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dexar [7]
3 years ago
14

The estimated beta for RDG is 0.74. The risk free rate of return is 4 percent and the Equity Risk Premium is 5 percent. What is

the required rate of return for RDG using the CAPM
Business
1 answer:
garri49 [273]3 years ago
3 0

Answer:

7.7%

Explanation:

Given :

Risk free rate of return = 4%

Risk premium = 5%

Estimated beta = 0.7

Using the CAPM relation :

The expected return = Risk free rate + (Risk premium * Estimated Beta)

Expected Return = 4% + (5% * 0.74)

Expected Return = 4% + 3.7%

Expected Return = 7.7%

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The artisans at Jewelry Junction in Phoenix are preparing to make gold jewelry during a 2-month period for the Christmas season.
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Answer:

The max revenue is "$32,300". The further explanation is described below.

Explanation:

(a)

The composition as well as response of models within 6 rows seems to be as described in the following:  

Maximum 1650B + 850N + 790P (B bracelets, N necklaces and P pins produce overall revenue)  

Yes of course,

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⇒  6.3B+3.9N+3.1P < = 125

The total labor hours will be:

⇒  17B+10N+7P < = 320

Integers B, N, P will become  

The response for LINDO is:

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N=0  

P=20  

Final Value of Maximization will be:

= 32,300

(b)

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The maximum salary will become:

= $32,300.

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3 years ago
Depreciation is defined as the Group of answer choices a. decrease in the stock of capital due to investment by firms. b. decrea
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Answer:

b. decrease in the stock of capital due to wear and tear.

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Depreciation is a reduction in the value of an asset over time, due in particular to wear and tear.

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4 0
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