Which action is the best example of appropriate e-mail use at work?

The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a. Calculate the required rate of retur

defon

Answer:

The required rate of return is r = 0.1475 or 14.75%

Explanation:

The required rate of return is the minimum return that investors demand/expect on a stock based on the systematic risk of the stock as given by the beta. The expected or required rate of return on a stock can be calculated using the CAPM equation.

The equation is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate
rM is the return on market

r = 0.06 + 1.25 * (0.13 - 0.06)

r = 0.1475 or 14.75%

7 0

3 years ago

Question 1

Virty [35]

<span>Which choice is the correct statement about "comprehensive" insurance?
B. Comprehensive insurance provides you coverage for both collision and physical damage.

Question 2
If I make a lot of claims on my insurance, my insurance cost will probably go up. TRUE

Question 3

What are some of the obligations you must fulfill for an insurance policy to be in effect? C. Both A and B.

What is collision insurance? B. Collision insurance is the coverage your insurance company gives you that only covers physical damage to a vehicle. Collision insurance usually has a "deductible" which means that the company will not pay 100% of damages.

All insurance companies charge the same rates for insurance coverage. FALSE

What is an insurance "deductible"?
D. An insurance deductible is what you pay yearly for car insurance if you don't have accidents.

What is an insurance policy?
B. An insurance policy is a document that tells you what you must pay for insurance coverage and what the insurance company is - and is not - covering.

What is the purpose of insurance?
D. Both B and C.

Life insurance can be most valuable in which of these cases?
D. Both B and C.

It is always smart to compare insurance costs between different companies. Insurance agents are usually good people. But remember that the job of insurance agents at most companies is to sell you their insurance policies. Their job is not to tell you that another company has a better and less-expensive policy. True.

What are some of the factors that would influence your insurance costs?
C. The type of car you drive.

In which cases does property insurance normally give you coverage?
D. All of the above.

Some insurance usually has a higher price for younger people because younger people have more accidents.FALSE

Health insurance is designed to cover some or all of your expenses related to accidents and some health issues.TRUE

Which actions will many insurance companies take if you receive a DUI?
C. Both A and B.
</span>

6 0

3 years ago

An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minim

tatyana61 [14]

Answer: c. 3%

Explanation:

The Insurance company guaranteed that the minimum rate that they will pay their policyholders as 3%. Just because the investments are now drawing only 2.5% due to the economic downtown does not absolve them of this agreement.

They must therefore still pay their policy holders the minimum return guaranteed which is 3%.

3 0

3 years ago

Theresa’s Flower Garden has 750 bonds outstanding that are selling for $989 each, 2,500 shares of preferred stock with a market

Sidana [21]

Answer:

weight of preferred stock = 4.63 %

Explanation:

given data

Number of outstanding bonds = 750

selling price = $989 each

preferred stock = 2,500 shares

market price = $47 a share

number of common stock = 30,000

common stock valued = $56 share

solution

we first get here total market value that is express as

total market value = Number of outstanding bonds × selling price per bond + number of preferred stock × market price per share + number of common stock × par value per share ......................1

put here value and we get

total market value = 750 × $989 + 2,500 × $47 + 30,000 × $56

solve it we get

total market value = $2539250

and

here now we get weight of preferred stock that will be

weight of preferred stock = Total value of preferred stock ÷ total market value × 100 .........................2

put here value

weight of preferred stock = ( 2,500 × $47 ) ÷ $2539250 × 100

weight of preferred stock = 4.63 %

7 0

3 years ago

Renewable Resources, Inc., files a suit against Sunrich Utility Company and seeks to examine certain documents in Sunrich’s poss

love history [14]

Answer: a) Information that is relevant to the case.

Explanation:

A legitimate reason for this examination of document is because it's the document that's involved or relevant to the case.

4 0

3 years ago