Reposting again since no one answered.

Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli

Delvig [45]

Answer:

10.5%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

where,

Risk free rate of return = 7%

Market rate of return = 14%

And, the beta is 0.5

So the expected return is

= 7% + 0.5 × (14% - 7%)

= 7% + 0.5 × 7%

= 7% + 3.5%

= 10.5%

4 0

3 years ago

acuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, the

romanna [79]

Answer:

For complete understanding lets first make EPU (Equivalent Production Unit)

Direct Material Conversion

Units completed &transferred out 6,800 6,800

Closing WIP 500 100(500*20%)

Total units 7,300 6,900

Closing WIP units = Opening WIP +During the year - units completed

= 700 + 6,600 - 6,800

=500 units

On the basis of weighted average method following will be cost per unit:

Total Direct material cost/unit = (70,000 + 633,600)/7,300 = 96.3835

Total conversion cost/unit =(4,410+53,520+80,280(53,520*150%))/6,900=20.0304

Therefore, following would be the entries

WIP 767,400

Material 633,600

Conversion 133.800 (53,520+80,280)

Finished goods 791,615 (96.3838+20.0304)*6,800

WIP 791,615

Working for closing unit

Material (500*96.3835) = 48,191

Conversion (500*20%*20.0304) = 2003.043

3 0

3 years ago

Business behavior is derived in large part from the basic cultural environment in which the business operates and, as such, is s

solong [7]

Answer:

TRUE

Explanation:

The influence of cultural on business behavior is broadly encompassing. Cultural impacts ranges from understanding employee behavior and employees management methodologies; i.e. how best to manage employees based on their values and priorities. It also impacts the functional areas of marketing and distribution: what people appreciate and the peculiarities of their environment. It also greatly impact and is a strong determinant factor of success when a company is taking a decision on how best to enter a new market.

When business ignore cultural factors they are guilty of ethnocentrism and could be orchestrating business failure.

7 0

3 years ago

What might you send to people who buy a house with no water?

g100num [7]

It is a well-known fact that water is a basic need of a human being in order to survived. Generally, a person is known to survive for only 3 days without water. Thus, the best thing that I would send to a person who bought a house with no water is any amount of water which will allow them to survive until they procure their own supply.

4 0

3 years ago

Which of the following is NOT a federal income tax deduction?

11Alexandr11 [23.1K]

Answer: a)

Explanation: All the others are deductible, whilst excise taxes are only deductible as a business expense.

8 0

3 years ago