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abruzzese [7]
3 years ago
6

Which three factors decrease because of protectionism?

Business
1 answer:
boyakko [2]3 years ago
5 0

Answer:

competition, goodwill with trade partners, and importation of goods

Explanation:

protectionism raises the cost of imported goods

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Themarketpriceofasecurityis$50.Itsexpectedrateofreturnis14%.Therisk-freerateis6%, and the market risk premium is 8.5%. What will
mezya [45]

Answer:

$31.82

Explanation:

market price $50

expected rate of return /Re) = 14%

Div = $50 x 14% = $7

risk free rate (Rf) = 6%

market premium (Rm - Rf) = 8.5%

beta = ?

14% = 6% + (beta x 8.5%)

beta x 8.5% = 14% - 6% = 8%

beta = 8% / 8.5 = 0.941

if beta doubles to 1.882, then Re will be:

Re = 6% + (1.882 x 8.5%) = 22%

new market price of the stocks = $7 / 22% = $31.818 = $31.82

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Answer from the person who asked the question.

4 0
3 years ago
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