Answer:
Find the balance sheet in attached excel file
Explanation:
Please note that the workings is before the final figures placed in respective columns.
Answer: A higher risk often means a higher return.
Explanation: Risk can be defined as the potential effect of an event, determined by combining the likelihood of the event occurring with the effect that it should occur.
Return can be defined as a gain or loss from an investment.
The relationship between risk and return is that the higher the risk, the higher the returns, however, a higher risk has a potential for loss. Hence, the word often in the statement "A higher risk often means a higher return."
A lower risk does not always mean a lower return, a lower risk has a potential for a higher return.
B. Current. Currents are the way electricity travels, voltage is how many volts of electricity is in the current and amperage is the strength of the current.
Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
