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almond37 [142]
3 years ago
6

You own a stock that has an expected return of 15.72 percent and a beta of 1.33. The U.S. Treasury bill is yielding 3.82 percent

and the inflation rate is 2.95 percent. What is the expected rate of return on the market
Business
1 answer:
ryzh [129]3 years ago
4 0

Answer: expected rate of return on the market=12.77%

Explanation:

Given that

Expected return =15.72 percent

beta =1.33

Risk free rate=3.82 percent

According to the CAPM FORMULA,

Expected return = Risk free rate+ Beta( expected rate of return on market - Risk free rate

15.72% = 3.82 % + 1.33 ( Em - 3.82%)

0.1572=0.0382+ 1.33 Em - 0.050806

0.1572- 0.0382+ 0.050806 = 1.33 Em

0.169806=1.33Em

Em = 0.169806/1.33

=0.12767 x 100

12.767 ≈12.77%

expected rate of return on the market=12.77%

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The contentions that (1) many of the same standards of what's ethical and what's unethical resonate with peoples of most societi
Sphinxa [80]

Answer: (B) The school of ethical universalism

Explanation:

  The ethical universalism is on of the type of ethical based concept in which their is one of the common moral agreement about the right and the wrong action on the basis of the given behavior across the various types of countries.  

 The importance of the ethical universalism is to provide the justice of equal right among all the people in the society and each person are treated in equal manner.

 According to the given question, the school of ethical universalism is one of the common ethical standards which is used to judge the different types of cultural circumstances and the variety of markets. Therefore, The given cultural circumstances is basically defining the beliefs of the ethical universalism.  

Therefore, Option (B) is correct answer.

3 0
4 years ago
Charles has decided to open a​ lawn-mowing company. To do​ so, he purchases mowing equipment for ​$​, buys gasoline ​($ in gas i
Masja [62]

Answer: $8,600

Explanation:

Implicit cost is also known as the opportunity cost which means that it is the benefit of the next best alternative that was foregone when the current decision was made.

The implicit cost here is therefore:

The $8,000 that Charles could have been making as a lifeguard.

The interest per year he could have been earning on the $5,000 he used to buy mowing equipment.

The depreciation on the mowing equipment because depreciation is not an explicit cost but an implicit one.

= 8,000 + (2% * 5,000) + (10% * 5,000)

= 8,000 + 100 + 500

= $8,600

6 0
3 years ago
Due to the impact that sudden events could have in the value of bonds, event risk covenants, or provisions, are included in the
Natalka [10]

Answer:

A puttable bond.

Explanation:

According to the corporate finance institute, "A puttable bond (put bond or retractable bond) is a type of bond that provides the holder of a bond (investor) the right, but not the obligation, to force the issuer to redeem the bond before its maturity date.   Puttable bonds are directly opposite to callable bonds."

A puttable bond (put bond, putable or retractable bond) has an embedded put option, giving the bondholder the right, but not the obligation, to demand early repayment of the principal, with the put option exercisable on one or more specified dates.

It is a kind of protection offered to investors so that they could "turn in their bonds to the issuer and get the value equal to the par value."

4 0
3 years ago
The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ______
Whitepunk [10]

Answer:

Market Segmentation

Explanation:

Market Segmentation is an efficient tool used in catering for the wants,needs,etc. for buyers classified under sub-group (age,income,behavior)

7 0
3 years ago
Wriston Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be
ch4aika [34]

Answer:

$2,100

Explanation:

Cash Available = Opening Balance + Receipts - Disbursements - Desired Balance

                          = $15,000 +$89,600  - $72,500 - $30,000

                          = $2,100

Therefore,

The excess  of cash available over disbursements for the month would be  $2,100

7 0
3 years ago
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