Answer:
C. 7.81%
Explanation:
Stock A and Stock B expected Return shall be calculated using the following formula:
Stock A/B expected [email protected]*Return at [email protected]*Return at [email protected]*Return at Recession.
Stock A return=0.21*18.9%+0.74*15.8%+0.05*-24.6%
=14.43%
Stock B return=0.21*9.7%+0.74*7.6%+0.05*4.2%
=7.87%
Market risk premium=(Stock A Return- Stock B return)/0.84
Market risk premium=(14.43%-7.87%)/0.84=7.81%
So Based on the above explanation, the answer shall be C. 7.81%
Answer: D
If you add 300 + 500 + 280 and then subtract the answer from 1,970 you will get your answer.
Based on the amount of debt and equity that Little LampLighter has, the weighted average rate of return would be 12.3%.
<h3>What is the weighted average rate of return?</h3>
First find the total value of debt and equity:
= 10 + 25
= $35 million
The weighted average return is:
= (10 / 35 x 8%) + (25 / 35 x 14%)
= 2.286% + 10%
= 12.3%
Find out more on weighted average rate of return at brainly.com/question/17284158.
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The consumer sector is the largest part of the macroeconomy
TRUE
There will be an increase in quantity supplied. (The Law of Supply)
- A key tenet of economic theory is the rule of supply, which asserts that a rise in price will result in an increase in the quantity provided, all other things being equal. In other words, there is a direct correlation between price and quantity, and quantities react to price changes in the same way.'
<h3><u>What is a case of the law of supply?</u></h3>
- For instance, if Apple produces 100 iPhones, then this is the quantity that is sold. The link between pricing and supply is referred to as the "law of supply." Supply also rises in tandem with price growth. In the event that prices decline, so will supply.
To Learn more about Law of Supply, Click the links.
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