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IceJOKER [234]
3 years ago
6

مطلوب

Business
1 answer:
love history [14]3 years ago
5 0

Answer:

Personal consumption spending  = $387 billion

Explanation:

Given:

Personal saving = -$17 billion

Personal income = $370 billion

Find:

Personal consumption spending

Computation:

Personal consumption spending  = Personal income - (Personal saving)

Personal consumption spending  = $370 billion - (-$17 billion)

Personal consumption spending  = $387 billion

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A stock has an expected return of 11 percent, its beta is 1.20, and the risk-free rate is 4.4 percent. What must the expected re
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Answer:

Expected market return = 9.8%

Explanation:

The expected return on the market can be worked out using the Capital Asset Pricing Model.

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>

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Collect like terms

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