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:
i have a big explanation that i cant write it here so you should look for someone else if you need a compact one cuz this is brief but it worth it to get points :)
Explanation:
It's basically because people have different ideas and wishes on what to be,they have different opinions on which is better and which isn't the best. Teaching may be people's tea but doctors,engineers,football players,basketball players,why?,even carpenters are people's tea.its not just teaching which is a profession.there are many professions even fashion designers can be some peoples dream and even police officers can be some people's dream it could be anything!
Answer:
Expected Family Contribution
Explanation:
A P E X
