Answer: Risk free rate = 1.9%
Explanation:
The Capital Asset Pricing Model allows for the calculation of the required return using the market return, beta and risk free rate.
Required return = Risk free rate + Beta * ( Market return - Risk free rate)
First find the market rate. Stock Y is uniquely positioned to help with that:
12.4% = Risk free rate + 1.0 * (Market return - Risk free rate)
12.4% = rf + Market return - rf
Market return = 12.4%
Apply this to the formula using Stock Z:
8.2% = rf + 0.6 * (12.4% - rf)
8.2% = rf + 7.44% - 0.6rf
rf - 0.6rf = 8.2% - 7.44%
0.4rf = 0.76%
rf = 0.76% / 0.4
Risk free rate = 1.9%
Answer:
a
Explanation:
high level of lead in drinking water could lead to neurological
<u>Answer:</u>
Option D. It's important to recognise children when they follow the rules because not doing so can cause them to act out to receive adult attention.
<u>Explanation:</u>
Every human being regardless of his age, expects validation and acceptance from the surrounding in which he lives, children aren’t an exception from the list.
It is most important to recognise the actions of the children when they follow the rules as doing so would encourage them to do the same action when they encounter the same situation in the future and helps in increasing the child’s self image, self esteem and emerging as a self regulating child.
In the case of not recognising the actions would lead to a situation where the children would start breaking the rules, just in order to grab your attention and this would continue in a cyclic manner if it is not treated effectively by the adults which will eventually lead to behavioural problems.
Hence the right answer is, Option D.
