Answer:
The average expected rate of return on the market portfolio is 10 percent.
Explanation:
The CAPM (fixed asset pricing) model describes the relationship between systematic risk and expected return on assets, especially stocks. CAPM is widely used throughout the financial community to value high-risk securities and achieve the expected returns on assets when taking into account the risk of those assets and the cost of capital.
The formula for calculating the expected return on an asset taking into account its risk is as follows:
ERi = Rf + βi (ERm - Rf)
where:
ERi = expected return on investment
Rf = risk-free interest rate = 4 percent.
βi = beta inversion =1.0
(ERm −Rf) = market risk premium = 6 percent.
ERi = 4 + 1 ×(6) =10
The average expected rate of return on the market portfolio is 10 percent.
Answer:
C. Relevant range of production
Explanation:
Answer:
December 31, 2021
Debit : Dividends $28,500
Credit : Shareholders for Dividends $28,500
Explanation:
The Dividends declared present a present obligation by the entity to its shareholders.
Current supply and output. Until recent years, Organization of Petroleum Exporting Countries (OPEC) often set supply through a quota system.
Answer:
A partnership's allocations of income and deductions to the partners are required to be proportionate to the partners' percentage ownership of partnership profits in order to meet the substantial economic effect tests.
True
Explanation:
Equity and equality must be put in place as a yardstick to allocate such which would bring a common ground for both parties.