Answer:
9.42%
Explanation:
According to the CAPM,
market required rate of return = risk free rate + (beta x market risk premium)
for stock A :
3.7% + (0.65 X 8.8%) = 9.42%
The market required rate of return isn't equal to the expected return based on the calculation.
for stock B :
3.7% + (1.22 X 8.8%) = 14.44%
for stock B, they both match
Answer:
15.26%
Explanation:
Given:
Expected return = 15.1% = 0.151
Expected loss in recession = - 8% = - 0.08 [negative sign depicts loss]
Expected earning in a boom = 18% = 0.18
Probabilities of a recession = 2% = 0.02
Probabilities of a normal economy = 87% = 0.87
Probabilities of a boom = 11% = 0.11
Now,
Expected return = ∑ (Probability × Return)
or
0.151 = 0.02 × ( - 0.08) + 0.11 × 0.18 + 0.87 × Return on normal economy
or
0.151 = - 0.0016 + 0.0198 + 0.87 × Return on normal economy
or
0.151 - 0.0182 = 0.87 × Return on normal economy
or
Return on normal economy = 0.1526
or
= 0.1526 × 100%
= 15.26%
Answer:
$2,666
Explanation:
Given that:
- Current ask price: $4.30
- Bid quotes $4.27
- Market buy order: 620 shares
So, the cost to buy these shares:
Number market buy order * Current ask price/share
= 620*$4.30
= $2,666
Hope it will find you well.
Answer: The correct answer is "a) structural functionalist".
Explanation: Evan's perspective on stratification is most in line with theory of structural functionalist, because this theory establishes that inequalities are functional for society, and argues that the most difficult jobs in any society have the highest incomes, in order to motivate people to fill the necessary roles for the division of labor. Therefore inequality serves social stability.
