Stine Co. is a retail store operating in a state with a 6% retail sales tax. The retailer may keep 2% of the sales tax collected
2 answers:
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Answer:
Following are the response to the given question:
Explanation:
For question 1:
The weighted average of each return is the expected return.
For question 2:
Standard deviation is a measured source of the square deviations from the mean via probability.
For question 3:
For point a:
For point b:
As per the CAPM:
In Option I:
When the beta of the stock exceeds 1.0, the change in the required rate of return must be higher than the increase in the premium of market risk. Beta is the degree to which stock return changes as market returns change.