According to the CAPM, what is the expected market return given an expected return on a security of 12.5%, a stock beta of 1.9, and a risk-free interest rate of 3%?

Answers

Answer 1

Answer:

5%

Explanation:

The security is 12.5%

The stock beta is 1.9

The risk free interest rate is 3%

Therefore the expected market return can be calculated as follows

12.5= 3 + 1.9×Market return

12.5= 3 + 1.9market return

12.5-3= 1.9market return

9.5= 1.9market return

market return= 9.5/1.9

= 5%

Hence the expected market return is 5%


Related Questions

Following a two-car accident, damages to both motorists totaled $48,000. If one motorist was 75% at fault and the other was 25% at fault, under the complete comparative negligence rule, the net compensation would be:

Answers

Answer:

Motorist will zero compensation

Other party will receive 75% of compensation

Explanation:

The comparative negligence rule helps in situations where both of the parties were negligent. If one motorist is injured because of his fault and due to other one then the comparative negligence rule says that the percentage of negligence of each party will be determined. The person who is greater than 50% negligent, will not be able to recover his damages and will be barred from recovery whereas on the other hand if the person was not less than 50% negligent then he will be able to recover his damages caused by the accident in proportion to fault.

In this case, the motorist was 75% at fault which means that as per the comparative negligence rule, the motorist is barred from recovery and the net compensation would be zero for the motorist. The other party would receive 75% of his damage because this was caused by the 75% fault of motorist.

The 20% off sale is a better deal than the $200 rebate or $150 coupon for the $1,500 dining set. The Porters budgeted $1,250 for a new dining room set. Explain why this is the best deal for them. Are they under budget?

Answers

Answer:20% off is better and it is the only offer which is under the budget.

Explanation:Given,

The original cost of the dining set = $ 1,500,

If there is a off of 20%,

Then the discount on dinning table = 20% of 1500

= $ 300

So, the final amount of the dinning table after 20% off = 1500 - 300 = 1200 < 1250

Thus, it under the budget.

Now, in $ 200 rebate,

The new cost of the dinning table = 1500 - 200 = $ 1300 > 1250,

Thus, it is not under budget.

While, In $150 coupon,

The new cost of the dinning table = 1500 - 150 = $ 1350 > 1250,

Thus, it is not under budget.

20% off is better and it is the only offer which is under the budget.

20% off of the $1,500 dining set is $300, and the dining set price will be 1500 - 300 = $1200.

And by applying the $150 coupon, the dining set price will be $1500 - $150 = $1350.

Therefore 20% off is better and it is the only offer which is under the budget.

What is problem-solving?

Problem-solving is the act of defining a problem; figuring out the purpose of the trouble; identifying, prioritizing, and selecting alternatives for an answer; and imposing an answer.

What are problem-solving and examples?

Problem-solving starts with identifying the issue. As an example, a trainer may need to parent out a way to improve a scholar's overall performance on a writing talent test. To do that, the instructor will overview the writing exams looking for regions for improvement.

Learn more about Problem-solving here: brainly.com/question/13818690

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On January 1, 2018, Glanville Company sold goods to Otter Corporation. Otter signed an installment note requiring payment of $15,000 annually for six years. The first payment was made on January 1, 2018. The prevailing rate of interest for this type of note at date of issuance was 8%. Glanville should record sales revenue in January 2016 of:

a. $90,000.
b. $74,891.
c. $69,343.
d. None of these answer choices is correct.

Answers

Answer:

Glanville should record sales revenue of $74,891

Explanation:

Installment =  $15,000

Number of years = 6

Present value of installment = $15,000 * Present Value factor(8%, 6 years)

Present value of installment = $15,000 * 4.99271

Present value of installment = $74,890.65

Present value of installment =  $74,891

Waste includes any misuse of resources, such as the overuse of services or other practices that directly or indirectly result in unnecessary costs to the Medicare Program. Choose one answer. a. True b. False

Answers

Answer:

True

Explanation:

David owns a single family house and wants to build a new extension at the rear of the house. David hires an architect who verifies that the local zoning laws allow David to build a 10'-0" extension. The extension to David's house is also known as what type of development

Answers

Answer:

As of right development

Explanation:

When a proposed development of land complies with the all zoning laws alongside other rules and regulation that are in place . such development is said to comply with as of right development.

As of right development does not allow any subjective decision and instruction by the members of the city development board in order to allow full compliance to the community zoning laws.

XCEL Corporation paid a dividend yesterday for $1.50. They expect to pay dividends annually at a constant 6 percent annual growth rate indefinitely. If the required rate of return on this investment is 12 percent, what is the current value of this common stock?

Answers

Answer:

$26.50

Explanation:

The computation of the current value of the common stock is shown below:

Current price is

= Current year dividend ÷ (Required rate of return - Growth rate)

where

Current year dividend is $1.59

The Required rate of return is 12%

ANd, the growth rate is 6%

Now place these values to the above formula

So, the current price of the common stock is

= ($1.50 × 1.06) ÷ (0.12 - 0.06)  

= $1.59 ÷ 0.06

= $26.50

An amount of money that is paid by the company to its shareholders on the regular basis is called a dividend.

The current value of this common stock is $26.50.

This can be estimated by:

[tex]\text{Current price} = \dfrac{\text{Current year dividend}}{(\text{Required rate of return - Growth rate})}[/tex]

Where,

The current year interest = $1.59

The essential rate of return = 12%

The growth rate = 6%

Hence, the current value of the common stock is:

[tex]= \dfrac{(\$1.50 \times 1.06)}{(0.12 - 0.06)}[/tex]

[tex]= \dfrac{\$1.59}{0.06}[/tex]

= $26.50

Therefore, the current price of the common stock will be $26.50.

To learn more about dividend and shareholders follow the link:

https://brainly.com/question/16155930

Hank wants to use a "Maximize Conversions" campaign with the Performance Planner. Which recommendation can be provided to Hank by the Performance Planner?

Answers

Answer: A recommended average daily budget

Explanation:

The options to the question are:

• Recommended campaign bid scaling

• A recommended Campaign-level • Target ROAS (return-on-ad-spend)

• A recommended Campaign-level Target CPA (cost-per-acquisition)

• A recommended average daily budget.

From the question, we are informed that Hank wants to use a "Maximize Conversions" campaign with the Performance Planner. The recommendation that can be provided to Hank by the Performance Planner is a recommended average daily budget. This will help in maximizing conversions.

A(n) ________ underwrites new issues of securities for corporations, states, and municipalities needed to raise money in the capital markets.

Answers

Answer:

Non Banking Institutions (Investment Bank)

Explanation:

Non Banking Institutions (Investment Bank) do not have a full banking licence and are not usually supervised by a national or international banking regulatory agency.

NBIs facilitate investment, market brokerage, contractual savings and risk pooling.

Non Bank Institutions provide avenues for transforming an economy's savings to capital investment.

One way they do this is by underwriting new issues of securities for corporations, states, and municipalities needed to raise money in the capital markets.

A new landscaping company uses the same logo and shade of green in all forms of communication including its online ads, truck signage, website, and business cards. Which technique is being used by this landscaping company to promote its business

Answers

Answer:

integrated marketing communications

Explanation:

When a company uses integrated marketing communications (IMC), it will use a similar language and transmit a similar message through all its marketing efforts. I.e., when companies promote their products or services using the same message through different marketing channels (e.g. internet, t.v., printed ads, etc.)

If total utility (TU) is rising as more salsa is consumed, we can definitely say that marginal utility (MU) is:

Answers

Answer:

D) greater than zero.

Explanation:

Here are the options to the question :

A) constant.

B) falling.

C) rising.

D) greater than zero.

Total utility is the total satisfaction derived from consuming a good or service.

Marginal utility is the change in total utility as a result of an increase in consumption

Marginal utility can either be increasing , decreasing or remain constant depending on the changes in total utility

If total utility is increasing, then marginal utility must be greater than zero

Please check the attached image for a table showing how marginal utility changes based on how total utility changes

Hutch Inc., a software company, uses an approach in which software developers and programmers interact directly with customers. The team asks the customers for their requirements, develops a sample, and sends it to them for feedback. The team continues production based on the feedback given by their clients. The firm spends less time on negotiating contracts and documenting processes. This scenario implies that Hutch is using which approach

Answers

Answer:

The question is incomplete, the options are missing. The options are the following:

A)  Total Quality Management

B)  Downsizing

C)  Agile

D)  Outsourcing

E)  Just-in-time

And the correct answer is the option C: Agile.

Explanation:

To begin with, the "Agile Software Development" is considered to be an approach when it comes to software devolpment and it focus on the devolpment of requirements and sollutions by the work of the whole team inside an organization and its consumers or users that will have a huge relationship in other to interact with the other group so that the client gets the best work as possible becuase of the great relationship between the parties. That is why that in the case presented, Hutch is using an Agile approach to interact directly with the consumers.

2. Idler Co. has an investment in Cowl Corp. for which it uses the equity method. Cowl has suffered large losses for several years, and the balance in the investment account has been reduced to zero. How should Idler account for this investment

Answers

Answer:

Since the account's balance is $0, Idler should not continue to use the equity method to report their investment in Cowl Corp. E.g. Idler has 50% of Cowl, but 50% of $0 is still $0. Only if Cowl continues to operate and starts making a profit, should Idler again start including that investment in their balance sheet using the equity method.

HELP ASAP PLEASE!!! WILL GIVE OUT BRAINLIEST!! Click an item in the list or group of pictures at the bottom of the problem and, holding the button down, drag it into the correct position in the answer box. Release your mouse button when the item is place. If you change your mind, drag the item to the trashcan. Click the trashcan to clear all your answers. Label the parts of the Transactional Model. The options are EXTERNAL, INTERNAL, DECODING, PERCEIVING, MESSAGE, RECEIVING, ENCODING, TRANSMITTING, SENDING, CHANEL, INTERNATIONAL, and CONTEXT

Answers

Answer:

All the answers

Im not sure about external and internal above but everything else is correct promise

Explanation:

Answer:

noise are the ones going from mouth to ear.

Explanation:

Logan Corp. purchases supplies on account and appropriately records the transaction in an asset account. The adjusting journal entry at year-end when accounting for supplies used will require a (Select all that apply.)

Answers

Answer:

Debit to supplies expenseCredit to supplies

Explanation:

Supplies to be used in a period will be considered an expenses so Logan should debit the Supplies Expense account to show that as an expense, the supplies used have increased.

As Logan Corp. bought the supplies on account, they should record this as a credit in the supplies account to show that it is a liability account that is still owed.

A formal agreement between separately owned and controlled facilities to officially coordinate and share certain activities is most appropriately referred to as

Answers

Answer:

An affiliation

Explanation:

An affliation in management refered to act of associating, this could be a former agreement on a particular projects, whereby there is agreement between the partners to carry out a certain activities and how it's officially coordinated. It usually employed among organizations.

Therefore, from the question Formal agreement between separately owned and controlled facilities to officially coordinate is known as an affiliation

Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. Two workers sharing a computer can together inventory 175 items per hour. Three workers sharing a computer can together inventory 185 items per hour. And four or more workers sharing a computer can together inventory fewer than 185 items per hour. Computers cost $100 each and you must pay each worker $25 per hour.

Answers

Answer:

a. The cost of inventorying a single item is $1.00 per item.

b. The cost of inventorying a single item is $0.86 per item.

c. The cost of inventorying a single item is $0.95 per item.

d. The cost of inventorying a single item is $1.08 per item.

e. You should assign two workers per computer in order to minimize the cost of inventory per single item.

Explanation:

Note: This question is not complete. A complete question is therefore provided before answering the question as follows:

Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. Two workers sharing a computer can together inventory 175 items per hour. Three workers sharing a computer can together inventory 185 items per hour. And four or more workers sharing a computer can together inventory fewer than 185 items per hour. Computers cost $100 each and you must pay each worker $25 per hour.

a. If you assign one worker per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

b. If you assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

c. If you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item

d. If you assign four workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item.

e. How many workers per computer should you assign if you wish to minimize the cost of inventory per single item? _____ worker(s) per computer

The explanation to the answer is now provided as follows:

Note: See the attached excel file for all the calculations.

a. If you assign one worker per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

The cost of inventorying a single item is $1.00 per item.

b. If you assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

The cost of inventorying a single item is $0.86 per item.

c. If you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item

The cost of inventorying a single item is $0.95 per item.

d. If you assign four workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item.

The cost of inventorying a single item is $1.08 per item.

e. How many workers per computer should you assign if you wish to minimize the cost of inventory per single item? _____ worker(s) per computer

To minimize the cost of inventory per single item, you should assign the number of workers at a point where the cost inventorying a single item is the lowest.

From from parts a to d above, the lowest cost of $0.86 per item of inventorying a single item is obtained in part b when you assign two workers per computer.

Therefore, you should assign two workers per computer in order to minimize the cost of inventory per single item.

a company is selling used office quipment for $12000 they purchased it 2 years ago for $50000 what is the gain or loss on the sale

Answers

Answer:

( B ) -$18,000

Explanation:

Calculation for the gain or loss on the sale

First step is to calculate for the depreciation of equipment

Depreciation of equipment = ($50,000 - 0) / 5

Depreciation of equipment= $10,00 per year

Second step is to find the value of the asset after 2 years

Value of asset after two year = $50,000 - $20,000

Value of asset after two year Value= $30,000

Third step is to calculate the loss on the selling asset

Loss on selling asset = $12,000 - $30,000

Loss on selling asset =- $18,000

Therefore the loss on the sale will be - $18,000

You are a valuable member of the student store staff. You handle many of the cash box transactions, moving the daily cash between the store and the office, where it is held overnight. You remember that you needed to have cash to reserve your spot on the senior trip today, and your wallet is empty. You have the money at home, but forgot to pick it up this morning. You can’t ask your friends because they don’t carry that much cash, and no one is at your house to bring it over. You know how the money is moved around through the student store, and could "borrow" the money from the cash box until tomorrow, and nobody would probably know. How do you proceed?

Answers

Answer:

I can put a call through to the organisers of the trip explaining that I have cash but it's not within reach and that if they reserved the spot for me, they'd get the money as soon as I can access it. Given that I am a valuable member of the student store staff, that reputation should count in times like this.

To borrow money from the cashbox would be a huge ethical risk and can easily be termed mismanagement of funds especially where the store policy does not allow such.

My value in the store lies largely on my integrity and the trust they students have invested in my person.

I'd rather miss the road trip than make a regrettable unethical decision.

Cheers!

Answer:

Taking money from the cash box would be stealing—it would be unethical. Instead, I would call a family member or a friend and request someone to lend me the money. In case this does not work, I‘d call the concerned organizers and try to convince them to allow me to bring in the money the following day.

Explanation:

HELP MEE
What is a possible style of formatting your company could prefer?
A. Justification
B. Sans serif
C. TXS
D. MLA
SUBMIT

Answers

MLA is your answer.(D)

Answer: MLA

Explanation:

AP3X

pog

Lifestyle Changes... Good or Bad for your Career?

Answers

Answer:

good

Explanation:

because soemtimes you be in a bad place and you gotta get better

"Planning sessions, workshops, formal reports, and personal conversations are all part of the internal __________ that is necessary to implement marketing strategy using the internal marketing approach."

Answers

Answer:

The correct answer is: Distribution.

Explanation:

To begin with, the concept of distribution inside the marketing field and refering specifically to the internal marketing approach is understand as the way that the informatino of the marketing strategy is distributed inside the organization with all of the members that need to know that data in order to focus on the campaign and make it possible and effective so that the objectives are accomplished. That is why that the planning sessions, workshops, formal reports and personal conversations are part of the internal distribution that is necessary to implement the marketing strategy that the company tends to use.

The employees at Herby Financial often complain that they are not provided feedback about their work. They feel that they do not get proper information as to how they have performed and the areas in which they need to improve. They also claim that the performance goals are vague and not measurable. Which HR function does Herby Financial need to specifically improve upon to resolve the complaints put forth by its employees

Answers

Answer:

The right approach will be "Performance management".

Explanation:

Performance management seems to be an instrument of organizational practice that lets management teams regulate as well as assess the productivity of employees. It aims to create an enabling atmosphere in which employees could perhaps accomplish maximum quickly and safely to the highest possible standard to deliver the highest-quality research.

The accrual concept that costs incurred to generate a revenue are expensed in the same period the revenue is known as the

Answers

Answer:

Matching concept

Explanation:

This accounting principle is of the opinion that the expenses incurred in generating revenue should be matched with the revenue or income in order to ascertain whether or not profit or loss has been made,in other words,reporting only the revenue without considering the fact some amount has been incurred in a bid to generate the revenue does not a clear picture of the business underlying transactions.

It is simply aggregating like with like since costs incurred in the period are deducted from revenue in the same period.

Product liability, covered by tort law, provides consumers and users with remedies when they are injured or suffer property damage as a result of:

Answers

Answer:

Negligence of the producer in production of its product for safe consumption

Explanation:

Product liability is a compulsory policy for manufacturers that provide compensation to the injured third party consumer who suffer injury or bodily harm as a result of use of the manufacturer product arising as a result of the negligence of the producer in producing its product.

This liability cover only provide compensation and remedies to consumer if they suffer damage as a result of use of the product. Remedies ranges from Cash payment, Treatment up to the affected get heal and many others

"The principle stating that asset and liability measurements should be based on the amount given or received in the original transaction is referred to as the"

Answers

Answer:

Historical cost

Explanation:

historical cost can be defined as the measure of value used in accounting and that is the value of an asset on a balance sheet.

Historical cost is used for assets that are fixed in the United states of America. Cheers

Any factor that can change

Answers

The things that change in an experiment are called variables. A variable is any factor, trait, or condition that can exist in differing amounts or types. An experiment usually has three kinds of variables: independent, dependent, and controlled.

a factor which can be changed in a experiment. ... all factors which remain the same for each repeated trial for all levels of the independent variable

Explain the services offered by wholesalers to manufacturers

Answers

Answer:

advertising :the wholesaler helps out in carrying out product advertising and sales promotion s and by so doing creating awareness for the product

risk bearing :the wholesaler takes charge of the goods thereby accepting responsibility for losses sufferedin the course of distribution

and we have financing,warehousing and bulk breaking

20 POINTS PLEASE HELP WILL GIVE BRAINLY!!!!!!!!!!!


Let's say you're in eighth grade. At your school, it's traditional for eighth graders to have a dance each spring before they leave for high school. In order to make your dance a success, your class will need to fundraise. You're hoping that selling candy-grams for Valentine’s Day will raise a lot of money! The cost of producing each candy-gram is a dollar, but this does not include the cost of making any posters or banners to promote your sale. Give your reasoning as to the lowest price you should charge for each candy-gram. What would be the highest possible price you could charge? Would your class be willing to create and sell more candy-grams at the highest price than at the lowest? Why or why not?

Answers

Answer:

i think $1 will be okay forthe lowest price at least is something everyone can afford abd the highest pruce will be 2$ cause we will need to raise funds and other materials and alsi love to sell at the highest cause there is other materials and not everyone will wabt to spend such on a candy everyone has things to buy

"The time horizon to be used when constructing a portfolio to pay for college expenses for a person who is expected to start college in 10 years and finish college in 15 years is:"

Answers

Answer:

15 years

Explanation:

If you are constructing a portfolio to cover the education expenses of your child and you expect that he/she graduates from college in 15 years, then the time horizon of your portfolio should be 15 years since it should cover all the expenses until your child graduates. If you start a little earlier and expect your child to graduate in 20 years, the time horizon will be 20 years, or if you start a little later and expect your child to graduate in 10 year, then the time horizon is 10 years.

Maliha files her tax return 35 days after the due date of the return. along with the return, she remits a check for $3,000 which is the balance of the tax she owed. disregarding the interest element, maliha's total penalties are $

Answers

Answer:

$300

Explanation:

The IRS establishes a 5% penalty over the taxes that you owe for every month that passes between the due date and the time you actually pay your taxes. In this case, the IRS would penalize Maliha for 2 months (the IRS doesn't use fractions) = $3,000 x 5% x 2 months = $300.

If you are more than 60 days late, then the minimum penalty is $435 or an amount equal to the total taxes owed (the lesser of both).

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