Answer:
Beta is 1.8
Explanation:
CAPM or capital asset pricing model is used to compute expected return on stock by establishing relationship between expected returns and systematic risk (also called beta).
Given:
Return on mutual fund = 14%
Risk free rate (Rf) = 5%
Market return (Rm) = 10%
Risk premium = Rm - Rf
= 10% - 5%
= 5%
CAPM formula:
Returns = Rf + β(Rp)
14% = 5% + β(5%)
β = 9 / 5
β = 1.8
Beta of mutual fund is 1.8
Since the problem doesn’t give the choices for these questions. I will be giving you the factors that affect the elasticity:
1. Labor costs as percent of total costs – when labor expenses have a high share in total costs then labor demand is more elastic.
2. Easiness and cost of factor substitution – when the firm can substitute rapidly and effortlessly between labor and capital inputs.
3. Price elasticity of demand for the final output produced – if the business is working an extremely competitive market where the final demand of the product is elastic and as a result the demand for labor is more elastic.
Answer:
The expected return on the stock is 9.785%
Explanation:
The expected rate of return on a stock is the return of the stock expected in different scenarios multiplied by the probability that those scenarios will occur. The expected return can be calculated as follows,
r = rA * pA + rB * pB + ... + rN * pN
- Where,
- rA, rB to rN expects return under different scenarios
- pA, pB to pN represents the probabilities of each scenario
Thus,
r = 0.157 * 0.15 + 0.098 * 0.73 + 0.023 * 0.12
r = 0.09785 or 9.785
Answer:
$755 taxes due
Explanation:
Data provided in the question
Gross tax liability = $7,255
Credits available = $2,450
Taxes withheld by his employer = $4,050
So by considering the above information, the Jamison taxes due with his tax return is
= Gross tax liability - credits available - taxes withheld by his employer
= $7,255 - $2,450 - $4,050
= $755 taxes due
The statement above is false.
Property rights allude to the hypothetical and lawful responsibility for property by people and the capacity to decide how such property is utilized. In numerous nations, including the United States, people for the most part practice private property rights – the privileges of private people to collect, hold, delegate, lease or offer their property. In financial matters, property rights shape the reason for all market trade, and the allotment of property rights in a general public influences the productivity of asset utilize.
