requires first developing the ability to do something, however imperfectly or ineffic
Dvinal [7]

Answer: Requires first developing the ability to do something, however imperfectly or inefficiently; second, translating this ability into a competence by learning to do the activity consistently well and at an acceptable cost; and then continuing to polish and refine its know-how in an effort to further improve its performance, ideally striving to match or beat rivals in performing the activity.

Explanation:

Capacity building involves an individual/organization learning to carry out their job task by starting with failures and successful outcomes, and continuing learning and attempting carrying out that task until perfection nearly attained when it comes to carrying out that job type.

6 0
4 years ago
Consider the case of the Henderson Company.
sashaice [31]

Answer:

I) Days sales outstanding (DSO) for all customers?      48.7days

= (53*0.9)+(10*0.1) = 48.7 days

II) Net sales?                                                                  $166.600

The Net sales = Gross sales - sales allowance  

The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==>  0.02 * 0.1 * 170 ===> 0.34 mn

∴ The Net sales = 17 - 0.34 mn = 16.66 mn

   Amount paid by discount customers?                     $13.600

Explanation:

I. General Credit Policy Information

  Credit stamps                                                               2/10 Net 30

  Days sales outstanding (DSO) for all customers    48.7days

  DSO for customers who take the discount (10%)      10days

  DSO for customers who forgo the discount (90%)    53days

II. Annual Credit Sales and Costs ($ millions)

  Gross sales                                                                 $170.000

  Net sales?                                                                   $166.600

  Amount paid by discount customers                      $13.600

  Amount paid by non discounted customers           $153.000

 Variable operating costs (82% of gross sales)         $139.40

 Bad debts                                                                    $0.0

 Credit evaluation & collection costs (10% of gross sales) $17.00

7 0
4 years ago
Read 2 more answers
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