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frozen [14]
3 years ago
13

The market risk premium is 9.0%, and the risk-free rate is 5.0%. If the expected return on a bond is 9.5%, what is its beta?

Business
1 answer:
leva [86]3 years ago
4 0

Answer:

The beta is 1

Explanation:

The computation of beta using the CAPM model is shown below:

As we know that

Expected rate of return = Risk free rate of return + Beta × Market risk premium

9.5% = 5% + Beta × 9.0%

9.5% - 5% = Beta × 9.0%

9.0% = Beta × 9.0%

So, the beta is 1

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

And, the same is to be considered  

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A ______ is a word, name, symbol, or device that is used in trade with goods to indicate the source of the goods and to distingu
alexira [117]

Answer:

trademark

Explanation:

The trademark refers to the logo design, name, word, symbol of the product that represents the company and used for the sale of the goods.

With the help of the trademark, the company could distinguish its products as compared with the competitors with the motive to gain a competitive advantage in the market place

Therefore this is a trademark

6 0
3 years ago
On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and
Marrrta [24]

Answer:

Bad debt expense $5.125

Explanation:

Initial Balance    

Accounts Receivable  $ 43.000  

Allowance for Uncollectible Accounts   $ 1.250

Entry    

Allowance for Uncollectible Accounts  $ 775  

Accounts Receivable   $ 775

New Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 475

Entry Adjustment

Bad debt expense  $ 5.125  

Allowance for Uncollectible Accounts   $ 5.125

END Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 5.600

7 0
3 years ago
The main goal of the cost budgeting process is to:
Delicious77 [7]
To estimate and control project cost within the approved budget and to achieve the stated goals of the project.
5 0
3 years ago
If firms and households form their expectations about inflation by looking at past inflation, this form of expectations formatio
eduard

Answer:

B) adaptive

Explanation:

Based on the scenario being described it can be said that this form of expectations formation is known as adaptive expectations. These are expectations formed from a process in which individuals predict what will most likely occur in the future based on the data of what has already happened in the past.

6 0
3 years ago
There are only three stocks in the economy. Stock A has 20 shares outstanding and a price per share of $10. Stock B has 15 share
gregori [183]

Answer:

Market value of stock A = 20 shares x $10 = $200

Market value of stock B = 15 shares x $3   = $45

Market value of stock C = 10 shares x $5   = $50

Total market value                                          $295

Amount to invest in stock A

= $200/$295 x $5,000

= $3,389.83

Explanation:

In this case, we will calculate the market value of each stock by multiplying the number of each stock by their corresponding market prices.

Thereafter, we will divide the market value of stock A by the total market value multiplied by amount available for investment ($5,000).

7 0
3 years ago
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