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marissa [1.9K]
3 years ago
11

Which of the following is consistent with the CAPM and efficient capital markets? A) A security with a beta of 1 has a return la

st year of 8% when the market has a return of 12%. B) Small stocks with a beta of 1.5 tend to have higher returns on average than large stocks with a beta of 1.5. C) A security with only diversifiable risk has an expected return that exceeds the risk-free interest rate.D) A security with only systematic risk has an expected return that exceeds the risk-free interest rate.
Business
1 answer:
Rus_ich [418]3 years ago
6 0

A security with a beta of 1 has a return last year of 8% when the market has a return of 12%.

Answer: Option A

<u>Explanation:</u>

In a market of the capitals, the return that a person will get from the security will depend upon the risk that has been associated with that security. The CAPM says that the return of the security that a person will get depend upon the beta of the security. Here beta is the measure with which we can measure the risk of the security. It is an absolutely correct measure of the security risk.

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dentify a true statement about sales-oriented firms. a. They target their products to specific groups of people. b. They recogni
stellarik [79]

Answer:

Correct answer is (d). They target their products at "everybody" or the "average customer."

Explanation:

Every sales-oriented firms want more customers and want to make more profit by selling to as many customers as possible, this makes them to seek and target their products to every potential buyers and other average customers available.

6 0
3 years ago
Billy Bob's Barber Shop knows that a 5 percent increase in the price of their haircuts results in a 15 percent decrease in the n
Gala2k [10]

Answer:

Option (B) is correct.

Explanation:

Given that,

Percentage increase in price = 5%

Percentage decrease in quantity demanded = 15%

Therefore,

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Elasticity\ of\ demand=\frac{15}{5}

                                           = 3.0

Hence, elasticity of demand facing Billy Bob's Barber Shop is 3.0

6 0
3 years ago
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note toLou who, in turn, indorses it to Mona, who
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Answer:

it's Jake, Kim, or Lyron or basically the first one but yours appears to be different

6 0
3 years ago
If you visited a doctor and the total cost of the visit was $50, but you had a $15
Vinvika [58]

Answer: $15

Explanation:

A copayment or copay simply refers to a fixed amount that is paid by a patient for a covered service, before the patient will receive service. It is an insurance policy which someone who's insured will pay whenever he or she access a medical service.

In this case, since the patient has a copay of $15, then the patient will have to pay $15.

7 0
3 years ago
Political forces that affect transportation businesses
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It is important to note that politics and the economy have effects on the transportation industry, as the industry is ever changing with new policies, regulations, or capacity issues.

Politicians and the policies they create dictate the US economy, effecting all industries. It is seen that the transportation industry saw effects because of the trade and tariff wars. The overall regulations depend largely on the economic and political outlook of the party in power.

For instance, a government that is inclined to pursue neo-liberal policies,  could pass more legislations favoring industries and big businesses, while a government inspired by socialism could push policies favoring small businesses.

Hence, the answer was given and explained above.

To learn more about politics and political party here:

brainly.com/question/12548909

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4 0
1 year ago
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