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
Paula weeded 40% of her garden in 8 minutes. How many minutes will it take to weed all of her garden at this rate ?
Digiron [165]

Answer:

3.2

Explanation:

when we get the 8 minutes and multiply

the rate which is 40% we get 3.2. 8*40/100=3.2 minutes.

3 0
2 years ago
1. Identify the factors that impact the social responsibility policies implemented by businesses.
andreyandreev [35.5K]

Answer:

Number one is the answer

Explanation:

7 0
3 years ago
How much money was spent on black friday this year?
Tatiana [17]

Answer:

a lot of money was spent this year

5 0
2 years ago
Necesito un susario de la uanl de aspirante con admisión rechazada
max2010maxim [7]

Answer:

ta bueno pue

Explanation:

6 0
3 years ago
This is the thing an organization does best—something that draws customers to the company, is difficult to imitate, and opens up
jasenka [17]
The description above describes the term CORE COMPETENCE. Core competence is one of the terms in the management theory. This emphasizes the combined resources and skills in order to fulfill once goal and to open up and access potential markets.
4 0
3 years ago
Other questions:
  • There are eight parts of the planning phase of an audit. which parts involve the evaluation of​ risk? ​
    9·1 answer
  • Hilary was put on a new team by her manager. Ever since she shifted teams, Hilary has felt energized and motivated toward higher
    6·1 answer
  • Millstone Company produces only one product. Normal capacity is 20,000 units per year, and the unit sales price is $5. Relevant
    15·1 answer
  • The board of commissioners of the city of Jarmaine adopted a General fund budget for the year ending June 30, 2018, which indica
    13·1 answer
  • Just before the Persian Gulf War, suppliers of gasoline held back the supply of gasoline they were willing to sell. This action
    10·1 answer
  • Your friend Marco loves being on his phone and interacting on social media. He knows that you are studying different careers and
    12·1 answer
  • A 10,000 par value bond with coupons at 8%, convertible semiannually, is being sold three years and four months before the bond
    13·1 answer
  • In your opinion, do we need to use a structured decision making model to make decisions in business.
    10·1 answer
  • Why is competition limited in an oligopoly
    8·1 answer
  • Your portfolio has grown from $2500 to $3800 what is the percent of the growth rate
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!