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Sergio039 [100]
2 years ago
12

You are offered two stocks. The beta of A is 1.4 while the beta of B is 0.8. The growth rates of earnings and dividends are 10%

and 5%, respectively. The dividend yields are 5% and 7%, respectively.
Since A offers higher potential growth, should it be purchased?
Investments- Individual Work 2 Page 3
Since B offers a higher dividend yield, should it be purchased?
If the risk-free rate of return were 7% and the return on the market is expected to be 14%, which of these stocks should be bought?
Mathematics
1 answer:
Vsevolod [243]2 years ago
8 0

Answer:

a) Yes , Cause The Expected Returns of stock A is Higher than that of B

b) No,  Cause The Expected Returns of stock B is Lower than that of A

Step-by-step explanation:

From the question we are told that:

Beta A \beta A=1.4

Beta B \beta B=0.8

Stock 1 Growth rates of earnings and dividends G_1=10\%

Stock 2 Growth rates of earnings and dividends  G_2=5\%

Stock 1  Dividend yields D_1=5\%

Stock 2 Dividend yields  D_2=7\%

Generally the equation for Expected Returns is mathematically given by

Expected Returns =Growth rates+Dividend yields

For Stock 1

Expected\ Returns =G_1+D_1

Expected\ Returns =5%+10%

Expected\ Returns =15%

For Stock 2

Expected\ Returns =G_2+D_2

Expected\ Returns =7%+5%

Expected\ Returns =12%

Therefore

a) Yes , Cause The Expected Returns of stock A is Higher than that of B

b) No,  Cause The Expected Returns of stock B is Lower than that of A

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Franklin rolls a pair of six-sided fair dice with sides numbered 1 through 6.
Zarrin [17]

Answer:

The answer is 7/36.

Step-by-step explanation:

First, you find out how many possible outcomes there are from rolling a pair of dice. On one cube, you can roll a 1,2,3,4,5, or 6; so there are 6 outcomes. Since there are two cubes, you multiply 6 by itself to get a total of 36 possible outcomes. Next, you find the probability of the sum of the numbers rolled being an even number; the possibilities are 2,4,6,8,10, or 12, which is 6/36. The probability of rolling a multiple of 5; the one possibility is just 5, since we already accounted for rolling a 10 as an even number. So that is 1/36. The word <u>or</u> says that we add the two probabilities, so the final answer is 6/36+1/36=7/36.

6 0
3 years ago
2x + y =8 and 4x -2y = 6
irakobra [83]

Answer:

x=1.25 and y=-5.5

Step-by-step explanation:

2x+y=-8, 2x=-y-8 or 4x=-2y-16. Plug this value in the second equation, we have - 2y-16-2y=6, y=-5.5. Plugging this in any equation we have, x=1.25

5 0
3 years ago
I need help with math ...x+180+1.5x+3x=455
kirill115 [55]
5.5x+180=455
5.5x=275
The answer is X=50
8 0
3 years ago
Given that f(x)=x^2-4x -3 and g(x)=x+3/4 solve for f(g(x)) when x=9
SSSSS [86.1K]

Answer:

f(g(9)) = 945/16

Step-by-step explanation:

To find f(g(x)), you have to substitute g(x) wherever there is an x in f(x).

g(x) = x + 3/4

f(x) = x² - 4x - 3

f(g(x)) = (x + 3/4)² - 4(x + 3/4) - 3

f(g(x)) = x² + 3/2x + 9/16 - 4x + 3 - 3

f(g(x)) = x² - 5/2x + 9/16 + 3 - 3

f(g(x)) = x² - 5/2x + 9/16

Now, put a 9 wherever there is an x in f(g(x)).

f(g(9)) = (9)² - 5/2(9) + 9/16

f(g(9)) = 81 - 5/2(9) + 9/16

f(g(9)) = 81 - 45/2 + 9/16

f(g(9)) = 117/2 + 9/16

f(g(9)) = 945/16

7 0
3 years ago
Find the least number must be added to 4015 to make it a perfect square. also,find the square root of the perfect square so obta
Vladimir [108]

To solve this, I used guess and check.

I started by finding 60²=3600 and 70²=4900. 70² is too much, so I then did 65²=4,225.

After 65², I did 62²=3,844. I knew that was pretty close, so I did 64. 64²=4,096 and 63²=3,969. So, 64² was it.

4,096-4015=81

So, you would need to add 81 to 4015 in order to receive a perfect square, which is 64²(4,096).

7 0
3 years ago
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