Answer:
D) Beta .98 expected return .107
Explanation:
In CAPM (Capital Asset Pricing Model), expected return = risk-free rate + Beta * market risk premium = 3.4% + Beta * 7.4%
We try every choice consecutively
A) Beta .87 expected return .096
⇒ expected return = 3.4% + 0.87 * 7.4% = 0.098
A is wrong
B) Beta 1.09 expected return .102
⇒ expected return = 3.4% + 1.09 * 7.4% = 0.1147
B is wrong
C) Beta 1.62 expected return .146
⇒ expected return = 3.4% + 1.62 * 7.4% = 0.154
C is wrong
D) Beta .98 expected return .107
⇒ expected return = 3.4% + 0.98 * 7.4% = 0.107
D is TRUE
E) Beta 1.16 expected return .139
⇒ expected return = 3.4% + 1.16* 7.4% = 0.12
E is wrong
Answer:
Profit = $42,000
Explanation:
Given:
House price = $350,000
Additional price = $5,000
Garage value = $25,000
Selling price = $450,000
Selling cost = $28,000
Total cost of the Assets
Purchase Home $350,000
Add: Additional Purchase $5,000
<u>Add: Purchase of Garage $25,000</u>
Total cost of the Assets $380,000
Profit = Sale Price - (Cost Price + Selling Cost)
Profit = $450,000 - ( $380,000 + $28,000)
Profit = $450,000 - $408,000
Profit = $42,000
Being lazy eating junk food
T<span>he answer for this question would depend on the status of Juliet. If Juliet was an employee, this is an example of </span>pilferage.<span> Pilferage is the stealing of small sums of money or inexpensive items. But, if Juliet was an owner of the business, this may constitute a fraud since she is enjoying the benefits of the supplies for herself and not for the business. Though, she may regard this transactions as withdrawal for her part provided that she is the owner.</span>