D. Square your shoulders before entering the room.
Answer:
(a) 12.75%
Explanation:
Given that,
Beta = 1.5
Risk-free rate = 4.5 percent
Expected return on market portfolio = 10 percent
Here, we are using CAPM:
(a) Expected rate of return for Acer common stock:
= Risk free rate + beta (Expected return on market Portfolio - Risk free rate)
= 4.5% + [1.5 (10% - 4.5%)]
= 0.045 + (1.5 × 0.055)
= 0.045 + 0.0825
= 0.1275 or 12.75%
(b) This rate is known as the fair rate which compensates the holder or investor for assuming the risk associated with it and for the time value of money.
<span>This is part of the concept of involvement. Being involved in the hunting sport makes sure that people are responsible for their actions in the future, makes people aware of the needs and requirements of those who do undertake the activity, and gives people the information they'll need in order to be successful at the activity.</span>
