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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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lana [24]

Answer:

The $125 income from the new job - relevant (A)

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The $15 cost for gas - relevant (D)

The $75 per month that Isabella spends for clothing and The time Isabella spends volunteering at the animal sanctuary. - Irrelevant (E)

Explanation:

(A) the income from the new job is relevant. It is the wages she will receive per week

(B) the library is irrelevant as it would not have to leave this job

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8 0
4 years ago
Need help 1.-10. A.-J.
Masteriza [31]

1. The Party ordered to pay a draft is the <u>drawee</u>

2. Instruction that directs a bank not to pay a check that has been lost or stolen is a <u>stop payment order</u>.

3. Party to whom commercial paper is made available is the <u>payee</u>.

4. Unconditional written order by one person that directs another person to pay money to a third person is a <u>bill of exchange.</u>

5. Type of draft by which a bank depositor orders the bank to pay money, usually to the order of a third party or to the bearer of the instrument is a <u>check</u>.

6. Person who executes or draws the draft and orders payment be made is the <u>drawer</u>.

7. The drawee's promise to pay the draft when due is called <u>acceptance</u>.

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aniked [119]

Answer:

D) By creating a new ad group for the sale.

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Swee Yin must first create a new ad group in order for their campaign and products to show up on search results whenever google user search any related item or topic. Since this campaign only last a limited time, Swee Yin must set when the campaign starts and when it should end. They could post there campaign ads in both google search network and google display.

4 0
4 years ago
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ikadub [295]

Answer:

Variable inputs;Fixed inputs

Explanation:

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4 0
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Svet_ta [14]

Answer:

has to be b

Explanation:

ik this feom the website

4 0
2 years ago
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