1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
A company began a new development project in 2017. The project reached technological feasibility on June 30, 2018, and was avail
o-na [289]

Answer:

$818,935

Explanation:

Percentage of-revenue method:

$4,000,000

($4,000,000 + 6,500,000) = $10,500,000

Hence;

$4,000,000/$10,500,000

= 38.09 %

Amortization = 38.09% ×$2,150,000

= $818,935

Therefore the amortization of the software development costs would be $818,935

8 0
3 years ago
Miller owns a personal residence witha fair market value of $308,000 and an outstanding first mortgage of $246,400. Miller gets
marysya [2.9K]

Answer: $246,400

Explanation:

Qualified residence indebtedness refers to the mortgage that's taken to purchase or improve on one's main home.

Based on the information given above, the on the $246,400 of the first and second mortgage is treated as qualified residence indebtedness.

3 0
3 years ago
Is Criminal investigator a venture?<br> thanks
finlep [7]

Explanation:

Is there a private detective that the venture capital company contracts? Does it investigate the start fraud? Answer 5 SHART Redux Time Reports REQUEST PLUS REQUID TIME REPORTS can be far from this growth list. Have you ever been online and offline? Later below the procedure for reporting such incidents. 1 Answer  Paul Cohn, I made that VC answered on August 4, 2015. Risk capital Working process is very complete and it will be difficult to detect any kind of fraud. VC sometimes helps diligent using an external company. In general, VCs do not adopt private detective, but often use a company that verifies the background verification. Some of the background control companies may exceed recording recording, but can do a private research work as necessary, but it does not happen frequently (it has never disappeared so much disappeared). The records are considering the following: Confirmation of training for education A pre-employment confirmation is to find legal issues that participate in personal credit issues and find false statements of the contractor / administration team. With regard to your education and employment history, it may be possible to see if you have other legal and credit problems, do not disclose. It is very unusual to find a "fraud", but it is possible to make sure that VC asks entrepreneurs questions, and at least the contractor can confirm that all the company's product events fully advertise that you can find it. After the investment.

6 0
2 years ago
Read 2 more answers
Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for e
lesya [120]

Answer:

Total cost= $930

Explanation:

Giving the following information:

Copy Center pays an average wage of $12 per hour.

Overhead rate= $18 per direct labor hour

Job M-47:

used $330 of direct materials and took 20 direct labor hours of labor to complete.

Total cost= direct material + direct labor + allocated overhead

Total cost= 330 + 20*12 + 20*$18= $930

3 0
3 years ago
The Morrit Corporation has $1,080,000 of debt outstanding, and it pays an interest rate of 11% annually. Morrit's annual sales a
alukav5142 [94]

Answer:

3.020

Explanation:

Morrit Corporation

interest amount = $1,080,000*.11 = $118,800

Net profit = 3% *$6,000,000= $180,000

Net profit + tax = profit before tax =

180000/.75 = 240000

Profit before tax + Interest = Earning before interest and tax

= $240,000+$118,800 = $358,800

TIE ratio= EBIT/Interest = $358,800/118,800

= 3.020

Therefore the TIE ratio is 3.020

7 0
3 years ago
Other questions:
  • It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a
    13·1 answer
  • Which of the following is a true statement about closing the books of a corporation?A)Expenses are closed to the Expense Summary
    7·2 answers
  • One significant component of ____ can be the investment a seller makes in equipment or in the hiring of skilled employees to sup
    9·1 answer
  • The accountant at Metlock, Inc. is figuring out the difference in income taxes the company will pay depending on the choice of e
    6·1 answer
  • Ben has two options this weekend. He could work at his job and earn $10 per hour for three hours, or he could go to a concert fo
    5·1 answer
  • An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last​ year, she purchased $7,000 worth
    7·1 answer
  • MC 1
    8·1 answer
  • Acme Corp. is conducting a business impact analysis for the threat of ransomware impacting its organization. The company determi
    6·1 answer
  • The following statements regard product differentiation in monopolistic competition. Label the following statements as being eit
    13·1 answer
  • increases in government spending are not very effective in offsetting real shocks because they shift the:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!