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Ainat [17]
3 years ago
10

The rate on T-bills is currently 5%. P. Tree Company stock has a beta of 1.69 and a required rate of return of 15.4%. According

to CAPM, determine the return on the market portfolio.
Business
1 answer:
Musya8 [376]3 years ago
8 0

Answer:

11.15%

Explanation:

Given that

Risk free rate of return= 5%

Beta = 1.69

Expected rate of return = 15.4%

As per capital asset pricing model

Expected rate of return = Risk free rate of return + Beta × (Market rate of return - risk free rate of return)

15.4% = 5% + 1.69 × (Market rate of return - 5%)

After solving this

Market rate of return = 11.15%

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These logs are an example of ecosystem and regulation support.

Explanation:

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Reference: Biodiversity Information System for Europe. “Ecosystem Services.” Ecosystem Services - Biodiversity Information System for Europe, 2019

8 0
3 years ago
A computer accessory salesman attempts to convince you to purchase a "solar neutrino" shield for your new computer. (It's even "
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Because neutrinos rarely, if ever, interact with my computer.

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3 years ago
The Best Company is reviewing two options for replacing a piece of machinery. The first machine costs $100,230 and has a four-ye
andriy [413]

Answer:

Equivalent annual cost method

Explanation:

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6 0
3 years ago
A company with a labor agreement under which union membership cannot be required as a condition of employment is considered a
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3 years ago
"If the top two companies in the golf club industry merged, their new market share would equal 15% of the market. This industry'
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Answer:

Yes, the FTC would ignore the merger and allow it to go through.

Explanation:

here are the options to the question ;

O No, the FTC would probably challenge the merger

O Maybe. The FTC would scrutinize the merger and make a case-by-case decislon.

Yes, the FTC would ignore the merger and allow it to go through.

HHI is used to calculate market power.

if the HHI index is less than 1000 post merger, the merger would be allowed to go through.

If the HHI index is between 1000 - 1800 post merger and the change in HHI is more than 100 after the merger, The FTC would scrutinize the merger and make a case-by-case decislon.

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