1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mestny [16]
3 years ago
9

According to the capital asset pricing model, the expected return on a security is: Group of answer choices positively and linea

rly related to the security's variance. positively and non-linearly related to the security's variance. positively and linearly related to the security's beta. positively and non-linearly related to the security's beta.
Business
1 answer:
Delicious77 [7]3 years ago
5 0

Answer:

e. the expected return on a security is positively and linearly related to the security's beta.

Explanation:

As per CAPM: Expected return (ER) = Rf + \beta (Rm - Rf)

Lets assume risk free return (Rf) as 5%, \beta as 2 and expected market return (Rm) as 10%

then, ER = 5% + 2 (10% - 5%) = 15%

However if lets assume all the other factors remain the same and \beta increases to 3

then, ER = 5% + 3 (10% - 5%) = 20%

Similarly if \beta reduces to 1

then, ER = 5% + 1 (10% - 5%) = 10%

So higher the \beta higher is the risk and hence higher the expected return. Hence expected return on a security is positvely and linearly related to the security's beta

You might be interested in
A. she was born on august? 4, 1950, and lived at 37 gesner street until she was sixteen.
Korolek [52]
??? C ???

whats the question here
4 0
3 years ago
A firm practicing third-degree price discrimination may:
nata0808 [166]

Answer:

(B) I and II 

Explanation:

Price discrimination is when a producer charges different prices for his good or service.

Third degree price discrimination is when consumers are charged different prices for the same good due to certain factors. E.g. age, gender, location.

Second degree price discrimination is when consumers who buy in bulk are given discounts.

First price discrimination is when consumers are charged different prices according to their willingness to pay. Example of first price discrimination is initially charging high prices and then reducing the price over time to sell to the more price-sensitive consumers. 

I hope my answer helps you.

6 0
3 years ago
Individuals and countries specialize because the opportunity cost of producing goods and services: Multiple choice question.
Darina [25.2K]

Individuals, corporations, and economies specialize because the opportunity cost of producing goods and services differs from country to country, business to business, and individual to individual.

Persons, Corporations, and Economies are bound to specialize in the production of goods and or services in which they hold a stronger comparative advantage than their competition.

<h3>What is comparative advantage?</h3>

This is defined as the ability of an individual, corporate entity, or national to perform an economic activity more efficiently or at a lower (opportunity cost) than the other.

Examples of economic activities are:

  • Resource management
  • production of services and goods
  • distribution of services and goods
  • consumption of services and goods

See the link below to learn more:

brainly.com/question/7045530

4 0
2 years ago
The value of the surplus that is lost to buyers and sellers but converted into tax revenue may?
frozen [14]

The amount of the surplus that is worthless to buyers and sellers but becomes tax income may be transferred to someone else through public policies, but it is not lost.

More about public policies:

The majority of the time, a government's established policies, laws, and behaviours make up its public policy. Concern over the new structure of government calls attention to how frequently state agencies now carry out these functions rather than the state itself.

By endorsing politicians and political parties, several individuals and organisations attempt to have an impact on public policy through the political process.

Learn more about public policy here:

brainly.com/question/24262123

#SPJ4

8 0
1 year ago
To compare two programs for training industrial workers to perform la skilled job, 10 workers are included in an experiment. All
Alex17521 [72]

If we compare the p value and the significance level assumed  we see that  so we can conclude that we have enough evidence to reject the null hypothesis, and we can conclude the the true mean for method 1 is lower than the mean for the method 2 at 5% of significance.

<h3>Data given and notation</h3>

We can calculate the sample mean and deviation with these formulas:

represent the mean for the sample mean for 1

represent the mean for the sample mean for 2

represent the sample standard deviation for the sample 1

represent the sample standard deviation for the sample 2

sample size selected 1

sample size selected 2

represent the significance level for the hypothesis test.

t would represent the statistic (variable of interest)

represent the p value for the test (variable of interest)

State the null and alternative hypotheses.

We need to conduct a hypothesis in order to check if the average time taken when training under method 1 is less than the average time for Method 2, the system of hypothesis would be:

<h3>Null hypothesis:</h3>

Alternative hypothesis:

If we analyze the size for the samples both are less than 30 so for this case is better apply a t test to compare means, and the statistic is given by:

(1)

t-test: "Is used to compare group means. Is one of the most common tests and is used to determine whether the means of two groups are equal to each other".

Calculate the statistic

We can replace in formula (1) the info given like this:

 P-value

The first step is calculate the degrees of freedom, on this case:

Since is a one sided test the p value would be:

To learn more about  null hypothesis visit the link

brainly.com/question/16261813

#SPJ4

5 0
1 year ago
Other questions:
  • The great disparity in economic prosperity between north and south korea can best be explained by the​ _____________.
    8·1 answer
  • When the interest rate increases, the opportunity cost of holding money Select one: a. decreases, so the quantity of money deman
    15·2 answers
  • A senator wants to raise tax revenue and make workers better off. A staff memberproposes raising the payroll tax paid by firms a
    14·2 answers
  • While Melissa was working at the factory, a heavy machine fell on her and broke her legs. Her doctors say that she needs three m
    13·2 answers
  • Many Americans are selling their used cars and buying new​ fuel-efficient hybrids. Other things remaining the​ same, in the mark
    5·1 answer
  • Ethan's Eggroll House, a calendar year corporation, purchased a new computer and printer in January for $1,500. In February, the
    9·1 answer
  • Bonds that may be exchanged for common stock at the option of the bondholders are called
    5·1 answer
  • business ethics chapter 4 critics have argued that, from an ethical perspective, altruistic corporate social responsibility (CSR
    9·1 answer
  • Link Company uses a process cost system and the weighted average method. During the year the company completed 1,300 units of pr
    15·1 answer
  • What happens when supply exceeds demand?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!