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WINSTONCH [101]
3 years ago
5

Consider the CAPM. The risk-free rate is 7%, and the expected return on the market is 13%. What is the expected return on a stoc

k with a beta of 1.5?
Business
1 answer:
Ber [7]3 years ago
5 0

Answer:

r = 0.16 or 16%

Explanation:

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM  - rRF)

Where,

rRF is the risk free rate

rM is the return on market

r = 0.07 + 1.5 * (0.13 - 0.07)

r = 0.16 or 16%

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The value chain describes the costs associated with making a product. What​ box(es) are expensed immediately when incurred on th
KIM [24]

Answer:

ALL EXCEPT PRODUCTION

Explanation:

The costs of the value chain includes: Research and Development, Design Costs, Production, Marketing, Distribution and Customer Service.

The costs of the value chain are expensed in the current year income statement because they majorly (except production costs) fall under the category called periodic costs.

Periodic costs are costs that are more aligned with the passage of time than directly traceable to units of a product or event. Another major difference between product costs and period costs is that product costs can only be incurred when the products have been acquired or manufactured, while periodic costs will apply when the goods have not been acquired or produced yet, or as aforementioned, are associated with the passage of time.

In the light of above definition, all costs within the value chain are expensed as periodic costs with the exception of production costs which obviously are product costs.

8 0
3 years ago
This year henry realized a gain on the sale of an antique car that he inherited from his uncle. the buyer has promised to pay he
Kruka [31]
The answer to this question is <span>Wherewithal to pay
In the wherewithal to pay concept,  the</span><span> Income will be recognized in the period in which the company has the means to </span>pay<span> the tax on the income. Often times, company make their report to show a loss on purpose in order to postpone the tax payments</span>
4 0
3 years ago
The common stock of the
oksian1 [2.3K]
It’s A , I think I could be wrong
3 0
2 years ago
The size and cut of a diamond allows people looking at a ring to roughly estimate its cost and make a judgment about the wearer'
Sholpan [36]

The answer is the Status symbol.

A status symbol is typically an object meant to symbolize the high social and financial position of its owner.

Status symbols frequently vary as a culture and its ideals evolve.

Different status symbols may also be dictated by one's line of work, and some uniform designs may be interpreted as status symbols.

Status symbols in capitalist society are frequently connected to material prosperity. Status symbols might alter depending on where they are used.

For instance, a physical scar may signify honor or bravery in cultures where warriors are revered, becoming a status symbol.

Hence, in the given scenario where the size and cut of a diamond allow people looking at a ring to roughly estimate its cost and make a judgment about the wearer's economic status. A diamond is a status symbol.

Learn more about capitalist society:

brainly.com/question/10441842

#SPJ4

5 0
2 years ago
Securities not listed on one of the exchanges trade in the over-the-counter market. In this exchange, dealers "make a market" by
GREYUIT [131]

Answer:

(C) doing both of the above

Explanation:

When dealers "make a market", they do so by providing liquidity in a market that may lack such. Liquidity measures the ease with which participants can buy and sell in a market. Thus, by making a market, a dealer buys stocks for inventory when investors want to sell, and sells stocks from inventory when investors want to buy.

6 0
3 years ago
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