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dexar [7]
3 years ago
15

Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 10.2 1.0 A 8.2 1.4 a. Calculate the re

turn predicted by CAPM for a portfolio with a beta of 1.4. (Round your answer to 2 decimal places.) b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
Business
1 answer:
denpristay [2]3 years ago
6 0

Answer:

a. 11.88%

b. -3.68%

Explanation:

Given that

Risk free rate = 6%

Beta = 1.4%

Market rate = 10.2%

Risk free rate = 6%

Alpha return = 8.2%

a. The computation of expected return of portfolio is given below:-

= Risk free rate + Beta (Market rate - Risk free rate)

= 6% + 1.4% (10.2% - 6%)

= 11.88%

b. The calculation of Alpha of portfolio is shown below:-

= Alpha return - Expected return

= 8.2% - 11.88%

= -3.68%

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Development that considers both current and future needs is referred to as______ development
andrey2020 [161]

Answer:

Sustainable

Explanation:

Sustainable development is involves utilization of resources to achieve our goals both in present and the future goals, Sustainable development can be categorized as

✓environmental

✓human

✓ social

✓economic

It should be noted that Development that considers both current and future needs is referred to as sustainable development

7 0
3 years ago
A Caterpillar tractor acquired on January 12 at a cost of $171,000 has an estimated useful life of 25 years. Assuming that it wi
Kay [80]

Answer and Explanation:

a. The computation of depreciation for each of the first two years by the straight-line method is shown below:-

Depreciation

= (Assets cost - Salvage value) ÷ Useful life

= ($171,000 - 0) ÷ 25

= $6,840

For First year = $6,840

For Second year = $6,840

It would be the same for the remaining useful life

b. The computation of depreciation for each of the first two years by the double-declining-balance method is shown below:-

First we have to determine the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 25

= 4%

Now the rate is double So, 8%

In year 1, the original cost is $171,000, so the depreciation is $13,680 after applying the 8% depreciation rate

And, in year 2, the ($171,000 - $13,680) × 8% = $12,585.60

7 0
3 years ago
How is the dual credit program different from the AP program?
olga55 [171]

AP courses are part of the College Board organization that requires students to take a rigorous test at the end of the course to potentially earn college credit. A dual credit course on the other hand is an official course at Loyola University Chicago.

3 0
3 years ago
Read 2 more answers
At what age did Henry Ford began his innovation?
Anit [1.1K]

Answer:

There is a prophetic story of how the 13-year-old Henry Ford got a pocket watch for his birthday, and then proceeded to take it apart. He simply wanted to know how it worked. Which kick started his career.

Explanation:

5 0
4 years ago
One way for high school students to explore their interests is to:
Fed [463]
Based on the options given, the answer is d.get involved in extracurricular activities.
Joining extracurricular activities and organizations may help them choose what they love to do and explore various options. Thank you for your question. Please don't hesitate to ask in Brainly your queries. 
3 0
3 years ago
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