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worty [1.4K]
3 years ago
12

Oriole, Inc., stock has a beta of 1.60. If the expected market return is 17.5 percent and the risk-free rate is 7.0 percent, wha

t does CAPM indicate the appropriate expected return for Oriole stock is
Business
1 answer:
Katen [24]3 years ago
7 0

Answer:

23.8

Explanation:

Oriole stock have a beta of 1.60

The expected market return is 17.5

The risk free rate is 7.0

Therefore the expected return for oriole stock can be calculated as follows

= 7 + 1.60(17.5-7)

= 7+ 1.60(10.5)

= 7 + 16.8

= 23.8

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Explanation:

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3 years ago
Look at the examples, and then determine which type of advantage each one describes.
lara [203]

Answer:

<span> 1) If a producer can provide cable service more cheaply than another producer, it is an</span> absolute advantage.<span>
2) If a  producer can produce salads while giving up fewer opportunities to make sandwiches than another producer, it is a</span> comparative advantage.

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4 0
3 years ago
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An option trader buys 1 ABC April 25 put. A few months later, the trader exercises the option. The trader's net sales proceeds e
Lina20 [59]

Answer:

[C] Strike price minus the premium

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