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user100 [1]
4 years ago
12

Magellan is adding a project to the company portfolio and has the following​ information: the expected market return is 11.6​%,

the​ risk-free rate is 3.6​%, and the expected return on the new project is 15.4​%. What is the​ project's beta?
Business
1 answer:
fredd [130]4 years ago
6 0

Answer:

The beta of the new project is 1.475

Explanation:

The beta is the measure of systematic or market risk associated to a stock. The beta is used in the calculation of the required/expected rate of return under the CAPM model. The CAPM model uses the following formula to calculate the required/expected rate of return,

r = rRF + Beta * (rM - rRF)

Plugging in the available variables, we can calculate the value of the beta.

0.154 = 0.036 + Beta * (0.116 - 0.036)

0.154 - 0.036  =  Beta * 0.08

0.118 / 0.08 = Beta

Beta = 1.475

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Answer:

Dr Cash $825

Cr Sales Returns and Allowances $800

Cr Sales Discounts $25

Explanation:

Preparation of the journal entry that Concord Company make upon receipt of the check

Dr Cash $825

($800+$25)

Cr Sales Returns and Allowances $800

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5 0
3 years ago
Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers requi
dsp73

Answer:

Demand for plastic sprinklers for year 1 Year 2 Year 3 and Year 4 is 98 (33 + 14 + 51) , 111 , 133, 136.  

Explanation:

The Production line capacity requirement for the next four years will be equal to the demand for the next four years. The production line needs to meet the annual demand for the plastic sprinklers. The production line is extended and economies of scale is introduced with helps the company save additional cost of extension in the production line.

5 0
3 years ago
Under which market structure does the action of one firm have a spillover effect on the decisions of other firms?
irina [24]

I believe the answer is: Monopoly

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4 years ago
A nonprofit cooperative that accepts deposits, makes loans, and provides other financial services
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6 0
3 years ago
If the demand for a monopoly's output shifts rightward, the change in quantity produced is
ehidna [41]

Answer:

The correct answer is option D.

Explanation:

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Thus the change in quantity due to an increase in the demand for monopoly products cannot be predicted.

8 0
3 years ago
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