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
satela [25.4K]
3 years ago
9

Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%.What would be the fair return for $1 Dis

count Store according to the capital asset pricing model (CAPM)
Business
1 answer:
Lady bird [3.3K]3 years ago
8 0

Answer:

13%

Explanation:

Please find attached a table containing further information needed to answer this question

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

Expected rate of return = risk free + beta x market premium

Beta measures systemic risk

The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

4% + (1.5 x 6%) = 13%

You might be interested in
Brandon, a manager at Cerium Corp., is required to provide individual performance feedback to his subordinates. In this scenario
Ilia_Sergeevich [38]

Based on the fact that Brandon has to provide information to subordinates, this communication is at an organizational level.

<h3>What is organizational level communication?</h3>

This refers to communication that takes place between employees of a company as a result of organizational requirements.

Brandon as a manager, has to communicate with other employees who are subordinates so this is organizational level communication.

Find out more on levels of communication at brainly.com/question/26933782.

#SPJ1

6 0
2 years ago
​a(n) _____ operation does not start processing or assembling products until it receives a customer order.
Scorpion4ik [409]
A Make-to-Order Operations operation does not start processing or assembling products until it receives a customer order. 
This type of strategy is used to minimize product abundance that exist in the market. Usually, being done by the company whose products sold under a large price (such as car or boats)
4 0
3 years ago
The four major expenditure categories of GDP are: Group of answer choices consumption, government purchases, taxes, and investme
Nimfa-mama [501]

Answer:

consumption, investment, government purchases, and net exports.

Explanation:

The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being.

Basically, the four major expenditure categories of GDP are consumption, investment, government purchases, and net exports.

4 0
3 years ago
Which of the following is not normally considered an area of personal finance?
sertanlavr [38]
Choice of a marriage partner does not form part of personal finance. Ideally, personal finance talks about retirement planning, investments, budgeting, cash flow or any other things that may affect financial stability.
4 0
3 years ago
On January 1, 2016, Miller Corporation had retained earnings of $8,000,000. During 2016, Miller reported net income of $1,500,00
Papessa [141]

Answer:

Miller's retained earnings on December 31, 2016 is $9,000,000.

Explanation:

Miller's retained earnings on 31 December 2016 = retained earnings on January 1, 2016 + net income - declared dividends

= $8,000,000 + $1,500,000 - $500,000

= $ 9,000,000

Therefore, Miller's retained earnings on December 31, 2016 is $9,000,000.

4 0
3 years ago
Other questions:
  • Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 2
    13·1 answer
  • When a manager develops a cost of capital for a specific project based on the cost of capitalfor another firm which has a simila
    15·1 answer
  • True or false? data warehousing is the process of extracting data from a data warehouse.
    6·1 answer
  • In 2009 President Obama and Congress increased government spending. Some economists thought this increase would have little effe
    7·1 answer
  • Organizations are often divided into units or departments. Which of these is NOT a common way to organize a company?
    13·1 answer
  • Neeta Landscaping Company provides lawn care services to a customer and immediately receives $45. Which of the following describ
    9·1 answer
  • Which is “harder” on a car, highway miles or city miles? Why?
    11·1 answer
  • At a higher price the quantity supplied of a product typically is<br><br> higher or lower
    9·1 answer
  • Is water wet or....?
    8·2 answers
  • All else being equal, which bakery has the absolute advantage? Mrs. Track’s Chips The Bakeshop Uncle John’s.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!