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Sergio [31]
3 years ago
13

Money ​'M​' and nonmonetary assets ​'NM​' are the only assets available in financial markets.

Business
1 answer:
maksim [4K]3 years ago
3 0

Answer:

Explpanation:

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Investors expect the market rate of return this year to be 15.00%. The expected rate of return on a stock with a beta of 1.3 is
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Answer:

Expectation of rate of return on the stock is  16.64%

Explanation:

Ke=Rf+beta(Mrp-Rf)

Rf is unknown

Mrp is 15%

Ke is 19.5%

beta is 1.3

19.5%=Rf+1.3(15%-Rf)

19.5%=Rf+19.5%-1.3Rf

19-5%-19.5%=Rf-1.3Rf

0%=-0.3Rf

Rf=0%/-0.3

Rf=0%

By substituting the value of Rf in the original formula ,we can now calculate Ke when Mrp is 12.80%,beta is 1.3 Rf is 0%

Ke=0%+1.3(12.80%-0%)

Ke=0%+16.64%+0%

Ke=16.64%

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I think b is the correct answer
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Differentiate among the following.
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How do you find love
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Explanation:

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3 years ago
holton is the manager at a small restaurant. What can he do to ensure the workplace offers a safe environment for employees?
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