Asset W has an expected return of 13.75 percent and a beta of 1.4. If the risk-free rate is 4.65 percent, complete the following
1 answer:
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Answer:
After the discount, the customer will pay only 91.4% of the initial price.
Step-by-step explanation:
We have that the price of the current retailer, in dollars, is:
3.50
After the discount, the new price, in dollars, is:
3.20
We want to know what percentage of the original price is the final price.
To find out, we must divide the final price between the initial price and then multiply the result by 100%
So:
*100% = 0.914. * 100% = 91.4%
After the discount, the customer will pay only 91.4% of the initial price.
The discount percentage you are going to pay is 100% -91.4% = 8.6% of the initial price