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2 years ago

8

A company is 40% financed by risk-free debt. the interest rate is 10%, the expected market risk premium is 8%, and the beta of t

he company’s common stock is .5.

1 answer:

Evgen [1.6K]2 years ago

6 0

What is the question? i need more details to helpp you properly

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Listen to marisol and alicia's conversation and select who mentions each clothing item.

postnew [5]

Answer:

The correct answers are:

Pantalones:

Marison

Blusa :

Both

Abrigo:

Neither

Falda :

Alicia

Sandalias:

Neither

Zapatos :

Alicia

5 0

3 years ago

The federal funds rate is the interest rate that banks charge one another for short-term (typically overnight) loans. When the F

WARRIOR [948]

Answer: decreases

Explanation: The following practice is done by the central bank in the situation of inflation when there is an excess supply of money in the economy.

The central bank tries to decrease the funds by selling the govt bonds to the banks. This results in decrease in funds from banks as they have to buy such bonds from their respective funds.

6 0

2 years ago

40 points fast easy question. ………….

Naddik [55]

It’s depends which artical your reading since you have to re read the book to answer.

3 0

1 year ago

You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e

kodGreya [7K]

Answer:

$42.60

Explanation:

Current value = Future dividends and value*Present value of discounting factor(rate%,time period)

Current value = $1.85 / (1+10%) + $45 / (1+10%)

Current value = $1.85/1.1 + 45/1.1

Current value = $ 1.68181 + $40.91

Current value = $42.5918

Current value = $42.60

3 0

2 years ago

You are creating a portfolio of two stocks. The first one has a standard deviation of 20% and the second one has a standard devi

Drupady [299]

Answer:

23.56

Explanation:

Standard deviation of the first stock (σ1) = 20%

Standard deviation of the second stock (σ2) = 37%

The correlation coefficient between the returns (ρ) = 0.1.

Proportion invested in the first stock (W1) = 43%

Proportion invested in the second stock (W2) = 57%

The standard deviation of a two-stock portfolio's returns is given by

$\sigma_{portfolio} = \sqrt{w_1^2\sigma_1^2+w_2^2\sigma_2^2+2w_1w_2\rho\sigma_1\sigma_2} \\\sigma_{portfolio} = \sqrt{0.43^2*0.2^2+0.57^2*0.37^2+2*0.43*0.57*0.1*0.2*0.37}\\\sigma_{portfolio} =0.2356=23.56\%$

The standard deviation of this portfolio's returns IS 23.56%

8 0

3 years ago