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vovikov84 [41]
3 years ago
8

An analyst estimates the index model for a stock using regression analysis involving total returns, not the excess return. The e

stimated intercept in the regression equation is 6% and the β is 0.5. The risk-free rate of return is 12%. The true β of the stock is
Business
2 answers:
Angelina_Jolie [31]3 years ago
7 0

Answer:

The true β of the stock is 0%

Explanation:

6% = a + 12% (1 − 0.5); a = 0%.

insens350 [35]3 years ago
6 0

Answer:

The true β of the stock is 0

Explanation:

The regression equation for the stock would be given as,

y = βo + β1X1

The information given to us in the question is:

y = 6%

βo = 12%

X1 = (1 - 0.5)

Putting the information in the equation,

6% = a + 12% (1 - 0.5);

6% = a + 6%

a = 6% - 6%

a = 0

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Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours
marysya [2.9K]

Answer:

See below

Explanation:

1. Predetermined overhead rate

= Total fixed overhead cost for the year / Budgeted standard direct labor hour

Predetermined overhead rate = $530,400 / 68,000

Predetermined overhead rate

= $7.8 per direct labor hour

2. i. Fixed overhead budget variance

= Actual fixed overhead - Budgeted fixed overhead

= $521,000 - $530,400

= $9,400 favourable

ii Fixed overhead volume variance

= Budgeter fixed overhead - Fixed overhead applied to work in process

= $530,400 - (66,000 × $7.8)

= $530,000 - $514,800

= $15,200 unfavorable

3 0
3 years ago
Broker Barb takes out a two-page color full-page ad in the weekend paper of her listed properties. What form of advertisement is
romanna [79]

It is the form of product advertisement.

<h3>What is a product advertisement?</h3>
  • Product advertising promotes a specific product of a brand rather than the brand itself.
  • These advertising emphasize product characteristics and benefits rather than brand reputation or brand awareness.
  • Direct mail, comparative, cooperative, informational, and outdoor advertising are some kinds of product advertising.
  • Television, radio, print, websites, social media, outdoor/billboards, and digital placement are all examples of advertising channels.
  • Broker Barb advertises her listed homes in the weekend paper with a two-page color full-page ad, which is also a type of product advertising.

Therefore, in the given situation it is the form of product advertisement.

Know more about product advertisements here:

brainly.com/question/1658517

#SPJ4

7 0
2 years ago
Kyle burroughs left his car parked on the street all night. when he came out in the morning all four of his tires had been slash
TEA [102]
Based on the damages that Kyle's automobile acquired, the automobile insurance that would cover this damage would be a COMPREHENSIVE PHYSICAL DAMAGE. This kind of insurance is what protects your vehicle and since it is comprehensive, other damages including fire and theft could also be covered.
7 0
3 years ago
Melissa invests $37,000 today in a savings account that pays 4 percent interest compounded annually. She wants to know the total
yulyashka [42]

Answer:

c. N = 7, I/Y = 4, PV = 37,000

Explanation:

In financial Calculator the following key wii be pressed to calculate the the balance of the account (Future value)

For the number of year enter N = 7

Interest per year enter I/Y = 4

For present value enter PV = 37,000

This will calculate Malissa's account balance after 7 years which is $48,689.

So the correct answer is c. N = 7, I/Y = 4, PV = 37,000.

6 0
3 years ago
The international debt crisis of early 1982 was precipitated when _____ could notpay its international debts.A. RussiaB. MexicoC
saw5 [17]

Answer:

<u>B. Mexico</u>

Explanation:

Historically the international debt crisis of early 1982 was pushed forward or precipitated when Mexico could not pay its international debts.

This occurred when Mexico told the IMF ( International Monetary Fund) that it could not pay its international debt. A problem which later spread to other countries.  

6 0
3 years ago
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