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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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2. Joseph is an HR professional at a major financial institution. When one of the high-level managers retires, Joseph is asked t
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7 0
3 years ago
Samuel Jenkins made two investments; the first was 13 months ago and the second was two months ago. He just sold both investment
tatiyna

Answer:

short: 11,000 -->  1,320 income tax

long:  11,000 --> zero tax income

Explanation:

The capital gains are clasiffied as long.term gain once they were held for period of time of more than a year during the current holder.

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7 0
4 years ago
Which of the following is a variable cost for a company that makes bread?
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The variable cost for a company that makes bread is : Bread ingredients.

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3 years ago
Alfred, an architect at Abode Inc., uses the term "spatial organization" while communicating to his client. The client is unable
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Answer:

Jargon

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