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padilas [110]
3 years ago
14

a. If the interest rate on Treasury bills is 5% and the expected return on the market portfolio is 15%, what is the expected ret

urn on the shares of the law firm according to the CAPM
Business
1 answer:
mixer [17]3 years ago
7 0

Answer: 2%

Explanation:

The Capital Asset Pricing Model (CAPM) can be used to calculate expected value as thus;

= Risk free rate + beta (Market return - risk free rate)

= 5% + (-0.3) (15% - 5%)

= 5% - 3%

= 2%

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CaHeK987 [17]

Answer: <em>Limited Liability Company</em>

Explanation:

Limited liability company also known as LLC is referred to as the United States specific type of private limited organization. It is referred to as a business structure or component that tends to combine or mix pass-through taxation for a sole proprietorship or a partnership with the tendency of a limited liability of an organization. A LLC is not an organization under the state law, it is referred to as a legal type of an organization that tends to provide a limited liability to the owners in several jurisdictions.

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4 years ago
Rapp and Wunderman are subsidiaries of large agency holding companies that provide services for companies that want to communica
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Answer:

The correct answer is letter "A": direct-marketing.

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3 0
3 years ago
According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock of 12, and a ris
Neporo4naja [7]

The question is incomplete. Here is the complete question

According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock beta of 1.2, and a risk-free interest rate of 4%?

Answer:

8%

Explanation:

The expected return on security is 13.6%

The stock beta is 1.2

The risk free interest rate is 1.4

Therefore, using the CAMP , the market risk premium can be calculated as follows

13.6%= 4% + 1.2×MRP

13.6%-4%= 1.2MRP

9.6%=1.2MRP

MRP= 9.6/1.2

MRP= 8%

Hence the market risk premium is 8%

6 0
3 years ago
Which of the following statements is false?
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A student loan is an award I think
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Martha's grandfather put $2000 in a savings account for Martha's college fund when she was born. If the account pays three perce
seraphim [82]

Answer: $3,425

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3 years ago
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