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victus00 [196]
3 years ago
15

David knows that the beta of his portfolio is equal to 1, but he does not know the risk-free rate of return or the market risk p

remium. He also knows that the expected return on the market is 7.50 percent. What is the expected return on David’s portfolio?
Business
1 answer:
Furkat [3]3 years ago
6 0

Answer:

7.5%

Explanation:

Since the beta of this portfolio is 1, it means that it is perfectly synced with the market rate of return. We are told that the market rate of return is 7.5%, so that means that the expected rate of return of the portfolio should also be equal to 7.5%.

Beta measures the volatility of the portfolio or the stocks in relation to the market. If the stock is less volatile, the beta will  be less than 1, if the stock is more volatile, the beta will be more than 1.

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Savatey [412]

Answer: Please refer to the explanation section

Explanation:

The question is not clear in terms of when is the financial year end, we only its 2021. We will assume the financial year started in January 2021 and ended December 2021

Operational Lease is an agreement where the lessor (owner of the asset)  allows the lessee (user of the asset) to only use the asset without the transfer of ownership. Ownership of the asset is not transferred to the lessee/ user of the asset. lease Payments/ Rental payments are considered as expenses and are recognize in the income statement.

Custom Shirts Inc entered into a Lease agreement on the 1st of September 2021. assuming the financial year ends on December 2021, the expense Recognized in the Income statement for the year ended December 2021 will

$ 24000 x 4 months/12 months =$ 8000

8 0
3 years ago
Tom is responsible for a group of manufacturing assembly workers who report to him. tom is a __________ manager.
jok3333 [9.3K]

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3 0
3 years ago
Vicky keeps a close eye on her company’s internal and external environment to discover possible opportunities for new products a
ddd [48]

Vicky keeps a close eye on her company’s internal and external environment to discover possible opportunities for new products and to discern possible threats from the competition. Vicky is engaged in SWOT analysis.

All the bodily environments on the planet are known as the surroundings. The environment includes the entirety living and everything nonliving. The nonliving part of the surroundings has three essential parts: the surroundings, the hydrosphere, and the lithosphere.

Surroundings especially include ecosystems, hydrosphere, lithosphere, and biosphere. However, it may be more or less divided into two types which include (a) Microenvironment and (b) Macro surroundings. it may also be divided into other sorts inclusive of (c) physical and (d) Biotic surroundings.

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VMariaS [17]

Answer:

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This strategy is used by companies wishing to gain market share. It is a moderate aggressive strategy, as it presents low aggregate risks, and innovation is not a very relevant factor in companies that use the analyzer strategy. Companies seek to provide a production of goods already in the market, with modifications and differentiations.

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3 years ago
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Oduvanchick [21]
The summary .................. including trade, FOREIGN AID and the remittance............. Balance of payment is the record of all economic transactions between the residents of a country and the rest of the world in a particular period of time. A balance of payment allows a country to monitor its import and export rates.
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