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blagie [28]
3 years ago
6

the​ risk-free rate is 3​% and you believe that the​ S&P 500's excess return will be 10​% over the next year. If you invest

in a stock with a beta of 1.2 ​(and a standard deviation of 30​%), what is your best guess as to its expected excess return over the next​ year?
Business
1 answer:
horrorfan [7]3 years ago
7 0

Answer:

The expected excess return will be 11.4%

Explanation:

The S&P 500's excess return is the market return (rM). Using the CAPM model or the SML approach, we can calculate the required/expected rate of return on the stock we are investing in.

The expected rate of return is,

r = rRF + β * (rM - rRF)

Thus, return on the invested stock will be:

r = 0.03 + 1.2 * (0.1 - 0.03)

r = 0.114 or 11.4%

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Which statement about attitude is correct?
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Your answer would be D.


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Choose the preferred sentence from each pair and justify your choice. a. (1) Lindsay's request to telecommute was denied, but sh
mr_godi [17]

Answer:

(2). Although her request to telecommute was denied, Lindsay will begin a flextime schedule in two weeks.

Explanation:

The second choice would be the most preferred as it conveys the idea in a formal and precise manner. <u>The complex sentence beginning with the subordinate clause already hints the listener that the key message is yet to come. It helps him/her in understanding the intended message without any confusion</u>. The first sentence fails to create that specificity as it connects two independent ideas which remove the listener's focus from the main idea i.e. 'she will begin a flextime schedule in two weeks.' Thus, option (2) adopts the correct format and sentence structure to deliver the message effectively, efficiently, and precisely.

4 0
3 years ago
As price elasticity of supply increase the supply curve?​
egoroff_w [7]

Answer:

As price elasticity of supply increase the supply curve will be closer to the horizontal axis thus shallower.

Explanation:

The price elasticity of supply can be defined as a measure of how much the price of a good or service changes with a corresponding change in the supply of that specific good or service. This means that a good or service can be described as either elastic or inelastic depending on how it's price and supply parameters behave. Inelastic goods are those goods whose price change with reference to their supply do not change much. These goods are sometimes referred to as essentials since people tend to buy them even if the prices are high. On the other hand, elastic goods are those ones whose price fluctuates depending on the supply. These goods are called luxuries, since people buy them only when their prices are low, and avoid them when the price rises.

The price elasticity of supply can be determined using the expression below;

E=%Q/%P

where;

E=elasticity of supply

%Q=percentage change in quantity supplied

%P=percentage change in the price for the corresponding changes in quantity supplied

The supply curve generally represents changes in price verses the changes in quantity supplied. The price is plotted on the left vertical axis, against a corresponding quantity supplied on the horizontal axis.

A product that has more price elasticity of supply will cause the supply curve to be shallower: closer to the horizontal axis. On the other hand a product with less elastic supply will make the supply curve to be steeper: closer to the vertical.

6 0
3 years ago
How might reading about a case or hearing about it on TV influence jurors?
yaroslaw [1]

Answer: It may influence their decision depending on the tone the case was explained, rather than giving the subject a fair trial.  

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People, depending on their opinions, can influence others depending on how they talk about their subject because of bias.

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