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vovikov84 [41]
2 years ago
13

Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 14% and

a beta of 1.8. The expected market rate of return is 9% and the risk-free rate is 5%. Security __________ would be considered the better buy because
Business
1 answer:
barxatty [35]2 years ago
8 0

Answer:

B; it offers an expected excess return of 1.8%

Explanation:

Here are the options :

A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%

to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM

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

Stock A = 5% + 1.2(9% - 5%) = 9.8%

Stock B = 5% + 1.8(9% - 5%) = 12.20%

The next step is to determine the excess return

stated expected return - calculated expected return = excess return

Stock A's excess return = 10% - 9.8% - 0.2%

Stock B's excess return = 14 - 12.20 = 1.8%

Security B would be considered because it has a higher excess return

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Explanation:

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2 years ago
Ibram Corporation had 200,000 shares of $1 par value common stock outstanding. If Ibram announces a 4-for-1 stock split, the par
LenaWriter [7]

Answer:

Post split Shares: 800,000

Post split par value: $0.25

Explanation:

Stock split seeks to increase the number of shares available for trading on the exchange thus increasing the liquidity. Stock split of 4 for 1 increases the shares by 4 times e.g. every holder of 1 share will receive total of 4 new shares. Thus the shares will increase to 4 times: (200,000 * 4) = 800,000.

Post split share price is calculated by dividing par value to the proposed split.

($1 / 4) = $0.25 per share.

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3 years ago
Determine the total assets of Novak Corp. at December 31, 2020.
andreyandreev [35.5K]

Answer: $76,220

Explanation:

Total Assets = Current Assets + Fixed Assets

Current Assets = Cash + Accounts Receivable

= 13,320 + 19,980

= $33,300

Fixed Assets = Equipment = $42,920

Total Assets = 33,300 + 42,920

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3 years ago
at the phase 3 meeting, the project manager will outline the process to . a.) transfer the deliverables into operational state a
alexandr1967 [171]

The project manager will outline how to transfer the deliverables in operational status and formally close the project at the phase 3 meeting.  So, the correct option choice for this question would be option (b).

<h3>Write a short note on project management.</h3>

Project management may be regarded as the process of overseeing a team's activity to complete all project objectives within the established parameters. Usually, explanations of this information are included in the project documentation that is created at the beginning of the development process. Scope, budget and time are the three basic constraints. The other issue is how to best distribute the required inputs while still using them to accomplish predetermined objectives.

To deliver a finished product that satisfies the client's needs is the aim of project management. Modifying the client's brief to better effectively accomplish the client's aims is typically the goal of project management. Once the client's objectives are known, they should direct all other project members' decisions.

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1 year ago
Sloane tells eden that brad is a horrible son to his mother. brad sues for defamation even though he suffered no injury. brad wi
cricket20 [7]

"Defamation of character"

Is a catch-all term for any statement that hurts someone's reputation. Written defamation is called "libel," while spoken defamation is called "slander." Because written statements last longer than spoken statements, most courts, juries, and insurance companies consider libel more harmful than slander.

Defamation is not a crime in most states, but it is a "tort" (a civil wrong, rather than a criminal wrong). The person who has been defamed (the "plaintiff") can sue the person who did the defaming (the "defendant") for damages.

Defamation law tries to balance competing interests: On the one hand, someone shouldn't be able to ruin your life by telling lies about you; on the other hand, people should be able to speak freely without fear of litigation over every insult, disagreement, or mistake. Political and social debate is important in a free society, and we obviously don't all share the same opinions or beliefs. For example, political opponents often reach opposite conclusions from the same facts, and editorial cartoonists often exaggerate facts to make their point.

How Do You Prove Defamation?

Defamation happens when a person makes a false statement—verbally or in writing—about someone else that damages that person's reputation. Defamation laws vary from state to state, but the basic principles of defamation law are the same in every state.

A plaintiff suing for defamation typically must show:

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Defenses to Defamation Lawsuits :

Defamation claims are complicated and hard to prove because defamation laws have to strike a balance between allowing people to protect their reputations and allowing the free exchange of information, ideas, and opinions.

You can defend yourself against a defamation lawsuit if the statement you made was:

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