The security market line (SML) can be regarded as a line that is drawn on a chart which represent the capital asset pricing model. And it allows to know the expected of security which can be attributed to the function of non-diversifiable risk as well as systematic

.It should be noted that The security market line is a positively sloped straight line that displays the relationship between expected return and beta

5 0

3 years ago

Significant change in the age structure of a population is one example of the impact of the firm's ________.

Margarita [4]

Managing the marketing function should begin with a thorough situation analysis of the firm's internal and external environments, including company strengths, weaknesses, opportunities, and <span>threats.

Hope this answers the question. Have a nice day.</span>

8 0

3 years ago

The Finnish prefer to maintain time-honored traditions and norms and view change with suspicion. Which of Hofstede’s cultural di

NeTakaya

I think it’s an Individualist society

Finland, with a score of 63 is an Individualist society. This means there is a high preference for a loosely-knit social framework in which individuals are expected to take care of themselves and their immediate families only.

8 0

1 year ago

Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market du

anzhelika [568]

Answer:

cost of capital 16%

Explanation:

SML formula:

$Ke= r_f + \beta (r_m-r_f)\\\\Where:\\r_f =$ risk free rate\\r_m= $ market rate\\\beta =non-diversifiable \:risk$

r_f = 3%

β = 1.3

r_m = 13%

0.03 + 1.3(0.13-0.03)

firm's required return = .16 = 16%

4 0

3 years ago