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Nady [450]
2 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]2 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%

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A current loan balance is $118,000 on a 30-year loan at 7% interest, with a monthly payment of $831.63 for principal and interes
shusha [124]

Answer:

$143.30

Explanation:

In order to determine the principal reduction payment, the monthly interest will need to be calculated. The interest will then be deducted from the total monthly payment to compute the principal reduction payment:

Annual Interest           = $118,000 X 7/100

                                   = $8,260

Monthly interest         = $8,260/12

                                   = $688.33

Principal reduction    =  $831.63 - $688.33

                                   = $143.30

6 0
3 years ago
In this career, you consult with various companies about the well-being of their employees, emissions standards, and waste dispo
aksik [14]

Answer:

A. waste management

Explanation:

option A is the correct answer

Mark me as Brainliest

5 0
2 years ago
Read 2 more answers
Five thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The ent
Artist 52 [7]

Answer:

d) credit to Paid-in Capital from Treasury Stock for $30,000

Explanation:

The entry for profit in sale of treasury stock is as computed below

Account Details                               Debit      Credit

Cash (5000*20)                              $100,000

     To treasury stock (5000*14)                      $70,000

     To Additional paid in capital (5000*6)      $30,000

6 0
3 years ago
If Alex deposits $1,000 from her paycheck into her checking account and, at the same time, increases her credit card balance by
Marina86 [1]

Answer:

option (A) -$500; decreases by $500

Explanation:

Data provided in the question:

Amount deposited = $1,000

Increase in credit card balance = $1,500

Now,

Deposit adds to assets whereas increase in credit card balances adds to liabilities

Therefore,

Savings = Deposits - Increase in credit card balances

= $1,000 - $1,500

= - $500

Here,

negative sign depicts the decrease in wealth

Hence,

The correct answer is option (A) -$500; decreases by $500

8 0
2 years ago
Future Corporation has a single product; the product selling price is $100 and variable costs are $60. The company’s fixed expen
Thepotemich [5.8K]

Answer:

$25,000

Explanation:

The computation of the  break-even point in sales dollars is shown below:

Break even point = (Fixed expenses) ÷ (Profit volume Ratio)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $100 - $60

= $40

And, Profit volume ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

So, the Profit volume ratio = ($40) ÷ ($100) × 100 = 40%

And, the fixed expenses is $10,000

Now put these values to the above formula  

So, the value would equal to  

= ($10,000) ÷ (40%)  

= $25,000

5 0
3 years ago
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