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lozanna [386]
3 years ago
5

The risk-free rate is 2.2 percent and the market expected return is 11.9 percent. What is the expected return of a stock that ha

s a beta of .86?
Business
1 answer:
zepelin [54]3 years ago
5 0

Answer:

the expected return of a stock is 10.542%

Explanation:

The computation of the expected return on a stock is shown below:

Expected return on stock is

= Risk free rate + beta × (market rate of return - risk free rate)

= 2.2% + 0.86 × (11.9% - 2.2%)

= 2.2% + 0.86 × 9.7%

= 2.2% + 8.342

= 10.542%

hence, the expected return of a stock is 10.542%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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svetlana [45]

Answer:

The journal entry to record the sale :

Debit : Note Receivable $120000

Credit : Sales Revenue $120000

Explanation:

The journal entry to record the sale includes a Debit entry of a Note Receivable at the amount owed by the customer since there was no immediate payment of cash and a Credit entry of Sales Revenue to recognize Income earned.

8 0
2 years ago
Jessica Simpson sets up shop to sell “Buffalo Wings.” She observes that if the price drops from $3.50 per order to $2.50 per ord
Sidana [21]

Answer:

(I) Price elasticity = 1/6

(II) the $2.5 price gives the higher revenue: 1,250

Explanation:

(I) price elasticity

E_s =\frac{\frac{Q2 - Q1}{(Q2+Q1)/2}}{\frac{P2 - P1}{(P2+P1)/2}}

↑Q (500 - 300)/((500+ 300) / 2)

↑Q 200 / (800/2) =  200/400 = 1/2

↑P (3.5 - 2.5)/((3.5+2.5)/2)

↑P 1/(6/2) = 1/3

Es = \frac{1/2}{1/3}  = 1/6

(II) total revenue

3.5 x 300 = 1,050

2.5 x 500 = 1,250

7 0
3 years ago
Read 2 more answers
Helga runs a website on which she sells houseplants. She also earns through pay-per-click advertising that allows search engines
Romashka [77]

Answer:

Gardening gloves

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Garden scissors

Watering cans

Explanation:

In the context, Helga owns and runs a online business. She has a website where she sells online houseplants. There are various houseplants available on her site from where people can buy it and get it delivered to their house.

She also makes earnings by the advertisement of various gardening products whose add runs on her sire and she earns through a pay per click basis. Some of the products that are likely to be advertised in her website are gardening gloves, garden scissors, terracotta planters, watering cans, manures and fertilizers,etc.

6 0
3 years ago
Meryl, a training manager, is making a presentation to her company's business leaders. She says meeting the company's five-year
n200080 [17]

Answer:

The correct answer is "the company has not budgeted sufficient funds for training".

Situational constraints are the factors that affect the behavior and performance in a negative way by placing limitation on personal attributes and motivation. Example - lack of equipment, money, material, etc. In this scenario, employees and supervisors are eager to learn about using new technology but the only constraint that is likely to stand in a way meeting the objective is that the company has not budgeted sufficient funds for training.

6 0
3 years ago
Which of the following can a grocery store change in the long run?
ddd [48]

Answer:

I believe all of the above

Explanation:

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