Answer:
Detailed solution is given below:
The form of business organization that comprises about 18 percent of all businesses in the United States is the a. joint venture
. b. syndicate. c. sole proprietorship. d. partnership. e. corporation.
1 answer:
Answer:
The form of business organization in the United States which comprises about 18% are corporations.
Explanation:
According to the data presented in the attached figure it is clearly seen that the percentage of corporations in the United States is 18%. The percentage of Joint Ventures and Syndicates is a lot less while that of partnerships and sole proprietorships is higher.
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Answer:
<u>13.2%</u>
Explanation:
As per Capital Asset Pricing Model (CAPM),
Expected Rate Of Return =
wherein, = Risk free rate of return on treasury bonds
B= Beta , which represents the degree of sensitivity of security return to the market return.
= Return on market portfolio
Thus, Expected rate of return of security X = 6 + 1.2(12 - 6)
= 13.2%
CAPM model is used for calculating expected rate of return. As per the model, the investors expect a risk premium represented by excess of rate of return of market portfolio over risk free rate , in addition for the risk free rate of return.
The risk premium serves as a compensation for investing in risky securities instead of risk free securities.