Answer:
(a) 13,3%
(b) 18,1%
Explanation:
To calculate the required rate of return for an assets it's necessary to use the CAPM (Capital Asset Pricing Model) model which considers these variables to estimate the required return of an assets, the model states the next:
ER = Rf + Bix( ERm - Rf )
ER : Expected Return of Investment
Rf : Risk-Free Rate
Bi : Beta of the Investment
ERm : Expected Return of the Market
(Erm-Rf) : Market Risk Premium
It tries to explain the relationship between the systematic risk ((Erm-Rf Market Risk Premium) of the market and the expected returns for assets.
Answer:
New media marketing centers on promoting brands and selling products and services through established and emerging online channels, harnessing these elements of new media to engage potential and current customers.
Explanation:
Answer:
10.5%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
where,
Risk free rate of return = 7%
Market rate of return = 14%
And, the beta is 0.5
So the expected return is
= 7% + 0.5 × (14% - 7%)
= 7% + 0.5 × 7%
= 7% + 3.5%
= 10.5%
Answer:
$300,000
Explanation:
Data provided in the question:
Amount the painter would like to spend on a respirator = $30
Chances of paint fume killing the painter = 0.01%
Now,
The cash value he places on the life of painter
= [ Amount spent on respirator ] ÷ [ Probability of death ]
or
= 30 ÷ 0.01%
or
= 30 ÷ 0.0001
or
= $300,000
