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Lunna [17]
3 years ago
14

The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricin

g model (CAPM), the expected rate of return on security X with a beta of 1.2 is equal to:________.
A. 0.06.
B. 0.144.
C. 0.12.
D. 0.132
E. 0.18
E(R) = 6% + 1.2(12 - 6) = 13.2%
Business
1 answer:
antiseptic1488 [7]3 years ago
8 0

Answer:

D. 0.132

Explanation:

Calculation for the expected rate of return

Expected rate of return = 6% + 1.2(12 - 6)

Expected rate of return=6%+1.2(6)

Expected rate of return =6%+7.2

Expected rate of return = 13.2%

Therefore the expected rate of return on security X with a beta of 1.2 is equal to: 13.3%

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Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal?
zimovet [89]

Answer:  Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks

Explanation:

The type of unemployment is not given but the above option is the only one that can reduce unemployment out of the options given.

People who recently lost their jobs and are on Unemployment insurance might find that their motivation to look for a job is not as strong as it should be because they are still receiving a paycheck at the end of the month. It will therefore most likely take them longer to find a job than necessary because they simply aren't looking hard enough.

If the Government stepped in and offered them a cash incentive to find a job quicker, this can have the effect of reducing unemployment by giving those people who were just mentioned renewed motivation to look for employment rather than just remain on Unemployment insurance.

3 0
4 years ago
Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insuran
Harlamova29_29 [7]

Answer:

$ 3100 loss amount is not covered by insurance.

Explanation:

Amount not covered under insurance = Amount lost - Maximum Insurance Amount

  • For Jewellery  : Jewellery lost - maximum jewellery amount cover  = 3800 - 1000  = 2800
  • For Silverware : Silverware lost - maximum silverware amount cover  = 2800 - 2500 = 300

So, Total Amount loss not covered = Loss at jewellery + loss at silverware

= 2800 + 300 = $3100

6 0
3 years ago
True or false? until recently, the public health approach has been to focus on economic factors in seeking risk reduction.
love history [14]
False. The approach to public health is to ignore economic factors for risk reduction. However, there is a greater willingness on the part of the public health advocates to consider costs and benefits in risks evaluation because of an increase in understanding and accepting that economic factors are important to the health of everyone.<span> </span>
8 0
3 years ago
Andy: "This is to confirm our telephone conversation of earlier today. 200 lbs. of T-bone at $2.89 per pound." Barb: "Yes, but t
Murljashka [212]

Answer:

b. Barb is correct. The agreement must be in writing to be enforceable.

Explanation:

For a contract between two parties to be enforceable, it will need to be verifiable. A phone conversation that involves verbal agreement can be denied by either party. So it is most preferable when contracts are on written form.

In this instance Andy had the following conversation and there was conflict in the agreement between the parties.

Andy: "This is to confirm our telephone conversation of earlier today. 200 lbs. of T-bone at $2.89 per pound." Barb: "Yes, but that's 100 pounds at $2.99." Andy: "Too late, we already reached agreement by phone." Barb: "Too bad, it wasn't in writing."

Of the agreement had been in writing then it would have been enforceable on Barb.

6 0
3 years ago
Sunland Company wants to sell a sufficient quantity of products to earn a profit of $300000. If the unit sales price is $12, uni
Yanka [14]

Answer:

125,000 units

Explanation:

Given that,

Target profit = $300,000

Unit sales price = $12

Unit variable cost = $8

Total fixed costs = $200,000

Firstly, we need to find out the contribution margin per unit:

= Unit sales price - Unit variable cost

= $12 - $8

= $4

Now, units required to sold for earning the desired profit is calculated by dividing the sum of desired net income and total fixed costs by the contribution margin per unit. It is calculated as follows:

= (Target net income + Total fixed cost) ÷ Contribution margin per unit

= ($300,000 + $200,000) ÷ $4

= $500,000 ÷ $4

= 125,000 units

Therefore, this company must be sold 125,000 units to earn income of $300,000.

4 0
3 years ago
Read 2 more answers
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