1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dexar [7]
3 years ago
6

Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expect

ed return for Benson Industries?
Business
1 answer:
omeli [17]3 years ago
8 0

Answer:

Re = 10%

Explanation:

using the CAPM formula, the cost of equity is:

Re = risk free + (beta x market premium)

  • risk free = 4%
  • market premium = market return - risk free = 12% - 4% = 8%
  • beta = 0.75

Re = 4% + ((0.75 x 8%) = 10%

Since the beta is lower than 1, this stock is less volatile than the market, that is why the required rate of return is lower than the market return.

You might be interested in
Which of the following would make the best thesis statement for a debate? a. Art and music classes are great. b. Schools should
Novosadov [1.4K]
The best answer choice would be "B". This gives the main idea of what your debate would be about. It is also clear, and not biased or opinionated.

I hope this helps!
~cupcake
3 0
3 years ago
Read 2 more answers
One of the most important in-store factors is the salesperson. This influence can be understood in terms of ________ theory, whi
amm1812

Option (b), The salesperson is one of the most crucial in-store elements. The exchange theory, which emphasizes that each participant provides to the other and anticipates receiving something in return, can be used to explain this influence.

<h3>What does exchange theory actually mean?</h3>

According to the social exchange hypothesis, two people's relationships grow as a result of a process of cost-benefit analysis. In other words, it's a statistic designed to measure the amount of effort a person expends during a face-to-face conversation.

<h3>What are the basic tenets of the exchange theory?</h3>

The basic tenet of the theory of social trade is the concept of costs and benefits. This suggests that people's decisions and behaviors are influenced by their estimations of cost and reward. Costs are the unfavorable outcomes of a decision, including time, money, and energy. Social interactions produce benefits, which are rewards.

Learn more about exchange theory: brainly.com/question/29611150

#SPJ4

6 0
1 year ago
In reviewing a bank's balance sheet, the liabilities are greater than the assets. What is the best explanation that could
Alex777 [14]

Answer:

cash

Explanation:

The top line, cash, is the single most important item on the balance sheet. Cash is the fuel of a business. If you run out of cash, you are in big trouble unless there is a "filling station" nearby that is willing to fund your business

6 0
3 years ago
Read 2 more answers
Ruis Corporation, a publicly held corporation, has thirty-five members on its board of directors. In order to conduct business e
Oliga [24]

Answer:

illegal

Explanation:

According to my research on the rules or regulations that a corporation must follow, it can be said that based on the information provided within the question what was done is illegal. Based on the Sarbanes-Oxley Act every entity titled as a corporation is required by law to have an audit committee. Since one was not created for the Ruis Corporation it is technically an illegal corporation.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
The relationship between increasing prices and decreasing money value is called
Lana71 [14]

Answer:

Inflation occurs when prices rise across the economy, decreasing the purchasing power of your money.

Explanation:

Can I please get on the brainlist

6 0
1 year ago
Read 2 more answers
Other questions:
  • Sandra has good credit and qualifies for a home loan. Sandra's loan could negatively affect her credit score if she _____.
    10·1 answer
  • Which of the following is NOT an employer responsibility stated in OSHA’s Bloodborne Pathogens Standard?
    10·2 answers
  • According to the Monetarist theory, _____________is a critical causal force that determines the nominal GDP..
    10·1 answer
  • What is a source of financial vulnerability for people in late adulthood?
    14·1 answer
  • The term "spreading the financial statements" refers to __________
    10·1 answer
  • It is important to be able to _______ a problem and ______ it to the provider immediately
    13·1 answer
  • Hines Cosmetic Co. sold beauty preparations nationally to beauty shops at a standard or fixed- price schedule. Some of the shops
    10·1 answer
  • A certain project has a project cost of $387,000 and the annual inflows resulting from the product created is $64,000. What is t
    7·1 answer
  • Under a program called the Emissions Trading​ Scheme, the governments of European Union member nations establish overall targets
    11·1 answer
  • The SBA is a source of assistance that provides small businesses with the following
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!