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Nana76 [90]
3 years ago
11

Apple has a Beta of 1.25. Assume that the risk-free rate of interest is 3% and that you expect the stock market will return 8% o

ver the next year. According to the Capital Asset Pricing Model (CAPM), the expected return of Apple is
Business
1 answer:
kondor19780726 [428]3 years ago
4 0

Answer:

9.25%

Explanation:

The computation of the expected return under the Capital Asset Pricing Model (CAPM) is shown below:

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 3% + 1.25 × (8% - 3%)

= 3% + 1.25 × 5%

= 3% + 6.25%

= 9.25%

The (Market rate of return - Risk-free rate of return) is also known as the market risk premium

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Answer:

Sorry if this is unclear btw!

Explanation:

A percentage is a number multiplied by 100. So, 200 ÷ 100 = 2. So, if you are adding 200% to a number, you only add 2. When multipliying by 200%, you multiply by 2. Same for subtraction and division!

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2 years ago
The most common measure of __________ is the spread between the number of stocks that advance in price and the number of stocks
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Answer:

d. firm-specific strengths that allow a company to differentiate its products from rivals or achieve lower costs than rivals.

Explanation:

Competitive advantage refers to the ability of a country or a company to produce a good or service using fewer inputs compared to its rival. The company can manufacture a larger quantity of goods using the same amount of factors of production as others.

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8 0
3 years ago
On September 1, 2018, Hiker Shoes issued a $102,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial B
balu736 [363]

Answer:

b. 11.87%

Explanation:

interest = $102,000*11%*8/12

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3 years ago
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