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iVinArrow [24]
3 years ago
9

The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a. Calculate the required rate of retur

n on a security with a beta of 1.25.
Business
1 answer:
defon3 years ago
7 0

Answer:

The required rate of return is r = 0.1475 or 14.75%

Explanation:

The required rate of return is the minimum return that investors demand/expect on a stock based on the systematic risk of the stock as given by the beta. The expected or required rate of return on a stock can be calculated using the CAPM equation.

The equation is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on market

r = 0.06 + 1.25 * (0.13 - 0.06)

r = 0.1475 or 14.75%

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Covenant.

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A covenant in business context refers to a formal debt agreement between a lender and a company that specific actions will or will not be undertaken.

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Being promoted is likely to change your priorities because you will have _______. a. to begin dressing and acting much more form
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The correct option is b. new responsibilities to learn and people will expect much from you.

Getting promoted is most likely to cause you to reevaluate your priorities as you will have more obligations and higher expectations.

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The term "promotion" is used in a variety of settings; two of the most common ones are when talking to a career promotion and when discussing the marketing strategy of promoting a product.

Some key features of promotion are-

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4 0
1 year ago
Which one of the following items would you be most likely to keep in a database ?
ser-zykov [4K]
Payroll records would most likely to keep in a database. It keeps it more safer for the future use.
7 0
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On December 31, Strike Company has decided to discard one of its batting cages. The initial cost of the equipment was $208,831.0
borishaifa [10]

Answer: Equipment Cr. $208,831.00

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The Asset was purchased at a cost of $208,831.00 and this was reflected in the Equipment account.

When disposing of the Equipment therefore, the Equipment account has to be credited by a total amount corresponding to the same amount which is $208,831.00 to ensure that the asset will be removed from the Equipment account as it is no longer in the company.

5 0
3 years ago
A demand curve is built on the assumption that
Natali5045456 [20]

Answer: A demand curve is built on the assumption that only the demand and price of the good/service will change.

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6 0
3 years ago
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