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Digiron [165]
3 years ago
9

Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the ex

pected rate of return required by the market for a portfolio with a beta of 1 is 14%. According to the capital asset pricing model: a. What is the expected rate of return on the market portfolio
Business
1 answer:
Natalka [10]3 years ago
7 0

Answer:

The expected rate of return on the market portfolio is 14%.

Explanation:

The expected rate of return on the market portfolio can be calculated using the following capital asset pricing model (CAPM) formula:

Er = Rf + B[E(Rm) - Rf] ...................... (1)

Where:

Er = Expected rate of return on the market portfolio = ?

Rf = Risk-free rate = 5%

B = Beta = 1

E(Rm) = Market expected rate of return = 14%

Substituting the values into equation (1), we have:

Er = 5 + 1[14 - 5]

Er = 5 + 1[9]

Er = 5 + 9

Er = 14%

Therefore, the expected rate of return on the market portfolio is 14%.

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Over the past century, real gdp per person in the u. s. has grown about _____ percent per year, which means it doubles about eve
Nadusha1986 [10]

Over the past century, real GDP per person in u. s. has grown about <u>2</u> percent per year, which means it doubles about every <u>35</u> years.

GDP measures the monetary value of final goods and services—that is, the ones that might be sold with the aid of the final consumer—produced in a country in a given time frame (say 1 / 4 or 12 months). It counts all the output generated inside the borders of a country.

Gross home product is the economic degree of the marketplace price of all the final items and services produced in a selected term by using nations. because of its complicated and subjective nature, this degree is regularly revised before being taken into consideration as a dependable indicator.

GDP may be calculated by using adding up all of the cash spent by using purchasers, businesses, and the authorities in a given length. it could additionally be calculated by including up all of the money obtained by way of all the contributors inside the financial system. In either case, the range is an estimate of "nominal GDP."

Learn more about GDP here brainly.com/question/8342414

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6 0
2 years ago
The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have different dividend policies
julia-pushkina [17]

Answer:

10.67%

Explanation:

Gecko Company

Gecko = Expected Earnings growth rate = 8% annually

As there are no Capital gains tax, thus after Tax returns = Pretax returns

= 8%

Expected Dividend yield of Gordon = 5%

After tax returns = 5(1-.25)

=5(0.75)

= 3.75%

Assuming the pay out ratio = 100%

Gordon’s required pretax return = 8/ (1-.25)

=8/0.75

= 10.67%

At pretax return of 10.67% on Gordon the after tax returns on both the stocks are equal.

5 0
3 years ago
If Ming wants a tertiary color, she should combine
Dimas [21]

red and orange because tertiary colors are combinations with primary and secondary colours.




4 0
3 years ago
Read 2 more answers
Union Company reported the following information about the production and sale of its only product during the first month of ope
AleksAgata [21]

Answer:

C) $200.00

Explanation:

Absorption Product Cost = Direct Labor + Direct Materials + Variable Overheads + Fixed Overheads

Thus, we need to Calculate the Total Cost of Goods Manufactured as follows :

Direct materials used                        $160,000

Direct labor                                        $100,000

Variable factory overhead                 $60,000

Fixed factory overhead                      $80,000

Total Cost of Goods Manufactured $400,000

Then Calculate the product cost per unit

Product cost per unit = Total Cost / Total Production

                                   =  $400,000 / ($315,000/$225.00 + 600)

                                   =   $400,000 / 2,000

                                   =   $200.00

Note : Total Production = Units Sold <em>plus</em> Ending Finished Goods Inventory

3 0
3 years ago
Tony is most nervous about doing a good job delivering the information that he has, so his concerns relate to the
Leviafan [203]

Answer:

A. Message element of the communication model

Explanation:

The communication model basically consists of four factors namely; the sender, the message, the receiver, and the channel. The sender in this context is Tony. Since he is nervous about delivering the information that he has, his concerns relate to the message element in the communication model.

The information is the message Tony wants to pass. So his nervousness is about delivering the message well.

3 0
2 years ago
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