Answer: (D) More will be able to pay for that product
Explanation:
Answer:
9.98%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity. It is a long term return which is expressed in annual term.
As per given data
Annual Payment = $500
Current price = $5,012
$500 payment each year for indefinite period of time is a perpetuity, value of perpetuity can be calculated as follow
Current Price = Annual Payment / Yield to maturity
Yield to maturity = Annual Payment / Current Price
Yield to maturity = ( Annual payment / Current price ) x 100
Yield to maturity = ( $500 / $5,012 ) x 100
Yield to maturity = 0.0998 x 100
Yield to maturity = 9.98%
Answer:
Expected market return is 13%
Explanation:
CAPM is used to calculate the expected return on an asset for decision making to add any further asset to a well diversified portfolio. It involves different factors like market risk premium, asset beta and risk free rate as well to calculate a return rate which is expected to obtain from underline asset or investment.
As per given data
Expected return = 17.2%
Stock beta = 1.6
Risk free rate = 6%
According to CAPM
Expected Return on security = Risk free rate + Stock beta ( Market Risk Premium )
17.2% = 6% + 1.6 × ( Market Risk Premium )
17.2% = 6% + 1.6 × ( Market return - Risk free rate )
17.2% = 6% + 1.6 × ( Market return - 6% )
17.2% - 6% = 1.6 × ( Market return - 6% )
11.2% = 1.6 × ( Market return - 6% )
11.2% / 1.6 = Market return - 6%
7% = Market return - 6%
7% + 6% = Market return
Market return = 13%
Answer:
Percentage of total return on Investment = <em>ROI = 17% </em>
Explanation:
Let’s
ROI = Return on Investment = ?
D = Dividends = $15
CGD = Capital Gain Distributions = $35
CGS = Capital Gain on Sale = $120
SP = Shares Purchased = 100
CS = Cost per share = $10.00
ROI = (D + CGD + CGS) / (SP * CS)
ROI = ($15 + $35 + $120) / (100 * $10.00)
ROI = 170 / 1,000
ROI = 0.17
Percentage: 0.170 x 100%
<em>ROI = 17% </em>
Answer:
brainllest if right
This means that they are very superior or in a higher rank than others.
Explanation: