Answer:
B; it offers an expected excess return of 1.8%
Explanation:
Here are the options :
A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%
to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Stock A = 5% + 1.2(9% - 5%) = 9.8%
Stock B = 5% + 1.8(9% - 5%) = 12.20%
The next step is to determine the excess return
stated expected return - calculated expected return = excess return
Stock A's excess return = 10% - 9.8% - 0.2%
Stock B's excess return = 14 - 12.20 = 1.8%
Security B would be considered because it has a higher excess return
Answer:
both
Explanation:
there is not enough supply to fit the demand meaning said oil is more valuable so it is a good time to drill for more because it is more expensive and you know you can charge more because people will have no choice but to purchase it at your price until supply exceeds demand which will make it less valuable until the demand once again is higher than supply which will make it more valuable again.
Answer:
Net New Borrowing is 10,000
Explanation:
Cash available for capital spending = Operating cash flow - Interest Paid - Dividends Paid - Change in Net Working Capital + New Equity Issued
= 117,000 - 60,000 - 53,000 - 21,000 + 29,000
= 12,000
Net new borrowing = Net Capital Spending - Cash available for capital spending
= 22,000 - 12,000 = 10,000
Answer:
increase by less than $5
Explanation:
A tax is a compulsory amount levied by the government or an agency of the government on goods and services.
Taxes increases the price of a product.
If a $5 tax is levied on the tickets, the price of the ticket would increase by less than $5. The burden of the tax of $5 would be shared by both buyers and sellers. The party with the less elastic demand / supply would bear the greater burden of the tax.
I hope my answer helps you
Direct channel is typically used between a supplier and manufacturer of industrial products.
A supplier is a person, company, or entity that provides products or services to another entity. For example, a laptop manufacturer or a company that sells her PCBA to his OEM is an example of a supplier.
Supply In his chain, a provider or seller is a company that provides goods or services. Generally, supply chain providers manufacture inventory/stock items and sell them to the next link in the chain. Today, these terms refer to providers of goods or services.
In business, a supplier is a person or entity that sells quality services and goods at a reasonable cost from manufacturers to retailers or distributors.
Learn more about supplier here:brainly.com/question/26500183
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