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
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%

You might be interested in
Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers' ___
Mandarinka [93]

Answer:

D) zone of tolerance.

Explanation:

Zone of tolerance: It defined as the service acceptance level of the customer beyond which the customer does not tolerate the service. it is an area between desired service and acceptable service, the acceptable service is the standard service in the market, which is made by advertisements and other communication sources.

In the given case, Nicole is able to deliver the acceptable service to the customer instead of being understaffed as she knows customer´s "zone of tolerance" before going elsewhere.

8 0
3 years ago
Severe folate deficiency in adolescence can result in:
gregori [183]
It can result in many different symptoms including extreme fatigue, mouth sores, gray hair, tongue swelling, and growth problems.
3 0
3 years ago
Madison Company issued an interest-bearing note payable with a face amount of $30,000 and a stated interest rate of 8% to the Me
kondaur [170]

Answer:

zero

Explanation:

It will be Zero. Because its not an operating activity. It will come under Finance activity in the cash flow of Madison company .

5 0
3 years ago
What is the margin of safety?<br> a. $ 25,000<br> b. $ 50,000<br> c. $100,000<br> d. $250,000?
Andrej [43]
It depends what for... but If its really important, u would say 50,000
3 0
3 years ago
The key feature of an oligopolistic market is that Select one: a. a single firm chooses a point on the market demand curve. b. e
Lesechka [4]

Answer:

c. a small number of firms are acting strategically.

Explanation:

The Firms in oligopoly can influence market outcome and thus they act strategically to achieve the expected outcome.

6 0
3 years ago
Other questions:
  • Ahrends Corporation makes 70,000 units per year of a part it uses in the products it manufactures. The unit product cost of this
    8·1 answer
  • Alexandra owns a small landscaping business. She hires a​ part-time employee to handle the bookkeeping activities. Which factor
    8·2 answers
  • Which of the following is NOT one of the characteristics of reward and incentive systems? They represent an effective control me
    11·1 answer
  • olga fjord sells computers. she earns a 4.5% commission on sales. how much must she sell in order to earn $9000
    5·1 answer
  • Cheyenne Corporation purchased 420 shares of Sherman Inc. common stock for $12,900 (Cheyenne does not have significant influence
    7·1 answer
  • Based on Roberts and Schlenker​ (forthcoming), the corn demand elasticity is ε =0.3​, and the supply elasticity is eη= 0.15. Acc
    15·1 answer
  • Alejandra is Calculating the nondurable goods value for 2017. She is calculating the value by using the quantity of each final n
    10·1 answer
  • The information below pertains to Barkley Company for 2015.
    7·1 answer
  • Which of the following conditions is characteristic of a monopolistically competitive firm in both the short-run and the long ru
    14·1 answer
  • When does the company go in loss​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!