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marissa [1.9K]
4 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]4 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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When inflation occurs each dollar of income will buy ______ goods and services than before. Multiple choice question. fewer more
Sliva [168]

When inflation occurs each dollar of income will buy fewer goods and services than before.

<h3>What is inflation?</h3>
  • In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation.
  • Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
  • Deflation, a continuous drop in the general level of prices for goods and services, is the reverse of inflation.
  • The annualized percentage change in a general price index, or the inflation rate, is the most widely used indicator of inflation.
  • The consumer price index (CPI) is frequently employed for this purpose because price increases are not uniform across the board.
  • In the United States, wages are also calculated using the employment cost index.

Therefore, when inflation occurs each dollar of income will buy fewer goods and services than before.

Know more about deflation here:

brainly.com/question/13562161

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6 0
2 years ago
Select all that apply.
Semenov [28]

Answer:

Wildlife conservationists.

Explanation:

Wildlife conservationists are those people who do the practice of protecting wild species and their habitats to prevent species from going extinct. If anyone wants to make a career in Agriculture, Food & Natural Resources, he/she must have to know which species are endangered now and which species might be endangered in the future. Along with this, they must have to understand how those species could be saved from being extinct. After knowing all of these, he/she might select their career as a wildlife conservationist. Among the other three professions which are said in question aren't possible to choose from the side of a person who knows Agriculture, Food & Natural Resources.

7 0
3 years ago
Read 2 more answers
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ende
White raven [17]

Answer:idk I’m sorry bud

Explanation:

6 0
3 years ago
A manufacturing company has some existing semiautomatic production equipment that it is considering replacing. This equipment ha
dem82 [27]

Answer:

It is a better deal to keep the old equipment

Explanation:

\left[\begin{array}{cccc}&New&Old&Differential\\$leasing cost&0&-23,000&23,000\\$operarting cost&-26,000&-12,500&-13,500\\$operating income&-26,000&-35,500&9,500\\$tax shield&4,200&0&4,200\\$Result&-21,800&-35,500&13,700\\\end{array}\right]

each year the new equipment generates a 13,700 adidtional cash outflow

We should check if the cost saving per year at 8% will have a present value lower than the proceed from the sale:

C 13,700.00

time 5

rate 0.08

13700 \times \frac{1-(1+0.08)^{-5} }{0.08} = PV\\

PV $59,076.1377

As the differential cost exceeds the amount of proceed we would get if the old equipment is sold we already conclude we should keep it

5 0
3 years ago
Alice finds she no longer is able to pay premiums on her $50,000 Whole Life Policy, but needs that amount of protection for her
arsen [322]

Answer:

correct option is d. extended term

Explanation:

given data

pay premiums =  $50,000

 

solution

As extended Term will allow here the amount present cash value of the policies that is buy the single premium term policy

it is the same face amount for the long time period

and here  Fixed Amount will be for Settlement Option

and the Paid Up option will be Option Dividend Option

so here correct option is d. extended term

8 0
4 years ago
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