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scZoUnD [109]
3 years ago
8

Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, I

R. IP is expected to be 4% and IR 6%. A stock with a beta of 1 on IP and 0.4 on IR currently is expected to provide a rate of return of 14%. If industrial production actually grows by 5%, while the inflation rate turns out to be 7%, what is your best guess for the rate of return on the stock? (Round your answer to 1 decimal place.)
Business
1 answer:
Arisa [49]3 years ago
3 0

Answer:

15.4%

Explanation:

Calculation to determine your best guess for the rate of return on the stock

The revised estimate on the rate of return on

the stock would be:

Before

14% = α +[4%*1] + [6%*0.4]

α = 14% - 6.4%

α = 7.6%

With the changes:

7.6% + [5%*1] + [7%*0.4]

= 7.6% + 5% + 2.8%

= 15.4%

Therefore your best guess for the rate of return on the stock will be 15.4%

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valentinak56 [21]

Answer:

HR Function refers to areas such as recruitment, selection, recruitment and retention, performance evaluation, promotional preparing, and reimbursement managerial staff.

Explanation:

  • Throughout traditional HRM every one of these operations has been associated with capacity building and therefore are constrained even within the HR manager. Those other operations are not focused on an organization’s strategy.
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4 0
3 years ago
Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($40,00
lana [24]

Answer:

$2,100

Explanation:

Particulars                     Fair market value      Basis        Differences

Inventory                             $60,000              $30,000       $30,000

Account receivables           $40,000              $40,000       $0

Equipment                           $60,000              $80,000      <u> ($20,000)</u>

Taxable gain                                                                           $10,000

Tax rate                                                                                   <u>   21%    </u>

Built in gains tax                                                                     <u>$2,100  </u>

So therefore, the built-in-gains tax that Clampett (Incorporated) will pay in 2021 is $2,100.

3 0
3 years ago
________ covers the expression of creative ideas such as documents, web content, movies, musical compositions, lectures, and com
nata0808 [166]

The best answer to the question is (D) copyright law.

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The other options are unsuitable since <em>patent protection</em> is for inventions, <em>trademark theory</em> is for companies and their products, while<em> free-market case law </em>does not refer to an actual set of laws.

7 0
3 years ago
Which type of shopping is characterized by activities oriented toward a specific, intended purchase or purchases?
IrinaVladis [17]

The type of shopping that is being identified above is acquisitional shopping because this is where consumers have the intention of visiting or going to the store to shop in a way that they would purchase products and acquire for services. It could be seen above as the shopping is characterized because of the consumers will of having to purchase a specific product.

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A. Billed customers for fees earned, $112,700.
Sav [38]

Answer:

C.

Explanation:

7 0
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