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3 years ago

Which one of the following should earn the most risk premium based on CAPM?

Business

1 answer:

Nina [5.8K]3 years ago

5 0

Answer:

The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.

The correct answer is B

Explanation:

A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.

A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.

A stock with a beta of 0.74 does not provide the highest risk premium.

Us treasury bill does not provide any risk premium since it is the risk-free rate.

A portfolio with a beta of 1.01 does not produce the highest risk premium.

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In addition to the following closing costs listed below, the buyer pays a realtor commission that is 3.5% of the loan amount. Cl

kobusy [5.1K]

Answer:

$8,097

Explanation:

8 0

3 years ago

On June 30, Nance Company receives a $5,000, 90-day, 4% note from a customer as payment on her account. How much interest will b

DedPeter [7]

Answer:

50$

Explanation:

5000 x 4% x 90/360 = 50$

5 0

2 years ago

Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $153,000 Credit sale

rodikova [14]

Answer:

Balance of allowance for doubtful accounts after Bad debt Expense is $2700

Explanation:

given data

Cash sales= $153,000

Credit sales = $453,000

Selling and administrative expenses = $113,000

Sales returns and allowances= $33,000

Gross profit = $493,000

Accounts receivable = $140,000

Sales discounts = $17,000

doubtful accounts credit balance = $1,500

solution

we know here Total Bad Debit = 3% of accounts receivable

that is Total Bad Debit = 0.03 × $140,000

Total Bad Debit = $4200

so here allowance for doubtful account credit balance = $1500

Balance of allowance for doubtful accounts after Bad debt Expense will be

Balance of allowance for doubtful accounts = $4200 - $1500

Balance of allowance for doubtful accounts = $2700

6 0

4 years ago

In the development of the ipad 3, it is very likely that apple will develop an initial ______ and then test its performance and

hjlf

<span>In the technological sector a new product start its live as a prototype, then the enterprise use various consumer test panel to see the reaction of the potential costumers in real time environments and check how the prototype behaves. With the information gathered from the costumers tests panels the company can make adjustments <span>improve the prototype based on the feedback of the people that actually used it and release a better final version of the product.</span></span>

4 0

4 years ago

(1 point)

9966 [12]

Answer:

The correct answer is Cash to Close number

Explanation:

Closing disclosure is the disclosure which provided by the lender to the person 3 days before closing. It states the final costs as well as the terms of the mortgage.

And the amount of money which is required to close so that loan can be processed is referred to as the Cash to close number. In other words, it is the amount needed to bring the table for closing the deal involving the closing cost and down payment.

4 0

3 years ago