1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu
Gwar [14]

Answer:

$582,100

Explanation:

Cost of land                  $570,000

Less;Salvage parts sold ($23,000)

Demolition of old building   $33,000

Land preparation and leveling $2,100

Total cost of land                       $582,100

The ground breaking ceremony expenses are not capital expenditures therefore ignored in above working.

4 0
3 years ago
Presented below is information related to Splish Company. Cost Retail Beginning inventory $362,797 $286,000 Purchases 1,370,000
KiRa [710]

Answer:

$200,455

Explanation:

For calculating the inventory by the conventional retail inventory method. we required to do the following computations which are shown below:

Using cost method

Goods available for sale:

= Beginning inventory + Purchases

= $362,797 + $1,370,000

= $1,732,797

Using retail method

Goods available for sale:

= Beginning inventory + Purchases  + Net markups - Net markdowns

= $286,000 + $2,145,000 + $80,300 - $27,800

= $2,483,500

Now

Cost to retail ratio = $1,732,797 ÷ ($286,000 + $2,145,000 + $80,300)

                             = $1,732,797 ÷ $2,511,300

                             = 0.69

Now

Estimated ending inventory at retail

= Goods available for sale under Retail method - Sales revenue

= $2,483,500 - $2,193,000

= $290,500

So,

Estimated ending inventory at cost:

= Estimated ending inventory at retail × Cost to retail ratio

= $290,500 × 0.69

= $200,455

5 0
3 years ago
at a small company, one person prepares the paychecks for employees and another person reviews the check amounts and signs the c
____ [38]

At a small company, one person prepares the paychecks for employees and another person reviews the check amounts and signs the checks. this is an example of creating checks and balances approach to combatting destructive leadership.

<h3>What is company?</h3>

The term "company" refers to legal entities that are lawfully registered under the Company Act. The company's major goal is to increase profits while maintaining goodwill. With the assistance of management, the organization was flawlessly run. Employees are compensated by the company.

According to the small company, one authorisation figure checks the other's work being done, and thus maintains balance. The destructive leadership is checked and balanced.

As a result, the is an example of creating checks and balances approach to combatting destructive leadership.

Learn more about on company, here;

brainly.com/question/29354835

#SPJ1

Your question is incomplete, but most probably the full question was.

a- emphasizing low power distance

b- empowering employees

c- creating checks and balances

d- establishing norms and values

4 0
1 year ago
What is true about contemporary Indian Economy
tekilochka [14]

Answer:

There is a great scope for its growth in the future.

Hope this helps.

8 0
3 years ago
Consider the following model of a very simple economy. Household saving and investment behavior depend in part on wealth (accumu
Mekhanik [1.2K]

Answer:

Equilibrium Y = 462.5 , Equilibrium C = 362.5 , Equilibrium S = 100

Explanation:

  • At equilibrium : Aggregate Demand = Aggregate Supply

[ AD = C + I ] = [ AS = C + S = Y ]

45 + 0.6Y + 0.05 W + 100 = Y → 45 + 0.6Y + 0.05 (800) + 100 = Y

45 + 40 + 100 + 0.6Y = Y → Y ; 185 + 0.6Y = Y

Y - 0.6Y = 185

0.4Y = 185

Y = 185 / 0.4 = 462.5  

  • Consumption C = 45 + 0.6Y + 0.05W

Putting Y value : C = 45 + 0.6 (462.5) + 0.05 (800) → C = 45 + 277.5 + 40

C = 362.5

  • Income Y is either consumed (C) or saved (S). So, Y = C + S

Hence , S = Y - C → 462.5 - 362.5 = 100

Alternatively : As  C + I = C + S

Hence, I = S

Equilibrium Savings = Given Investment = 100

6 0
3 years ago
Other questions:
  • Les' Motors has sales of $482,800, cost of goods sold of $297,400, inventory of $169,600, and accounts receivable of $52,900. Ho
    5·2 answers
  • The national labor relations act of 1935 (wagner act) required employers to ________.
    13·1 answer
  • the cost object(s) of the activity-based costing method is(are): Multiple Choice The unit of product. The production departments
    11·1 answer
  • How do Government price ceilings and price floors affect the economy? Select all that apply.
    14·1 answer
  • Which statement describes an hourly wage job? Each paycheck is the exact same regardless of number of hours worked. Each paychec
    5·1 answer
  • On December 31, 2020, Pronghorn Inc. has a machine with a book value of $1,372,400. The original cost and related accumulated de
    7·1 answer
  • It doesnt matter what your goal is. any idea you may create is achievable. true or false​
    10·1 answer
  • Greer went to her favorite manicure shop but the quality of her manicure was not as well done as previous times. What characteri
    5·1 answer
  • The information below pertains to Barkley Company for 2015.
    15·1 answer
  • A ______ the demand curve represents a change in demand while a ______ the demand curve represents a change in the quantity dema
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!