Answer:
A. Stock A should have a higher expected return.
Explanation:
Capital Asset Pricing Model (CAPM) formula is used to calculate expected return of a stock and the formula is as follows;
CAPM; r = risk free rate + beta(Market risk premium)
Since beta is in the CAPM and determines the rate of return, we will use beta to compare these two stocks. The higher the beta, the higher the rate of return. Stock A has a beta of 0.9 which is higher than that of B (0.6). Therefore, stock A's stock return will be higher than that of B but lower than the market return since beta of the market is 1.0.
Answer:
economics a situation in which the market demand for a commodity is greater than its market supply, thus causing its market price to rise.
Explanation:
this is the definition. hope this helps.
The lack of needing it anymore or trends dying.
Answer:
d. $132,000
Explanation:
Sigma Corporation holds the stock of Epsilon Corporation and is subsidiary for the Sigma. The dividend declared by of $100,000 is entirely for the sigma whereas Sigma Corporation also holds 20% of the shares of Intergalactic Corporation. The dividend of $40,000 will be calculated in the dividend amount of Sigma but 20% will be deducted.
$100,000 + $40,000 * 80% = $132,000
Explanation:
Since it is given that
Acquiring value of an vacant lot = $115,000
Sale value of the vacant lot in cash = $298,000
Since the sale value is more than the acquiring value which reflects the increment in the asset for $183,000 due to which the profit is also increased for $183,000 i.e retained earnings
Now the effect is shown below:
1. Assets = Increase = $183,000
2. Liabilities = No change = $0
3. Stockholder equity = Increased = $183,000
