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guajiro [1.7K]
3 years ago
15

A stock with a beta of 0.8 has an expected rate of return of 12%. If the market return this year turns out to be 5 percentage po

ints below expectations, what is your best guess as to the rate of return on the stock?
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
8 0

Answer:

The correct answer is:  The expected rate of return for the stock would be around 7%.

Explanation:

The Beta coefficient is a numeral measure that portraits the volatility of a stock compared to the overall market performance. If a stock's beta is closed to the numerical value one (1) it implies it is highly correlated to the price movement of the overall market.

In that case, if a stock's beta is 0.8 it implies it follows the market price movements. If the stock expected rate return is 12% but the market return turns out to be 5% points below expectations, it means the stock's return would end up being around 7%.

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Dahasolnce [82]

I believe the answer is:  has a higher proportion of college graduates than most European countries.

On average, only 55% of College students in west virginia managed to graduate and use their degree each year. That's being said, the number is still significantly higher to most european countries since only about 40% of their students manage to graduate each year.

5 0
3 years ago
All of the following will cause a decline in a company’s gross profit EXCEPT A : clearance of discontinued inventory. B : sellin
VARVARA [1.3K]

Answer:

c. paying lower prices to its suppliers.

Explanation:

A : clearance of discontinued inventory.  

Clearance is most often used when a shop wants to clear a particular stock line. reduce sell price with effect in gross margin

B : selling products with a lower markup.

Markups are the ratio of gross profit to sales price.

D : increased competition resulting in a lower selling price.

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3 0
3 years ago
Sal is very clear in defining for his subordinates the incentives available to them for different levels of performance. He make
sergejj [24]

Answer: d. path–goal

Explanation:

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It is then divided into four styles with the relevant style here being the "directive path-goal clarifying leader behavior". Under this style, the manager specifies exactly what it is that they want from the employees and then rewards them when they meet the required objectives.

7 0
2 years ago
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shepuryov [24]

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8 0
3 years ago
Read 2 more answers
The market for chewing gum is in equilibrium with a current price of 50 cents per pack and a quantity of 100,000 packs per day.
frez [133]

Answer:

A) an increase in the price of other kinds of candy

Explanation:

If the price of substitute products (other types of candy) increases, then the suppliers of chewing gum can increase their price without the quantity demanded decreasing. If the decrease in the price of chewing gum is smaller than the increase in the price of substitute products, the quantity demanded will increase.

If there was a price increase of the main ingredients used to produce chewing gum, then the supply curve would shift to the left (option B is wrong).

If the workers signed an agreement that lowered their wages, then the supply curve would shift to the right (option C is wrong).

A decrease in the number of young people in the market would decrease the quantity demanded for chewing gum, which in turn would decrease the equilibrium price (option D is wrong).

A decrease in income would also decrease the quantity demanded, which would in turn decrease the equilibrium price (option E is wrong).

5 0
3 years ago
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