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
timofeeve [1]
3 years ago
8

A stock has an average expected return of 9.7 percent for the next year. The beta of the stock is 1.34. The T-Bill rate is 5.2%

and the T-Bond rate is 3%. What is the market risk premium
Business
1 answer:
givi [52]3 years ago
4 0

Answer:

3.4%

Explanation:

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

9.7 = 5.2 + 1.34(x - 5.2)

9.7 - 5.2 =  1.34(x - 5.2)

3.35 = x - 5.2

You might be interested in
Scott consumes only two goods, rice and soup. His preferences are complete, transitive, monotonic and convex. When the price of
BaLLatris [955]

Answer:E(none of the above)

Explanation:

3 0
3 years ago
A phone call to a government official by an employee of the enron corporation disclosed the deception and dishonesty of the firm
UNO [17]
This employee played the role of a: whistleblower.
3 0
3 years ago
Tito Corporation had net income of $2,000,000 and paid dividends to common stockholders of $300,000 in 2017. The weighted averag
Sidana [21]

Answer:

a. 10 times

Explanation:

The computation of price-earnings ratio is shown below:-

Earning per share = Net income ÷ Weighted average shares outstanding

= $2,000,000 ÷ 400,000

= 5

Price earning per share = Market price per share ÷ Earning per share

= $50 ÷ 5

= 10 times

Therefore for computing the price earning per share we simply applied the above formula.

8 0
3 years ago
Think about different ways people are compensated for work, including salary compensation, hourly wages, and contracted compensa
DENIUS [597]

Answer:

c

Explanation:

salary is a regular fixed payment that a person earns for performing work during a specific period of time.

8 0
3 years ago
Marcy owns the company Caps for Kids and sells her hand-knitted caps for $20 each. The variable cost per cap created is $10, and
iragen [17]
At breakeven point, the cost is equal to the revenue. This also means that the net profit is equal to zero. If we let x be the number of units sold or produced, the total costs and revenue are calculated as follows:

Total Cost = 10x + 10,000
Total Revenue = 20x

Equation both,
                10x + 10,000 = 20x
The value of x from the equation is 1000.

Answer: 1000
3 0
3 years ago
Other questions:
  • Patagonia was one of the first companies to offer employees a child care program. plans such as child care, sick-leave pay, vaca
    15·1 answer
  • A share of stock in the Bree Medical Supply Company is quoted at 351/4. Suppose you hold 20 shares of that stock, which you boug
    6·1 answer
  • Which of the following statements is true of the current ratio? The larger the current ratio, the harder it is for the firm to p
    12·1 answer
  • This days shout out is for millytilltip and alex and itscharleyo if you guys want to be in a shout out on brainly pls friend me
    9·2 answers
  • Assuming the relevant required return on levered cash flows is 15 percent, and that the property will be held by a buyer for fiv
    11·1 answer
  • The following unit data were assembled for the assembly process of the Super Co. for the month of June. Direct materials are add
    7·1 answer
  • An investment in an available-for-sale security is transferred to trading because the company anticipates selling the stock in t
    11·1 answer
  • Mocha Company earned net income of $ 105,000 during the year ended December ​31, 2018. On December ​15, Mocha declared the annua
    10·1 answer
  • FARO Technologies, whose products include portable 3D measurement equipment, recently had 36 million shares outstanding trading
    5·1 answer
  • Partners X, Y and Z have capital balances of $80, 000, $180,000 and $60,000 respectively. Immediately prior to liquidation. Tota
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!