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Alenkinab [10]
2 years ago
12

If the expected rate of return on the market portfolio is 12% and T-bills yield 6%, what must be the beta of a stock that invest

ors expect to return 10%?
Business
1 answer:
DENIUS [597]2 years ago
8 0

Answer:

the beta of the stock is 0.67

Explanation:

The computation of the beta of the stock is shown below

As we know that

As per CAPM model

Expected rate of return = risk free rate + beta × (market rate of return - risk free rate)

0.10 = 0.06 + beta × (0.12 - 0.06)

Beta = 0.04 ÷ 0.06

= 0.67

Hence, the beta of the stock is 0.67

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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A decrease in the interest rate due to an increase in the supply of loanable funds is referred to as the __________ effect.
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It's called a inflamtion, when basict when the economy gets really strong ,we have a hard time keeping up with demand and need to make the economy more weaker to balance things out
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3 years ago
In a remote village, a person used five beaver pelts to buy a bag of rice and two beaver pelts to buy a pair of shoes. for what
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The purpose why the person use the money is for medium of exchange.

<h3>What is money?</h3>

Money is a legal tender, approved by the government of a country as a means of exchange. Money is used to pay for services received and also for the purchase of goods.

Characteristics of money are:

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Hence, the purpose why the person use the money is for medium of exchange.

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7 0
2 years ago
You have shared a folder in a windows server that is a part of a domain. You need to assign permissions to users so they can acc
Makovka662 [10]

Answer:

The answer would be

Explanation:

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Share permissions manage access to folders shared over a network; they don’t apply to users who log on locally. Share permissions apply to all files and folders in the share; you cannot granularly control access to subfolders or objects on a share. You can specify the number of users who are allowed to access the shared folder.

There are three types of share permissions: Full Control, Change and Read. You can set each of them to “Deny” or “Allow” to control access to shared folders or drives:

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7 0
3 years ago
A will is the final declaration of how a person desires to have her or his property disposed of after death and must follow exac
Aleksandr-060686 [28]

Answer:

The above statement is<u> true</u>.

Explanation:

As said in above statement , A will is the final declaration of how  person desires to have her or his property disposed of after death and must follow exactly the requirements of state law to be effective. A will is good , as it express your feelings , that to whom you want to give your property after your death . It is always provided to that person you choose.

It protect your children from become homeless after your death. It also protect your property from being contested. A will is only valid if it is having number of years after the persons death.

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8 0
3 years ago
Below are transactions for Wolverine Company during 2021.On December 1, 2021, Wolverine receives $4,000 cash from a company that
Nutka1998 [239]

Answer: Please see explanation column for answers

Explanation:

Journal for December 2021

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Date Account. Debit Credit

Dec 31 Deferred

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Rent Revenue. $2,000

Reason--->The rent is paid for 2 months in advance ie January and December, but since the adjusting entry is for only December, we will divide .$4000 / 2=

$2,000 as Rent revenue earned.

B) To record Insurance expense

Date Account. Debit Credit

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Prepaid insurance $6,600

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Date Account. Debit Credit

Dec 31 Salary

Expense. $3000

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But will be paid next year.

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Date Account. Debit Credit

Dec 31 Interest

Expense. $250

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Date Account. Debit Credit

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Expense. $3,900

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1000 +3400 -500=$3,900

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