Answer:
11.68%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.4% + 1.3 × (10% - 4.4%)
= 4.4% + 1.3 × 5.6%
= 4.4% + 7.28%
= 11.68%
The (Market rate of return - Risk-free rate of return) is also called market risk premium
Answer:
I used an excel spreadsheet because there is not enough room here.
Explanation:
Answer and Explanation:
a. This is a fundamental risk case since there is a loss possibility. As the attack is done by the terrorists and the loss is definite in terms
b. It is a property risk as the house is damaged in a fire that resulted into a financial loss
c. It is a personal risk case as the head of the family is totally disabled that directly impact the family which leads to non-fulfillment of the financial liabilities so ultimately its an income loss.
d. It is a case of speculative as the investor purchase 100 shares that resulted in either profit or loss
e. This is a case of fundamental risk as the overflow of the river impacts the property of thousands people
f. This is a case of financial risk as the risk impacted the opposite changes in the price of the commodity, rate of interest, etc
g. It is a speculative case as the worker could either win or loss
Answer and Explanation:
As it is given that Ginny takes 3 hours for brewing a root beer gallon and 2 hours to make a pizza
So,
the opportunity cost of brewing a root beer gallon is
= 3 ÷ 2
= 1.5 gallons
And, the ginny opportunity cost for brewing a root beer gallon is
= 7 ÷ 5
= 1.4 gallons
As she takes 5 hours to make a pizza and 7 hours for brewing a root beer gallon
