Answer: Risk free rate = 1.9%
Explanation:
The Capital Asset Pricing Model allows for the calculation of the required return using the market return, beta and risk free rate.
Required return = Risk free rate + Beta * ( Market return - Risk free rate)
First find the market rate. Stock Y is uniquely positioned to help with that:
12.4% = Risk free rate + 1.0 * (Market return - Risk free rate)
12.4% = rf + Market return - rf
Market return = 12.4%
Apply this to the formula using Stock Z:
8.2% = rf + 0.6 * (12.4% - rf)
8.2% = rf + 7.44% - 0.6rf
rf - 0.6rf = 8.2% - 7.44%
0.4rf = 0.76%
rf = 0.76% / 0.4
Risk free rate = 1.9%
The problem 3 + 6 = 9<span> demonstrates the closure property of real number addition.</span>
Observe that the addends and the sum are real numbers.
The closure property of real number addition states that when we add real numbers to other real numbers the result is also real.
<span>In the example above, 3, 6, and 9 are real numbers </span>
Answer: Yea
Explanation:
You can be in love at the same time with two different people and the explanation is that you like two different types
