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Ede4ka [16]
3 years ago
10

According to the capital asset pricing model (CAPM), the security market line is a straight line. The intercept of this line sho

uld be equal to
Business
1 answer:
melisa1 [442]3 years ago
7 0

Answer: C. The risk-free rate

Explanation: According to the Capital Asset Pricing Model, the security market line is a straight line. The intercept of this line should be equal to:

A. Zero

B. The expected risk premium on the market portfolio

C. The risk-free rate

D. The expected return on the market portfolio

The intercept of the security market line (This line shows the expected rate of return of a security as a function of systematic, non-diversifiable risk (beta), in other words, it is simply the line on which all capital investments lie) is equal to the risk-free interest rate (the theoretical rate of return of an investment with no risk of financial loss) according to the Capital Asset Pricing Model (CAPM).

The line is represented graphically as a straight line with risk on its horizontal axis, which is the independent variable, and expected return on the vertical axis, which is the dependent variable. The security market line also shows that investors would want higher rates of return with increasing levels of risk taken.

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The fact that only 63 percent of high school graduates have broadband internet access at home while almost 90 percent of college
Mnenie [13.5K]

The answer is digital divide.

Digital divide refers to a concept where access, use, and impact of information and communication technologies (ICT) are not distributed evenly across a population.

There might be segmentation due to the location of the individuals (where city dwellers might have faster internet access compared to those who live in rural areas); or socioeconomic conditions such as the one provided in the question, where educational background impacts broadband internet access.

3 0
3 years ago
Competitive advantage is: Easily duplicated by competitors Having a super idea The aggregation of factors that sets the small bu
lara [203]

Answer:

The aggregation of factors that sets the small business apart from its competitors and gives it a unique position in the market.

Explanation:

Competitive advantage  is the edge in the market a business has over its competition resulting from offering consumers a better value, be it by offering lower prices  on equivalent services and products or by providing products or services of a better quality than its competitors  justifying higher prices.

The answer choice that better fits within the definition above is "The aggregation of factors that sets the small business apart from its competitors and gives it a unique position in the market".

3 0
3 years ago
If, during the year, total liabilities increased by $95,000 and total stockholders' equity decreased by $75,000, what is the amo
eimsori [14]

Answer:

Total Assets at the end of the year increased by 20.000.

Explanation:

The accounting equation said:

Equity = Total Assets - Total Liabilities

It means that the difference between Assets and Liabilities must be cover with Equity, the movements during the year in Liabilities and Equity must be reflected ni the Total Assets, that is why we have to increase Assets by 20.000 so the equation keep it validity

6 0
3 years ago
An accountant increases the price he charges for his services by 66 percent. In​ response, the demand for his services decreases
Rama09 [41]

Answer:

Decrease

Explanation:

The accountant's revenue will decrease because the demand for his services has fallen by 1,818%, while the price he charges has only gone up by 66%.

The rise in prices will not be enough to cover the losses for such a deep fall in demand.

For example, suppose that before, the accountat used to complete 200 services a month for $100 per year, his total revenue is = 200 x $100 = $20,000.

Now, he will charge 68% more, the new service fee is $168, but demand for his services will now be a negative 3436 (200 x 1,818% = 3636), so his revenue will be 0, or even, negative (he could get into debt to afford his expenses).

7 0
3 years ago
Which of the following will increase a company’s current liabilities? You may select more than one answer.
vichka [17]

Answer:

A company purchases inventory on credit.

Explanation:

Current liabilities are those that have to be settled within the fiscal year. The statement above does not specify if the credit has to be paid within the fiscal year, but most likely it has to, because inventories do not usually represent a long-term debt.

So under this sceneario, purchasing inventory on credit would represent an increase in the current liabilities of the firm.

8 0
3 years ago
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