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Sever21 [200]
3 years ago
5

Suppose the return on the market is expected to be 7%, a stock has a beta of 1.5, and T-bill rate is 3%. The SML would predict a

n expected return on the stocks of 9%. If you believe the stock will provide instead a return 11%. Its implied alpha is
Business
1 answer:
andrezito [222]3 years ago
3 0

Answer:

2%.

Explanation:

<u>Calculation of the alpha of the stock</u>

Implied Alpha Formula = Actual return - Expected return as per CAPM

Implied Alpha = 11% - 9%

Implied Alpha = 2%

Since you believe the stock will provide instead a return 11%, its implied alpha will be 2%.

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Carl's monthly take-home pay is $2000, and his monthly rent is $500. if both his monthly take-home pay and his rent increase by
sleet_krkn [62]
5% if I am correct please tell me if I am! Thank you!
4 0
4 years ago
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Technician a says that wheel concentricity problems may simulate a tire that is out of balance. technician b says that tire conc
AlekseyPX
<span>In order to assess who is correct the exact nature of the tire needs to be seen in more detail. If the tire has been damaged by driving, a crash or some other method, than Technician B would be correct because the tire would need to repaired. However, if tires is moving funny as a result of a bump or some other impact to it, then it could be that the weights have become mis-aligned and then Technician A would be correct in that re-balancing solves the problem.</span>
7 0
3 years ago
Activities included (and not included) in the calculation of GDP
iVinArrow [24]

Answer:

market value; goods

The gross domestic product (GDP) of the United States is defined as the _market value_ of all _final goods and services_ in a given period of time.

Explanation:

Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 27, 2015. Calculo imports the calculator into the United States on May 18, 2015.----- The GDP won't be affected by this mainly because it is imported.

Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2015. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2015. (Note: Focus exclusively on whether the production of the set of tires increases GDP directly, and ignore the effect of the production of the two-door coupe on GDP.)----- This would have an effect on the GDP because it is a finished domestic product.

An accountant starts a client's 2015 tax return on April 14, 2016, finishing it just before midnight on April 15, 2016.--- This is excluded, the 2015 gdp won't be affected by this.

Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 9, 2015. A family buys the sedan on December 24. ---It is included as it affects the GDP.

Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 14, 2015. It sells the latte to a customer immediately.----- It affects the 2015 gdp because it's a domestic product.

3 0
3 years ago
Fresh-Cola Inc. is a manufacturer of carbonated drinks that packages its products in bottles, cans, and 12-pack cartons. A stand
Sloan [31]

Answer:

Fresh cola is using packaging as a part of its product differentiation strategy

Explanation:

A product differentiation strategy may require adding new functional features or might be as simple as redesigning packaging. Therefore Fresh cola is using packaging as a part of its product differentiation strategy since it changed its previous features to a new one

4 0
3 years ago
System testing:
yarga [219]

Answer:

C) tests the functioning of the system as a whole.

Explanation:

System testing refers to a process in which a complete system is evaluated to make sure that it works properly and fulfills the requirements. According to this, the answer is that system testing tests the functioning of the system as a whole.

The other options are not right because system testing doesn't separate components or programs as it involves the actual evaluation of the whole system to find defects and it is done before the acceptance testing.

3 0
3 years ago
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