If Emma decides to buy a new labtop for school ,which of the following is most likely to be her opportunity cost?

Robert invested in stock and received a positive return over a 9-month period. Which of the following types of returns will be g

Anton [14]

Options:

A) Holding period return (HPR)

B) Effective annual return

C) Annual percentage rate

D) There is not enough information to make a definitive choice.

Answer:

Option B is correct.

Effective annual return

Explanation:

Robert invested in stock and received a positive return over a 9-month period then the effective annual return will be the greatest.

3 0

3 years ago

100 points

Dovator [93]

Electronic communications tend to be more casual

6 0

3 years ago

Read 2 more answers

Home Services common stock offers an expected total return of 14.56 percent. The last annual dividend was $2.27 a share. Dividen

prohojiy [21]

Answer:

Dividend yield=10.3%

Explanation:

Mv=Do(1+g)/(Ke-g)

MV=?

Do=2.27

g=2.1%

Ke=14.56%

Mv=2.27(1+2.1%)/(14.56%-2.1%)

MV=2.75/(12.46%)

MV=$22.1

Dividend yield=dividend per share/share price per share

Dividend yield=2.27/22.1

Dividend yield=10.3%

5 0

3 years ago

The following cost data for the month of May were taken from the records of the Terrence Manufacturing Company: (CIA adapted) De

vlada-n [284]

Answer:

Total Manufacturing Cost $81,100

Explanation:

The computation of the manufacturing cost incurred is shown below:

Wages of Production workers: = $30,500

Raw Material $42,000

Material handling $2,700

Factory rent $3,200

Factory Insurance $500

Depreciation on Factory Equipment $2,200

Total Manufacturing Cost $81,100

We simply added the above items

5 0

3 years ago

Two investment advisers are comparing performance. One averaged a 19% return and the other a 16% return. However, the beta for t

finlep [7]

Answer: Adviser B is the superior stock selector.

Explanation:

For the comparision between the two investment advisers, the Jenson's Alpha will be utilized.

Jenson's Alpha:

= Portfolio Actual Return - CAPM(Benchmark Portfolio Return)

T Bill Rate(Risk free rate) = 6%

Market return(E(Em) = 14%

Beta of Investment Adviser A = 1.5

Beta of Investment Adviser B = 1

For Adviser A:

CAPM = Risk free return + Beta ( E(Rm) - Risk free return)

CAPM(Benchmark Portfolio) = 6 + 1.5 (14-6)

= 6 + 12

= 18%

Actual Return = 19%

Jenson's Alpha = 19% - 18% = 1%

For Adviser B:

CAPM = Risk free return + Beta ( E(Rm) - Risk free return)

CAPM(Benchmark Portfolio) = 6 + 1(14-6) = 6 + 1(8) = 14%

Actual Return = 16%

Jenson's Alpha = 16% - 14% = 2%

Adviser B is a better selector because he has a larger alpha of 2% compared to Adviser A who has 1%.

T Bill Rate(Risk free rate) = 3%

Market return(E(Rm) = 15%

Beta of Investment Adviser A = 1.5

Beta of Investment Adviser B = 1

For Adviser A:

CAPM = Risk free return + Beta ( E(Rm) - Risk free return)

CAPM(Benchmark Portfolio) = 3 + 1.5 (15-3)

= 3 + 18

= 21%

Actual Return = 19%

Jenson's Alpha = 19% - 21% = -2%

For Adviser B:

CAPM = Risk free return + Beta ( E(Rm) - Risk free return)

CAPM(Benchmark Portfolio) = 3 + 1(15-3) = 3 + 1(12) = 15%

Actual Return = 16%

Jenson's Alpha = 16% - 15% = 1%

Given the changes, Adviser B is still the better selector because he has a larger alpha of 1% compared to Adviser A who has -2%.

7 0

3 years ago