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12345 [234]
3 years ago
12

The risk-free rate is 4%, the market risk premium is 8%, and the market return is 12%. Stock Y's beta is 1.85 and the standard d

eviation of its returns is 60%. What should be the stock's expected rate of return to make the investor indifferent toward buying or selling the stock?
Business
1 answer:
Snowcat [4.5K]3 years ago
6 0

Answer:

18.80%

Explanation:

Data given

Risk free rate = 4%

Beta = 1.85

Market return = 12%

The computation of rate of return is shown below:-

Using CAPM

Rate of Return = Risk free rate + Beta × (Market return- Risk free rate)

= 4% + 1.85 × (12% - 4%)

= 4% + 1.85 × 8%

= 4% + 14.8%

= 18.80%

Therefore for computing the rate of return we simply applied the above formula.

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The Chinese political environment is very:
VikaD [51]

Answer:

Strict about it's people and not a lot of people own cars. I thinks that's China or that's North Korea. In not sure

3 0
3 years ago
Look around your room or in your house and find five different objects and identify where they were made. In at least 100 words,
gizmo_the_mogwai [7]

Answer:

Throughout my home, there are many objects that were made in many different places. These objects, though they may seem pedestrian, are highly significant in their ability to help and serve. One of these objects includes my television. This trade occurred at Best Buy, where I gave $5,000 U.S dollars in turn for a continuous flow of information. I have since been positively impacted, as I am always aware of my surroundings (I.e. news) and I can keep up with the latest shows. Another example is my refrigerator. My refrigerator allows me to, once again, connect to the internet and keep in touch with those around me. This product has also impacted me, as it makes life much easier. When at the grocery, I am able to search on my phone and look inside to see what I may, or may not, need.

Explanation:

4 0
2 years ago
If a supply chain manager can reduce inventory while keeping the flow rate constant, what does little's law predict will happen
ozzi

If a supply chain manager can reduce inventory while keeping the flow rate constant, little's law predicts flow time will go down.

Little's Law is a theorem that calculates the average number of items in a stationary queuing system based on an item's average waiting time and the average number of items arriving at the system per unit of time.

The law establishes a straightforward and obvious method for evaluating the efficiency of queuing systems.

The notion is extremely important for business operations since it states that the number of items in the queuing system is determined primarily by two essential variables and is unaffected by other factors such as service distribution or service order.

Hence, the answer is that the flow time will go down.

Learn more about supply chain:

brainly.com/question/25160870

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7 0
2 years ago
The president of Global Wholesalers would like to offer special sale prices to the firm's best customers under the following ter
Aleksandr-060686 [28]

Answer:

Correct Answer:

1. The prices will apply only to units purchased in excess of the quantity normally purchased by a customer.

Explanation:

This is because, the excess of the product purchased by the customer would be deemed eligible for special sales price. For example, Customer A use to purchase product B, 400 pieces each month.

<em>In the month the sales prices started, he purchased 900 pieces of same product. Then, the special sales price would apply to 500 pieces of the product which was extra quantity he bought aside his regular quantity.</em>

5 0
3 years ago
A production center is available for 8 hours a day in a factory. It is comprised of several rotary parts, and the worker operati
den301095 [7]

Answer:

Total time: 8 Hours

Lubrication Requirement: Each day

Time Required for removing, Lubrication. reassembling= 2 Hours

So Availability of Production Center= 8 hours - 2 hours

Availability of Production Center = 6 Hours.

Explanation:

Production center will not be available for production in the time when rotary parts will be engaged in lubrication process. The rotary parts lubrication will take 2 hours each day.

So center will be available for production for 6 hours only.

5 0
3 years ago
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