So let's set up an equation:
x-.4x=3000
, where x is the original price of the stock (which is what you want to find)
we subtract .4x since the .4x is denoting that 40% of the original price was taken away from the original value (x) which then equals 3000
So,
.6x=3000
x=3000/.6
x=5000
It is a because if you think about it, you would budget for your future.
Answer:
a. The return predicted by CAPM for a portfolio with a beta of 1.4 is 11.88%
b. The alpha of portfolio A is -3.68%
Explanation:
The formula for computing the return by Capital Assets Pricing Method (CAPM) model.
Expected return = Risk Free rate + (Beta × Market Risk Premium)
where,
Market risk premium = market return - risk free rate
Now, putting the values in the above equation
a. Expected return = 0.06 + 1.4 × (0.102 - 0.06)
= 0.06 + 1.4 × 0.042
= 0.06 + 0.0588
= 0.1188
= 11.88 %
Thus, the return predicted by CAPM for a portfolio with a beta of 1.4 is 11.88%.
b. The alpha should be = Portfolio expected return - expected return
= 8.20 - 11.88 %
= -3.68%
Thus, the alpha of portfolio A is -3.68%
Answer:
Answer is Approach.
Explanation:
The Approach is a step involved in selling when the salesperson calls on the person first time. The objective of this step is to start a relationship and to give an impression of professionalism and also creating a good rapport.
Answer:
ROE 2016 = 34.375%
Explanation:
ROE or return on equity is a measure of the profitability of the business. It is calculated as a relation of profitability to the equity.
The Dupont equation is an expanded version of calculating the ROE. It is calculated using the Net Profit Margin, the Total assets turnover and the equity multiplier.
The formula for calculating ROE under this method,
ROE = Net Income / Sales * Sales / Total Assets * Total Assets / Equity
ROE (2016) = 11000 / 100000 * 100000 / 125000 * 125000 / 32000
ROE (2016) = 0.34375 or 34.375%
