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
Nady [450]
3 years ago
12

The risk-free rate is 2.4% and the market expected return is 12.1%. What is the expected return of a stock that has a beta of .8

8?
Business
1 answer:
Likurg_2 [28]3 years ago
5 0

Answer:Expected return on stock = 10.64%

Explanation:

According to  CAPM,Capital Asset Pricing Model CAPM,  The expected

return on stock is given as

Er = Rf +β( Mr -  Rf)

which means

Expected = Risk free rate + Beta x (Market rate - Risk free rate)

Therefore,

Expected return on stock = 2.4% + 0.88 x (12.1% - 2.4%)

=2.4% +0.88 (0.118)

=2.4% +0.10384

= 0.1064

10.64%

Expected return on stock = 10.64%

You might be interested in
Someone taking a course in Web design is affecting what factor of production?
Solnce55 [7]

Answer:

Someone taking a course in Web design is affecting human capital.

7 0
3 years ago
Goodman Auto started the year with total assets of $300,000 and total liabilities of $175,000. During the year, the business rec
kow [346]

Answer:

The answer is $ 200,000

Explanation:

The net income reported by Goodman Auto for the year was,$475,000 - $275,000 = $ 200,000.

The net income is difference between revenue earned by the company and expenses incurred in order to earn this revenue. In the problem goodman auto revenue is equal to 475,000 and expense are 275,000. So the difference between 475,000 and 275,000 will be reported as net income.

5 0
3 years ago
Which type of third party plan covers prescriptions for anyone eligible for medicare benefits, including senior citizens?
Citrus2011 [14]
The third party plan that covers prescriptions for those eligible for medicare is usually an insurance plan that has extended health so that after paying a small deductible like $25 then the medicine costs will be reimbursed at the rate of say 80% of their costs.
7 0
3 years ago
Marketing is a subset of advertising.<br><br> True<br> False
andreev551 [17]

Answer:

False

Explanation:

Marketing is not a subset of advertising. In fact it is the opposite, advertising is the subset of marketing.

Advertising is mostly focused on acquiring customers and promoting sales. Generally, advertising is based on formulating campaigns to promote the products and increasing sales. These promotions are carefully planned out and well designed so they reach a target audience with the help of media such as radio, newspaper, television and magazines etc.

4 0
3 years ago
Nonverbal communication is often referred to as body language.<br><br> True<br> False
Paraphin [41]

True!

Why?

Well, non-verbal communication is talking, but without words. It includes of body language, think of sign language, you use your hands. :)

Please award brainliest if I helped you, if not........ oh, well.

Stay happy

4 0
3 years ago
Read 2 more answers
Other questions:
  • Susan has a 401k plan through her job and has accumulated $375,000 in her account. Her company has invested her funts in a high
    9·1 answer
  • Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,500 of dir
    10·1 answer
  • Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll, Tootsie Roll Pops,
    10·1 answer
  • 2. Provide a definition for the following terms:
    15·1 answer
  • The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $8 per unit. Its variable
    14·1 answer
  • On June 1, year 2, Oak Corp. granted stock options to certain key employees as additional compensation. The options were for 1,0
    13·1 answer
  • Suppose the stock of Host Hotels​ &amp; Resorts is currently trading for per share. a. If Host issued a stock​ dividend, what wo
    8·1 answer
  • The product is shown without a decimal point. Where should the decimal point be placed?
    14·1 answer
  • Evaluating debt burden. Ted Phillips has a monthly take-home pay of $1,685; he makes payments of $410 a
    12·1 answer
  • Other things being equal, a ________ supply of workers tends to put ________ pressure on real wages.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!