Question 25
A stock has a beta of 1.5 and an expected return of 16.35%. What is the risk-free rate if the market rate of return is 12.5%?
96

Answers

Answer 1

Answer:

4.8%

Step-by-step explanation:

Given that :

Stock beta (B) = 1.5

Expected return = 16.35% = 0.1635

Maeket rate of return (Rm) = 12.5% = 0.125

Risk-free rate of return (Rf) =?

Using the relation :

Expected rate of return = risk free rate + Beta(market rate - Risk-free rate)

Expected rate of return = Rf + B(Rm - Rf)

Plugging our values :

0.1635 = Rf + 1.5(0.125 - Rf)

Open the bracket

0.1635 = Rf + 0.1875 - 1.5Rf

Collect like terms

0.1635 - 0.1875 = Rf - 1.5Rf

−0.024 = - 0.5Rf

Divide both sides by - 0.5

0.024 / 0.5 = Rf

Rf = 0.048

Rf = 0.048 * 100% = 4.8%


Related Questions

Which fraction is greater than 1/2 and less than 3/4 ?

Answers

Answer:

a. [tex] \frac{2}{3} [/tex]

Step-by-step explanation:

The fraction, [tex] \frac{2}{3} [/tex] is greater than [tex] \frac{1}{2} [/tex] and less than [tex] \frac{3}{4} [/tex].

How do we know this? See below how the fractions are compared together.

First, compare [tex] \frac{2}{3} [/tex] and [tex] \frac{1}{2} [/tex].

Find a common denominator for both fractions:

Common denominator of 2 and 3 would be 6. Therefore, multiply as follows:

[tex] \frac{2 \times 2}{3 \times 2} = \frac{4}{6}[/tex] and

[tex] \frac{1 \times 3}{2 \times 3} = \frac{3}{6} [/tex].

Compare the numerators. Which one is greater?

Form the calculation above:

[tex] \frac{2}{3} = \frac{4}{6} [/tex] has a numerator of 4.

.

[tex] \frac{1}{2} = \frac{3}{6} [/tex] has a numerator of 3.

Since 4 is greater than 3, therefore, the fraction, [tex] \frac{2}{3} [/tex] is greater than [tex] \frac{1}{2} [/tex].

✍️Compare [tex] \frac{2}{3} [/tex] and [tex] \frac{3}{4} [/tex].

Find a common denominator for both fractions

[tex] \frac{2 \times 4}{3 \times 4} = \frac{8}{12} [/tex] and

[tex] \frac{3 \times 3}{4 \times 3} = \frac{9}{12} [/tex]

Comparing their numerator, 8 is less than 9, therefore:

[tex] \frac{2}{3} [/tex] is less than [tex] \frac{3}{4} [/tex].

✔️We can conclude that:

[tex] \frac{2}{3} [/tex] is greater than [tex] \frac{1}{2} [/tex], and less than [tex] \frac{3}{4} [/tex].

Express each ratio as a unit rate. Round to the nearest tenth, if necessary.
100 miles in 2.5 hours
40 miles per hour
100
a. Yo
c.
25 miles per hour
1000
b. 250 miles per hour
d.
25
miles per hour
Please select the best answer from the choices provided
А
B
ОС
D

Answers

Answer:

c

Step-by-step explanation:

Answer:

A. 100 miles divide 2.5 hours = 40 miles per hour

A number line has marks A question mark, negative 2, B question mark, 0, 1, C-2, 3, D question mark, 5, E 6.
What number is represented by point B?

Which point represents the number 2?

Answers

Answer:

What number is represented by point B = -1  

Which point represents the number 2? = C

can someone help me ​

Answers

9514 1404 393

Answer:

  M = 7x² +21

Step-by-step explanation:

Subtract the unwanted terms on the left from both sides.

  (-7x² +6x -16) + M = 6x +5

  M = 6x +5 -(-7x² +6x -16)

  M = 7x² +21 . . . . simplify

What is the exterior angle sum for a regular heptagon

Answers

Answer:

360 degrees

Step-by-step explanation:

The sum of exterior angles of a heptagon is 360 degrees. For regular heptagon, the measure of the interior angle is about 128.57 degrees. The measure of the central angle of a regular heptagon is approximately 51.43 degrees. The number of diagonals in a heptagon is 14.

Step-by-step explanation:

heptagon = 7

(interior angle)

(7-2)×180 = 900

all 7 vertices angle - interior angle

(7×360) - 900 = 1620

12. John borrowed $80 from his sister, Joan. He agreed to pay her back at a rate of $6 per

week. Create a function, P, that gives the amount of money that john still owes Joan after

w weeks.


12 (b) John told Joan that he will have paid her back all of the money, after making

payments for 13 weeks.. Explain why John is incorrect?

Answers

Answer:

P = 80 - 6w

Step-by-step explanation:

Initial amount = $80Payment each week = $6

Required function:

P = 80 - 6w

Time required to pay all money. At this time P = 0

0 = 80 - 6w6w = 80w = 80/6w = 13.33

Since w > 13, John needs 14 weeks

Which is a mathematical statement consisting of a hypothesis and conclusion that has to be proven true?

definition
diagram
postulate
theorem

Answers

The answer to the question provided is theorem.

Answer:

theorem

Step-by-step explanation:

Shown in picture (Edge 2021)

if a dinosaur has a mass of 55g, what is his density

Answers

Answer:

32ounces I think

Step-by-step explanation:

HELP I WILL RATE !!!!!!!

Answers

No picture, nothing to rate here.

the subway train can hold a 792 people on Tuesday 56941 people rode the subway how many trains could 56941 people how many people would be left over ​

Answers

Answer:

56,149 would be left over

Step-by-step explanation:

56,941-792=56,149

Multiplying fraction what is 5/8x6/15

Answers

[tex]\text {Hello! Let's Solve this Problem!}[/tex]

[tex]\text {When multiplying fractions you multiply numerator by numerator and }[/tex] [tex]\text {demoninator by denominator. Simplifying is required when the answer comes}[/tex] [tex]\text {out as fraction that can be simplified. Simplify until it's reduced to the lowest}[/tex] [tex]\text {fraction it ca be.}[/tex]

[tex]\text {\underline{Multiply}}[/tex]

[tex]\text {5*6=30}[/tex]

[tex]\text {8*15=120}[/tex]

[tex]\text {Your Answer Would Be:}[/tex]

[tex]\Huge\boxed {30/120}[/tex]

[tex]\text {Since this is a fraction we can simplify we simplify it by 30}[/tex]

[tex]\text {Q: What does simplify mean?}[/tex]

[tex]\text {A: It means to divide. So if someone says simplify 2/4 that means divide.}[/tex]

[tex]\text {\underline {Divide}}[/tex]

[tex]\text {30/120 divided by 30 =}[/tex]

[tex]\text {Your Simplified Fraction Answer Would Be:}[/tex]

[tex]\Huge\boxed {1/4}[/tex]

[tex]\text {Best of Luck!}[/tex]

[tex] \huge \sf \underline{Solution:-}[/tex]

[tex] \frac{5}{8} \times \frac{6}{15} [/tex]

[tex] = \frac{30}{120} [/tex]

[tex] = \frac{1}{4} [/tex]

Here, we just have to multiply the top numbers and then multiply the bottom numbers. Then we can simplify the fraction if needed.

So, correct answer is ¼.

Hope it helps you :)

I need helppppppp plssss

Answers

9x +4 = 3x+16

6x=12 X=2........

Which statements are true? Select all that apply.
Centigrams are larger than decigrams.
Hectometers are smaller than kilometers.
Dekaliters are larger than kiloliters.
Grams are smaller than dekagrams.
A 2-column table with 7 rows. Column 1 has entries kilo, hecto, deka, unit, deci, centi, milli. Column 2 has entries 1,000, 100, 10, 1, 0.1, 0.01, 0.001.

Answers

Answer:

A and C

Step-by-step explanation:

Answer:

b and c

Step-by-step explanation:

im right

Need help ASAP
Thank you

Answers

Answer:

the second one thxxx for the points

it’s the second one....B!!!

i just dropped my moms vase and it shatterd.

Answers

Answer:

tell your grandma your sorry

Step-by-step explanation:

Answer:

Blame it on your dog :)

Step-by-step explanation:

In an election for school president, the loser received 70% of the winner's votes. If 969 votes were cast, how many did each receive?

Answers

Answer:

The ans would be 291 (however we can round this off to 290 as no can partially vote as 0.1)

Step-by-step explanation:

We can easily find the loser's vote by-

70% of 969= 678.9

now, all we need to do is find the winners vote

we know that the total no. of votes= 969 & we know the no. of votes loser got

so, subtracting the losers vote from 969 would give us the remaining no. of votes (the winner's votes)....so,

969-678.9=290.1

we can round this off to 290

 

Help me out here pleaseeeeeeeeee

Answers

Answer:

Step-by-step explanation:

the second one

Option 2 is the right answer

Megan's room was remodeled. The new area of the room is 175% of the previous area. Only the length of the room changed. The width of the original room is 4m and the length of the original room is 4m. If the new room adds X to the length, what is the new expression for the new area? How many square meters has Megan's room increased? Explain how you solved the new area.

Answers

Answer:

new area = 7m (length) x 4m (width) = 28; an increase of 12 sq meters

Step-by-step explanation:

Original area must have been 16 because both the length and width were 6 meters.

175% of 16 is 12, meaning the length must be increased from 4 to 7 to get 28 when multiplied by a width of 4m

Help pls 10 POINTSSSSS HELP MEEEE

Answers

Answer:2492.1

Step-by-step explanation:2130 times 4.25% times 4 =362.1

explain how to use friendly percents to find 35% of 80

Answers

You first need to change the percent into a decimal then multiply by 80 to get your answer
.35*80=28

6) Choose which postulate proves the triangles congruent.

Answers

Answer:

SAS(Side.Angle.Side

Step-by-step explanation:

since x is mid point of pr and qs so px=xr and x is midpoint of qs so qx=sx,

and two lines intercept so angles made on point x are equal.....hence 2 sides and one angle proved so triangles are equal

The postulate that can be used to prove that triangle QXP and triangle SXR are congruent to each other is: SAS Congruence Theorem,

Recall:

Two triangles are congruent by the Side-Angle-Side Congruence Theorem, if two sides and one included angle of one triangle are congruent to two sides and the corresponding included angle in the other triangle.

Since X is a midpoint of QS and RP, therefore:

[tex]PX \cong RX\\\\QX \cong SX\\[/tex]

Also,

<PXQ = <SXR (vertical angles are congruent)

Thus, triangle QXP and triangle SXR are congruent by SAS.

Therefore, the postulate that can be used to prove that triangle QXP and triangle SXR are congruent to each other is: SAS Congruence Theorem,

Learn more here:

https://brainly.com/question/25126660

PLZZ SOMEONE GIVE ME THE EQUATION!! You have $20 to buy snacks for yourself and 4 friends. If you buy a bag of chips for each person, and still have $13.75 left, how much did you spend on each bag of chips? ​

Answers

Answer:

1.56

Step-by-step explanation:

Answer:

1.25

Step-by-step explanation:

20-13.75 = 6.25

6.25 / 5 = 1.25

Is the answer 6 or 36 need help. The volume of a rectangular prism is 216. It's square base has sides that are 6. What is the height of the rectangular prism?

Answers

36

because you add 36 6 times so 36×6= 216

Answer:

Well, 216 divided by 6 is 36,so...

Step-by-step explanation:


Find the angle of rotation about the center of the square that maps A to C.

Answers

The angle of rotation to map A into C is 180°.

How to find the angle of rotation?

The rotation is around the center of the square. Let's assume that the center coincides with the origin of a coordinate axis.

Then we would have A on the second quadrant and C on the fourth quadrant.

Then we need to apply a rotation of two quadrants, remember that each quadrant has an angle of 90°, then a rotation of two quadrants has an angle of 2*90° = 180°.

The correct option is 180°.

If you want to learn more about rotations:

https://brainly.com/question/4289712

#SPJ1

PLEASE HELP WILL MARK BRAINLEIST

Answers

Answer:

The second one

Step-by-step explanation:

because 1•4=4 and 2•2=4

27
Solve for x.
5x – 5 = 9x + 3
X =

Answers

Answer:

- 2

Step-by-step explanation:

Add 5 From Both Sides

Simplify

Subtract 9x from both sides of the equation

Simplify

Divide both sides of the equation by the same term

Simplify

Solution

Answer:

[tex]x=-2[/tex]

Step-by-step explanation:

Step-by-step on how to solve it is in the picture below ↓

Hope this helps! :)

Write an equation of the line that passes through each pair of points (- 2, - 3), (4, 5)

Answers

Answer:

y= 4/3x -1/3

Step-by-step explanation:

Find slope: y2-y1/x2-x1 = 5-(-3)/4-(-2) = 8/6 = 4/3

Use point slope to find the equation:

y - y1 = m ( x - x1 )

y - (-3) = 4/3 ( x - (-2))

y = 4/3x + 8/3 + (-3)

y = 4/3x + 8/3 - 9/3

y= 4/3x -1/3

HELP QUICK!! I HAVE ADULTS YELLING AT ME BC I DON'T UNDERSTAND

Answers

Answer:

[tex] 1\frac{1}{6} [/tex]

Step-by-step explanation:

Given:

[tex] \frac{2}{3}*1\frac{3}{4} [/tex]

Required:

Evaluate

SOLUTION:

To evaluate, we need to convert the mixed fraction to improper fraction, then multiply both fractions together.

Thus:

[tex] \frac{2}{3}*\frac{7}{4} [/tex]

Multiply the numerators together, and multiply the denominators together

[tex] = \frac{2 \times 7}{3 \times 4} [/tex]

[tex] = \frac{14}{12} [/tex]

Simply the fraction by dividing the numerator and denominator by 2

[tex] = \frac{7}{6} [/tex]

[tex] = 1\frac{1}{6} [/tex]

adding fractions with unlike denominators 1/3 + - 2/7​

Answers

Answer:

1/21

Step-by-step explanation:

Changing operations to eliminate negative numerators the equation becomes

=1/3−2/7

With unlike denominators find the Least Common Denominator (LCD)

LCD = 21

Multiplying numerators and denominators to get the LCD in all fraction denominators

=1×7/3×7  −2×3 /7×3

Then rewriting the equation with the equivalent fractions

=7/21−6/21

With like denominators we can operate on just the numerators

=7−6/21

=1/21

Answer:

you're correct.

Step-by-step explanation:

If 100 feet of fence is used to enclose a rectangular yard, then the resulting area is given by
A=x(-x+50) where x feet is the width of the rectangle and feet is the length. Determine the length and width that give maximum area.

Answers

Answer:

Step-by-step explanation:

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