g Stock A has a beta of 1.5. Stock B has a beta of 1.2 and an expected return of 12 percent. If the risk-free rate is 2 percent and both stocks have equal reward-to-risk ratios, what is the expected return on stock A

Answers

Answer 1

Answer:

14.5%

Explanation:

The computation of the expected return on stock A is shown below:

Given that

The expected return of stock b = 12%

beta = 1.2

Now

risk free rate = 2% market risk premium

So as per CAPM, the expected return = risk free rate + beta × market risk premium

0.12 = 0.02 + 1.2 × market risk premium

1.2 × market risk premium = 0.10

So,

market risk premium is

= 0.10 ÷ 1.2

= 0.0833 or 8.33%

Since they have equal risk reward so the market risk premium would be same for stock A

Now

The expected return of stock A is

=  2% + (1.5 × 8.33)

= 14.5%


Related Questions

The argument that industries should be temporarily protected by tariffs or quotas to allow firms to develop a competitive product is called the:_________
a) antidumping argument.
b) competitive relief argument.
c) countervailing duty argument.
d) infant industry argument.

Answers

Answer: infant industry argument

Explanation:

The infant industry argument simply means that the new industries in a particular economy should be protected at all cost from the multinationals or already developed foreign firms so that they themselves can grow and that the foreign firms will not hinder their progress and growth.

This usually applies to small and newly established firms. One of the main reason for taxation is to help protect such industries from competition thqt can hinder them.

BUSN 278 WEEK 6 LAB ASSIGNMENTS

Answers

Answer:

what?

Explanation:

Answer:

278 plus 6

Explanation:

What is approximate debt of the United States right now

Answers

Answer:

$27 trillion.

Explanation:

27 trillion dang that's a lot

A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers is called:__________
a) Just-in-time inventory.
b) Budgeted stock.
c) Continuous inventory.
d) Capital stock.
e) Safety stock.

Answers

Answer:

e) Safety stock.

Explanation:

The term that describes this form of safety-net for companies is called safety stock. Companies tend to have this in order to be able to maintain their business flow as efficiently as possible in case there are unforeseen increases in demand. Otherwise, if demand drastically increases and they do not have this safety stock the company will run out of stock immediately and lose out on sales as they wait for more stock to arrive, which can also cause that stock to sell out immediately due to the backed-up demand, which can lead to the business buying backed up for months.

Suppose, that after a successful career, a worker retired precisely as planned with precisely the amount saved that they intended. Upon retirement, they reduced their consumption and spent much less, living a much more simple life. Is this behavior consistent with the permanent income hypothesis?

Answers

Answer: Yes it is

Explanation:

The Permanent Income Hypothesis posits that human expenditure in the short term is based on the amount of income they expect to get as income over the long term.

If a person for instance, knows that they will receive a pay cut at the end of the year, they will probably spend less today to survive the pay cut.

Same goes for the worker in this scenario. They know that the amount they saved is all they have now and into the future so they are adjusting their expenses to ensure they survive on that saving.

my bunnies Lola (gray and white) and Sylvester (brown)

Answers

Answer:

cute

Explanation:

theyre so cute

Answer:

omg your bunnies are SO cute!

Explanation:

:D

Xtron has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. Xtron would be best described as a(n) ______ organization.

Answers

Answer:

Organic

Explanation:

From the question, we are informed about Xtron who has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. In this case Xtron would be best described as a organic organization.

Organic organizations, which was set up by Tom Burns and G.M. Stalker arround 1950, organic organization can be regarded as organization that is can be embrace flexibility and have the potential to adapt well to changes, they also have

value external knowledge.

Zwick Company bought 25,500 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $202,700 net income for 2021 and declared and paid a cash dividend of $3.00 per share on all 202,500 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:

Answers

Answer:

$76,500

Explanation:

Zwick Company owns 25,500 shares of Handy Corporation, which represents 25,500 / 202,500 = 12.59% of all common stocks. Since Zwick influence over Handy is not significant, all dividends received will be directly considered dividend revenue.

total dividends received = $3 per share x 25,500 shares = $76,500

Robert House believed that a leader cannot move back and forth among the four leadership styles: directive, supportive, achievement-oriented, and participative.
a) True
b) False

Answers

사격. ㅕㅓㄷ 뮤지컬 배우로 셔하고ㅠㅗㅗㅝㅗㅜㅗㅗ후ㅏㅜ

I am trying to convince my dad to let me be Interior Designer. What are some resons for me to become a Interior Designer?

Answers

Answer:

Explanation:

1 You can manage your time according your scheduled projects.

2 You can have a lot of costumers around the world

3 It is a profitable niche if you are skilled.

4 Your brain always gonna be creative and curious.

5. You can travel around the world with your knowledge.

6. If you are a good one, you maybe have a lot of followers in your networks liking your work.

7 And if really is your passion job, you will be happy in your life.

Best regards

Assume that a bank receives a deposit of $1,000 in cash, puts aside $200 as required reserves, and makes a loan of $800, this set of transactions will:______

Answers

Answer: e. increases the money supply by $800

Explanation:

The scenario described in the question is how money is created in an economy. Banks take deposits and loan them out to entities who would then deposit this loan in another bank (for instance) which would then give it out as loans as well.

The process will theoretically continue till it reaches zero. When the bank in the question made a loan of $800 out of the $1,000 therefore, it was increasing the money supply by $800.

What is the general relationship between risk and return?

Answers

read the photo it will tell you

As a corporation, you want to distribute money to shareholders as a dividend. If the dividend is taxed at a rate of 20% and the dividend is $1 per share, how much money will a shareholder of 10,000 shares get after-tax? a) $8,000 b) $8,250 c) $8,400 d) $9,000

Answers

Answer:

a) $8,000

Explanation:

The tax rate is 20% of the dividend. If the dividend is $1 per share, the actual tax per share is 20 percent of $1.

=20/100 x $1

=0.2 x$1

=20cents per share

A shareholder will receive $1- 20 cents as dividends per share

=80 cents or $0.80 per share.

A shareholder with 10,000 shares will get

=10,000 x $.80

=$8,000

Answer:

$8000

Explanation:

If the Federal Reserve held the money supply constant in response, the effect on aggregate demand from the increase in government spending would be:___.

Answers

Answer: Smaller

Explanation:

If the Federal Reserve held the money supply constant in response, the effect on aggregate demand from the increase in government spending would be smaller than if the Fed were committed to maintaining a fixed interest rate.

A rise in Aggregate Demand would lead to more people demanding money to enable them to spend. If the Fed keeps the money supply constant therefore, the increase aggregate demand will be less than if the Fed was committed to maintaining a fixed interest rate.

This is because if the Fed wanted to maintain a fixed rate they would have increased money supply to match money demand which would have led to Aggregate demand increasing more than if they hold the money supply constant.

18)
Whiskey, gin, and vodka are examples of
spirits (3 pts).

Answers

Answer:

Vodka, gin, baijiu, shōchū, soju, tequila, rum, whisky, brandy and singani are examples of distilled drinks. Beer, wine, cider, sake and huangjiu are examples of fermented drinks.

Explanation:

the median of four numbers is 63.the three of the numbers are 60,62 and 92 what is the missing number ​

Answers

Answer: 64

Explanation:

To find the median of a number, we have to arrange the numbers that are given in either ascending or descending order.

In this case there are 4 numbers, let the fourth number be x, therefore the numbers will be:

60, 62, x and 92.

Since they are four numbers, the median will be the addition of the 2nd and 3rd number and then divided by 2. This will be:

(62 + x) / 2 = 63

62 + x = 126

x = 126 - 62

x = 64

The missing number is 64

Because price and quantity supplied are directly​ related, we would expect the sign of the price elasticity of supply to be:_________

Answers

Answer:

Positive

Explanation:

Price elasticity is the measure to assess the responsiveness of the supply of a good or service after changing the price of the good or service.

According to basic principles of economics, the price and supply of good or services are directly proportional, it means that if the price increases the supply of good increases and vice versa. The sign of the price elasticity will be positive because they are directly related.

Form example

At Price $5 supply is 200 units

At price $6 supply 250 units

Calculate the change in price and change in supply as well.

Cange in price = ($6 - $5) / 5 = 0.2 = 20%

Cange in supply = 250 units - 200 units = 50 units / 200 unit = 0.25 = 25%

Price elasticity of supply = Change in supply / Change in price

Price elasticity of supply = 25% / 20%

Price elasticity of supply = 1.25

Hence, the sign is positive

four activities or services that make trade easy ​

Answers

Answer:

The activities are:

1. Transport

In the cutting edge times there is a tremendous distance between places of creation and the places of utilization. This trouble is eliminated by a significant guide to exchange known as Transport.Transport makes place utility.

2. Communication

Communication implies sending or trade of data starting with one individual then onto the next.

Communication can be oral or recorded as a hard copy. It is important to impart data starting with one then onto the next to finish and settle the terms of deals, for example, costs of products, markdown permitted, the office of credit, and so forth

3. Banking

Banking tackles the issue of money. Finance managers get cash and furthermore pays cash in huge sums. It is unsafe to convey a lot of money starting with one spot then onto the next. Here comes Banking as an answer. Banking and monetary organizations take care of the issue of installment and encourage a smooth trade among purchaser and dealer. The finance managers may likewise require present moment and long haul reserves. Banks give such account to money managers.

4. Advertising

Advertising fills the information hole and it unravels the trouble of data. Trade of merchandise and ventures conceivable just if makers can carry the items to the customers. Advertising and exposure are significant media of mass correspondence. Advertising encourages buyers to think about the different brands fabricated by a few makers. The media used to publicize items are Radio, Papers, Magazines, television, the Web, Bulletin, and so on

Explanation:

Trade of products includes a few challenges, which are eliminated by helpers or strengthening underpins known as Aids to Trade.

Here, guides to exchange alludes to every one of those elaborate exercises, which straightforwardly or in a roundabout way encourages smooth trade of merchandise and enterprises.

How do i become famous todey?

Answers

Start a singing career

Answer:

Tik Tok

..............

Your salary is 120,000 per year. Your paycheck is cut monthly. You will receive this amount for the next 30 years. Assume that APR is 12%, what is the present value of your life time income

Answers

Answer:

$972,183.30

Explanation:

your monthly salary is $120,000 / 12 = $10,000

you will work for 30 years or 360 months

APR = 12%, so monthly discount rate = 12% / 12 = 1%

Present value = $10,000 x annuity factor

PV annuity factor, 1%, 360 periods = 97.21833

present value = $10,000 x 97.21833 = $972,183.30

Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If invested capital amounted to $6,000,000, the firm's ROI was:_________
A. 13.33%.
B. 83.33%.
C. 120.00%.
D. 750.00%.

Answers

Answer:

A,. 13.33%.

Explanation:

Return on Investment (ROI) which gives the efficiency of a particular investment

We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000

We can calculate net income by substracing equal sales revenue from operating expenses

net income can be calculated as = ($5000000-$420000)

= $800000

ROI can be calculated as

net income/Capital investment

$800000/$6000000

=. 13.33%.

When all the terms of a contract are specifically set forth, the resulting
contract is a(n)
contract.
O A. express
B. written
C. oral
w
O D. transferable

Answers

I think the answer is d

Answer:

Its A. Express

Explanation:

a p e x

A new product, an automated crepe maker, is being introduced at Miyake Corporation. At a selling price of $52 per unit, management projects sales of 38,000 units. Launching the crepe maker as a new product would require an investment of $228,000. The desired return on investment is 20%. The target cost per crepe maker is closest to:___________.
Noreen rechecks 2017-04-04
a) $66.61
b) $62.63
c) $54.20
d) $50.80

Answers

Answer:

d) $50.80

Explanation:

The computation of the target cost per crepe maker is as follows:

But before that

Return per unit is

= ($228,000 × 20%) ÷ 38,000  units

= $1.20

Now  

The target cost per crepe maker is

= $52 - $1.20

= $50.80

hence, the target cost per crepe maker is $50.80

Therefore the correct option is d.

And all the other options are incorrect

brainstorming solicits the help of multiple people to formulate concepts and identify ways to bring them to market. true or false​

Answers

Answer:

a.

Explanation:

hahshahaha joke lang

The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equity that has a cost of 15 percent is:_______.

Answers

Answer:

12.75 %

Explanation:

Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.

Cost of Capital = E/V × Ke + D/V × Kd

Where,

E/V = Market Weight of Equity

      = 0.55

Ke = Cost of Equity

    = 15%

D/E = Market Weight of Debt

      = 0.45

Kd = Cost of Debt

     = 10%

Therefore,

Cost of Capital = 0.55 × 15% +  0.45 × 10%

                         = 12.75 %

You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,440 pounds and the pound is worth $1.61.
a. 16.7%.
b. 20.0%.
c. 12.5%.
d. n/a.

Answers

Answer:

d. n/a

Explanation:

Calculation for Your total return based on U.S. dollars

Total return=(2,440 pounds*$1.61)- (2,340 pounds*$1.52)/ (2,340 pounds*$1.52)

Total return=$3,928.4-$3,556.8/$3,556.8

Total return=$371.60/$3,556.8

Total return=0.1045*100

Total return=10.45%

Therefore Your total return based on U.S. dollars was 10.45%

The average duration of unemployment is _________. Multiple Choice both a coincidental indicator and a lagging indicator a lagging economic indicator a coincidental economic indicator a leading economic indicator

Answers

Answer:

lagging economic indicator

Explanation:

The average amount of time it takes for an unemployed person to find a new job is a scenario of lagging economic indicator, the Employment rate is usually one of the last things work in in an economy that is about or entering a period of expansion. Sackings or Layoffs of staff are one of the last resorts for companies when the economy turns down.

Another way is due to fact that businesses wait until companiestokk lay off, and wait until recoveries look secure to rehire, this part is necessary as it lags the cycle on both the way down and the way up

Your portfolio is 310 shares of Callahan, Inc. The stock currently sells for $101 per share. The company has announced a dividend of $3.20 per share with an ex-dividend date of April 19.
Required:
Assuming no taxes, what is your portfolio value as of April 19?
(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Portfolio value $

Answers

Answer:

$31,240

Explanation:

Calculation for what is your portfolio value as of April 19

Using this formula

Portfolio value= Stock value + Cash

Let plug in the formula

Portfolio value = [(310 shares× ($101 -3.20))+ (310 shares × $3.20) ]

Portfolio value = [(310*97.80)+922)]

Portfolio value=$30,318+$922

Portfolio value=$31,240

Therefore your portfolio value as of April 19 will be $31,240

URGENT!!!!!!!!!!!!!!!1
Okay, I was listening to music while in my MEET and my teacher called on me about 5 times of course I didn't answer because I was singing and listening to the music. So, she unmuted me. I think you guessed right I got in big trouble. So, how do I make it up to her? I'm scared she's gonna tell my mother and that's the worst thing EVER! Cause I'll get grounded! I can't get grounded Please Help Please!!!

Answers

Answer:

ask her to please forgive you, and maybe ask for extra work to make up what was being done while you were singing

Explanation:

     Well, first of all, I think that might be a lesson. Not saying that listening to music while doing homework is a bad thing I listen to music while doing homework, but while being in class might be a bad idea and now you have an idea of why. Maybe ask if there is an extra assignment that could make up for it, maybe you could offer to help her out with something, just maybe offer a helping hand and show that you're a good student.

Hassock Corp. produces woven wall hangings. It takes 3 hours of direct labor to produce a single wall hanging. Hassock standard labor cost is $13 per hour. During August, Hassock produced 9,000 units and used 27,160 hours of direct labor at a total cost of $323,220. What is Hassocks labor efficiency variance for August?

Answers

Answer:

Direct labor time (efficiency) variance= $2,080 unfavorable

Explanation:

Giving the following information:

Standard= 3 hours of direct labor per unit

The standard labor cost is $13 per hour.

During August, Hassock produced 9,000 units and used 27,160 hours

To calculate the direct labor efficiency variance, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (3*9,000 - 27,160)*13

Direct labor time (efficiency) variance= $2,080 unfavorable

Other Questions
Associate the items in column A to the items in column B.4:12 AM?Il est quatre heures vingt.4:20 A.M.?Il est quatre heures etquart.4:15 A.M.?Il est quatre heures etdemie.4:30 A.M.?Il est quatre heures douze. Its Question 15. I need help! help me with this, only 30 min left 2500 + 110h < 3000 can you pls answer this Select the correct answer.What does Mark Twain satirize in this excerpt from "The 1,000,000 Bank-Note"?It was a lovely dinner-party of fourteen. The Duke and Duchess of Shoreditch, and their daughter the Lady Anne-Grace-Eleanor-Celeste-and-so-forth-and-so-forth-de-Bohun, the Earl and Countess of Newgate, Viscount Cheapside, Lord and Lady Blatherskite, some untitledpeople of both sexes, the minister and his wife and daughter, and his daughter's visiting friend, an English girl of twenty-two, namedPortia Langham, whom I fell in love with in two minutes, and she with me,I could see it without glasses. There was still another guest, anAmerican-but I am a little ahead of my story.O A. the long list of names required to address certain noblesOB. the English custom of holding frequent balls and dinner partiesOc. the lack of importance given to Americans by the EnglishODthe eccentric attitudes of the British upper classMo School districts should consider changing to a four-day school week. The main benefit will be cost savings. If school buildings are open only four days a week, electricity and water bills will be reduced. Schools will also save on bus costs and cafeteria expenses. As a result, schools that make the change will have extra cash to spend on programs that benefit students, Passage 2: Families would benefit greatly from a four-day school week. In today's society, many family calendars are full every moment of the day. With a shorter school week, families would be able to spend quality time together. In addition, each family member would have more time to rest and recharge for the upcoming school week. Both of these benefits will lead to healthier families and higher-achieving students, so schools should make the change as soon as possible. PREVIOUS The changing relationship between England and the catholic church A ratio is a comparison of two quantities. For example, the ratio of cows to pigs on a farm could be 1 to 3. For every 1 cow, there are 3 pigs. The ratio of chocolate chips to raisins in a cookie could be 5 to 9. For every 5 chocolate chips in the cookie, there are 9 raisins. Do you notice a repeating phrase in these examples? For every is key ratio language. It tells you how much of one quantity exists in comparison to the other quantity. A ratio consists of just the numbers, not the units. If someone asked the ratio of chocolate chips to raisins in the cookie example, youd say 5 to 9. What criticisms does Lady Catherine makeabout Elizabeth's family You spend $63 on books and movies. You pay $12 per book and $15 per movie. You buy 3 more books than movies. How many of each item do you buy? Community health problems can be addressed through the provision of health education. Justify it What was Paul Revere trying to prevent the British from doing?Astealing the colonists' ammunition and suppliesBpassing the Tea Actsshutting down Boston HarborDattacking the colonists' church 2 3 4 5 6 7 8 9 10 TIME REMAINING01:27:25Read the excerpt below from The Story of an Hour by Kate Chopin and answer the question that follows.She wept at once, with sudden, wild abandonment, in her sisters arms. When the storm of grief had spent itself she went away to her room alone. She would have no one follow her.There stood, facing the open window, a comfortable, roomy armchair. Into this she sank, pressed down by a physical exhaustion that haunted her body and seemed to reach into her soul.She could see in the open square before her house the tops of trees that were all aquiver with the new spring life. The delicious breath of rain was in the air. In the street below a peddler was crying his wares. The notes of a distant song which some one was singing reached her faintly, and countless sparrows were twittering in the eaves.There were patches of blue sky showing here and there through the clouds that had met and piled one above the other in the west facing her window.She sat with her head thrown back upon the cushion of the chair, quite motionless, except when a sob came up into her throat and shook her, as a child who has cried itself to sleep continues to sob in its dreams.She was young, with a fair, calm face, whose lines bespoke repression and even a certain strength. But now there was a dull stare in her eyes, whose gaze was fixed away off yonder on one of those patches of blue sky. It was not a glance of reflection, but rather indicated a suspension of intelligent thought.There was something coming to her and she was waiting for it, fearfully. What was it? She did not know; it was too subtle and elusive to name. But she felt it, creeping out of the sky, reaching toward her through the sounds, the scents, the color that filled the air.Now her bosom rose and fell tumultuously. She was beginning to recognize this thing that was approaching to possess her, and she was striving to beat it back with her willas powerless as her two white slender hands would have been.When she abandoned herself a little whispered word escaped her slightly parted lips. She said it over and over under the breath: Free, free, free! The vacant stare and the look of terror that had followed it went from her eyes. They stayed keen and bright. Her pulses beat fast, and the coursing blood warmed and relaxed every inch of her body.She did not stop to ask if it were or were not a monstrous joy that held her. A clear and exalted perception enabled her to dismiss the suggestion as trivial.What is suggested by the third sentence of paragraph 1?A.The point of view will shift during the passage.B.The chief symbol in the passage is the bedroom.C.The focus of the passage is on external, rather than internal, conflict.D.The setting of the passage is insignificant to the theme.E. The main character has some autonomy. Please help! Very fast. Please be correct! Write 1.33 x 10^6 in standard notation What is the slope if 2y=x Mackenzie has a loyalty card good for a 20% discount at her local hardware store. What would her total in dollars and cents be, after the discount and before tax, if the total cost of all the items she wants to buy is $17.45? Round to the nearest cent. The three-dimensional figure below is a cylinder with a hole in the shape of a rectangular prism going through the center of it. The radius is 10 yards. Find the volume of the solid in cubic yards, rounded to the nearest ten. The lines on the position-time graph shows the velocities of different vehicles. Which line represents a vehicle moving at a constant velocity? A. DB. BC. AD. C Which pair of vectors is orthogonal?u = 3, 2 and v = 2, 1u = 1, 5 and v = 5, 1u = 2, 1 and v = 4, 3u = 2, 3 and v = 3, 1