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Alexandra [31]
4 years ago
13

The neurobiological approach explains human behavior by focusing on ?

Advanced Placement (AP)
1 answer:
bulgar [2K]4 years ago
6 0
Neurobiological functions, structures, activity, and biological needs and functions
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Stock Y has a beta of 1.0 and an expected return of 12.4 percent. Stock Z has a beta of .6 and an expected return of 8.2 percent
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Answer: 1.9%

Explanation:

First derive the Market return as this is needed in the Capital Asset Pricing Model by using the same model:

Required return = Risk free rate + Beta * ( market return - Risk free rate)

Using stock Y:

12.4% = Risk free rate + 1 * (market return - Risk free rate)

12.4% = Rf + market return - Rf

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Use this to calculate the Risk free rate:

Stock Z:

8.2% = Rf + 0.6 * (12.4% - Rf)

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= 1.9%

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