Answer:
Alpha for A is 1.40%; Alpha for B is -0.2%.
Explanation:
First, we use the CAPM to calculate the required returns of the two portfolios A and B given the risks of the two portfolios( beta), the risk-free return rate ( T-bill rate) and the Market return rate (S&P 500) are given.
Required Return for A: Risk-free return rate + Beta for A x ( Market return rate - Risk-free return rate) = 5% + 0.7 x (13% - 5%) = 10.6%;
Required Return for A: Risk-free return rate + Beta for B x ( Market return rate - Risk-free return rate) = 5% + 1.4 x (13% - 5%) = 16.2%;
Second, we compute the alphas for the two portfolios:
Portfolio A: Expected return of A - Required return of A = 12% - 10.6% = 1.4%;
Portfolio B: Expected return of B - Required return of B = 16% - 16.2% = -0.2%.
Answer: the difference between two numbers can be obtained by subtracting the smaller number from the bigger number.
• Here, - 0.4 is the smaller number, and 44.4 is the larger number.
• Therefore, the difference between the two is 44.4 - (- 0.4).
• Now, in mathematics, - and - makes a +.
This implies that, 44.4 - (- 0.4) = 44.4 + 0.4 = 44.8
∴ The required difference is 44.8.
Explanation: follow meif you want to help more
Answer:
I would say D because it sounds more reasonable for me
Answer: D
Explanation: he wants to learn so its D
Answer:
The correct answer is letter "B": Companies are formed to create value for society.
Explanation:
The Committee of Sponsoring Organizations (<em>COSO</em>) is an international acknowledgment organism where basic risk regulating frameworks and accomplishment in organizational internal control matters are established. When it comes to Enterprise Risk Management (<em>ERM</em>) the committee proposes key principles and concepts for clear guidance.
Creating value for society is not included in one of the core objectives of the COSO ERM.
