1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Harman [31]
3 years ago
13

Porter Inc's stock has an expected return of 10.75%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5%, what is

the expected market risk premium
Business
1 answer:
posledela3 years ago
8 0

Answer:

the expected market risk premium is 4.6%

Explanation:

The computation of the expected market risk premium is shown below:

As we know that

Expected rate of return = Risk free rate of return + beta × market risk premium

10.75% = 5% + 1.25 × market risk premium

5.75% = 1.25  × market risk premium

So, the market risk premium is

= 5.75% ÷ 1.25

= 4.6%

hence, the expected market risk premium is 4.6%

we simply applied the above formula

You might be interested in
Inbound marketing represents a fundamental shift in the way that organizations operate because it is ______-centric.
Natasha2012 [34]
<span>Inbound marketing represents a fundamental shift in the way that organizations operate because it is marketer-centric. This is an unconventional approach of systems since the usual ones is allowing the customers to be put first or customer-centric kind of approach. This kind builds the best relationship you can offer with the customer.</span>
4 0
3 years ago
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,600. The ending i
Lyrx [107]

Answer:

a. An additional layer of $12,760 is added to the 12/31/2021 balance.

Explanation:

The computation of the inventory balance is given below:

2021 Base year cost is

=  $131,040 ÷ 1.05

= $124,800

Additional layer is

= $124,800 - $101,600

= $23,200

2022 Base year cost is

= $150,040 ÷ 1.10

= $136,400

Additional layer is

= ($136,400 - $124,800 ) × 1.10

= $11,600  1.10

= $12,760

Therefore the first option is correct

3 0
3 years ago
Which career is best suited for people who have a high school diploma?
yuradex [85]

Answer:a

Explanation:

4 0
3 years ago
Read 2 more answers
Unlike tangible goods,virtually all services are susceptible to inconsistency and variations in quality.Why is this so?A) Becaus
expeople1 [14]

Answer:

A) Because services depend on people for their delivery.

Explanation:

Given that the same or similar type of services are or can be carried out by various personnel, and the level of quality of the rendered services is dependent on the skills and professionalism of the person who rendered such services.

Hence, Unlike tangible goods, virtually all services are susceptible to inconsistency and variations in quality, because services depend on people for their delivery.

Therefore, the right answer is Option A. the

8 0
3 years ago
What is the meaning or moral standard?
erik [133]

Answer:

A moral standard refers to the norms which we have about the types of actions which we believe to be morally acceptable and morally unacceptable. Specifically, moral standards deal with matters which can either seriously harm or seriously benefit human beings.

Explanation:

may this answer is helpful for you

6 0
2 years ago
Other questions:
  • Johanna's grandmother gives her $8,000 to pay for the entire first year's tuition at a state college, a year from now. johanna p
    8·1 answer
  • The Eagle Pawn Company is a regional business that owns seven pawn stores in the Houston area. The owners of Eagle Pawn have rec
    14·1 answer
  • Strategic business units that have a relatively low market share but have the potential to grow are best categorized under _____
    7·1 answer
  • LO 4.7In a job order cost system, factory wage expense is debited to which account?
    5·1 answer
  • Real consequences—rewards and punishments that arise from using a tactic or not using it—should not only motivate a negotiator's
    10·1 answer
  • Before 1993, the U.S. Forest Service sold timber-cutting rights:
    6·1 answer
  • The economy is in long-run equilibrium. Technological change shifts the long-run aggregate supply curve $120 billion to the righ
    13·1 answer
  • At the end of the current year (before adjusting entries), Autumn Corporation had a balance of $76,000 in Accounts Receivable an
    15·1 answer
  • An advantage of an enterprise resource planning (ERP) system is that to implement it, an organization need not attempt to do eve
    14·1 answer
  • 2. Max z = 3X1 + 5X2+ 4X3 S.t.2X1 +3X2 ≤ 18 2X1 + X2 ≤ 10 3X1 + 2X+4X3 ≤ 15 X1, X2, X3 ≥ 0
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!