cpnsider capm the risk free rate is ^5 and the expected return on the market is 18% what is the expected return on a stock with a beta of 1.3

Answers

Answer 1

Answer:

Expected return = 21.9 %

Explanation:

The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.  

Under CAPM, Ke= Rf + β(Rm-Rf)

Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)  

This model can be used to work out the cost of equity as follows:  

Ke= Rf + β (Rm-Rf)  

Rf- 5%, β= 1.3, Rm- 18, E(r)- ?  

Ke =  5% + 1.3×(18-5)%=21.9 %  

Ke = 21.9 %

Expected return = 21.9 %


Related Questions

be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the economic production quantity would be approximately:

Answers

Find full question attached

Answer:

C. 40% larger

Explanation:

Economic order quantity(EOQ) is used in inventory management to reduce holding costs and ordering costs by sticking to the best order quantity that can achieve this. From the above, Economic order quantity should be able to reach usage rate but the company has switched from buying to producing and since production is twice usage rate, Economic production quantity(EPQ) should be larger than Economic order quantity and about 40% (from the options)

A generalist practitioner performing the role of _____ coordinates, on behalf of a specific client, needed services provided by any number of agencies, organizations, or facilities.

Answers

Answer:

Case manager, Specific client

Explanation:

Case manager is a generalist practitioner performing the role of a specific client coordinates, on behalf of a specific client, needed services provided by any number of agencies, organizations, or facilities.

Case manager are also known as Human or Social service assistant whose role is to strive to achieve for client empowerment. Case managers do not manage people, instead they help people to handle difficult situations.

Hong Kong Clothiers reported revenue of $5,000,000 for its year ended December 31, 2018. Accounts receivable at December 31, 2017 and 2018, were $320,000 and $355,000, respectively. Using the direct method for reporting cash flows from operating activities, Hong Kong Clothiers would report cash collected from customers of:

Answers

Answer: $4,965,000

Explanation:

From the question, we are informed that Hong Kong Clothiers reported revenue of $5,000,000 for its year ended December 31, 2018 and that the accounts receivable at December 31, 2017 and 2018, were $320,000 and $355,000, respectively.

From the above analysis HongKong Clothiers would report cash collected from customers of:

= $5,000,000 + $320,000 - 355,000

= $4,965,000

All licensees should give earnest money checks to their sponsoring broker immediately who must deposit said earnest money by:_______

a. the third day following the contract acceptance.
b. the next business day of contract acceptance.
c. within seventy four hours from the time the offer is delivered.
d. the third day following the final counteroffer.

Answers

Answer:

b)the next business day of contract acceptance.

Explanation:

A license which is reffered to as a permit to authority should make sure their sponsoring brokers were given earnest money checks after the contract has been accepted so that it can becomes a legal deal.

It should be noted that All licensees should give earnest money checks to their sponsoring broker immediately who must deposit said earnest money by the next business day of contract acceptance.

Why is it important to site? Name at least three reasons

Answers

Answer:

It gives proper credit to the author, it helps you avoid plagiarism, and it helps to create more ideas in your mind.

The ______________________________ is an award competition for students attending Nuts and Bolts member schools that recognizes outstanding business skills and academic excellence.

Answers

Answer:

Nuts and Bolts International Business Student of the Year Competition (IBSY)

Explanation:

This competition seeks to award students attending Nuts and Bolts member schools for their outstanding business skills and academic excellence. Interestingly, this award has been in existence for 15 years now.

For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your marginal cost of the 100th meal is: Group of answer choices

Answers

Answer:

$6

Explanation:

Marginal cost is additional cost for producing one extra unit of product

The given parameters are;

The amount paid for the semester meal plan = Nonrefundable $600

The number of meals that can be eaten with the meal plan = 150

The number of meals ate = 100

Therefore, at $600, the marginal cost of the 100th meal is the cost of producing 100 meals at $600 given as follows;

Marginal cost of a meal = Total amount paid for the semester meal plan/(Total number of meals taken)

The marginal cost of the 100th meal = $600/100 = $6.00

The marginal cost of the 100th meal  = $6.00

The marginal cost of the 100th meal is $6.

Calculation of the marginal cost:

Marginal cost refers to the additional cost for generating one extra unit of product

Since

The amount paid for the semester meal plan = Nonrefundable =  $600

The number of meals that can be eaten with the meal plan = 150

The number of meals ate = 100

Now

Marginal cost of a meal = Total amount paid for the semester meal plan/(Total number of meals taken)

= $600/100

= $6.00

Hence, The marginal cost of the 100th meal  = $6.00

learn more about marginal cost here: https://brainly.com/question/10742640

one importance of keyboard is​

Answers

Answer:

Keyboard helps a user to type a letter,number and etc..

Question # 6 Multiple Choice A hotel in the Virgin Islands offers an all-inclusive deal, which includes, flight, lodging, and food. However, there are not selling because people feel it's too expensive. Which of the following is not one of the Ps illustrated in this example? packaging partnership price people ​

Answers

Answer:

The correct option is;

Packaging

Explanation:

The four Ps of marketing are Product, Price, Promotion, Place. Some additional Ps have been added due to present day market structure and serve to fine-tune the marketing organization.

The additional Ps includes; People, Process, Physical evidence, Packaging, Performance, Partnerships and Programs

Among the Ps listed, the P not illustrated in the example is packaging which contributes to building a public image for the business

Answer:

People

Explanation:

The hotel is doing what the customers want. I also just got it right.

If the price level in 2018 is 150 and it rises to 165 in 2019, what is the rate of inflation between 2018 and 2019

Answers

Answer:

10%

Explanation:

The price level in 2018 is 150

The price level in 2019 is 165

P1= 150

P2= 165

Therefore, the rate of inflation between 2018 and 2019 can be calculated as follows

P2-P1/P1

= 165-150/150

= 15/150

= 0.1×100

= 10%

Hence the rate of inflation between 2018 and 2019 is 10%

If you knew nothing about your data except that it is a scale variable, which measure of central tendency would be the "safest bet"?

Answers

Answer:

Median

Explanation:

The scale variable refers to a variable in which it could be measured and contains a numerical value

In case when you dont know about the data except for scale variable so the safest bet for measuring the central tendancy should be median as it derives the mid-value of the given set of numbers

So here the median should be considered

Creating a favorable impression and building trust with prospective customers is a critical part of the __________ step of personal selling.

Answers

Answer:

Approach

Explanation:

Personal selling in the domain of finance involves the process in which customer are able to convinced about a products to buy them, it is usually utilized by sales person and it involves many steps . It should be noted that Creating a favorable impression and building trust with prospective customers is a critical part of the approach step of personal selling.

Proponents of using the inflation tax to finance government budget deficits argue that: Multiple Choice these deficits would be far worse otherwise. inflation is ultimately beneficial in the long run. the economic slowdown produced by the inflation tax is preferable to the hyperinflation that would occur in the absence of the inflation tax. while inflation is undesirable, the breakdown of the economy that would occur in the absence of an inflation tax would be worse.

Answers

Answer:

while inflation is undesirable, the breakdown of the economy that would occur in the absence of an inflation tax would be worse.

Explanation:

This is because, they believe that, when the economy under inflation is taxed, the money generated would be used to cushion the effects of those inflation through adequate management and administering of policies and projects.

In the late 1990s, travel companies adopted a new business model in which they sold tickets via the web, and buses did not run off a terminal but a street corner. there were about fifteen such carriers in the northeast itself, and boltbus had not been launched as yet. this indicates that boltbus did not _____.

Answers

Answer:

Possess a first-mover advantage

Explanation:

The first mover is the maiden product or service to enter a market space that achieves relative competitive advantage compared to later entrants into the market due to the product or service being the first established product or service. Such products or markets that open up a market tend to a stronger brand and a deeper rooted business model as well as more customers loyalty than the later products that sought more market.

What law requires businesses to communicate more openly about the hazards associated with the materials they use and produce and the wastes they generate

Answers

Answer:

Occupational safety and health act.

Explanation:

Occupational safety and health act is a set of law put together to ensure a standard for a safe and healthy working environment for employees and an assurance of workplace safety .

One of the guidelines to a safe working environment is the requirement that businesses should communicate more openly about associated hazards with the materials they use and produce and the waste they generated as well so that every employee will have a good understanding of related potential hazards and will be careful in complying with the safety measures in place to prevent occurrence.

A store owner is trying to decide whether or not to cheat her customers. Which one of her arguments would qualify as a moral decision, according to Bentham and Mill?

Answers

She decides not to cheat her customers because such an act could not be made into a universal law.

A sharing arrangement in which only deductible costs are apportioned to the investor, with the sponsor bearing all capitalized costs is called

Answers

Answer:

D) functional allocation

Explanation:

These are the options for the question;

A) overriding royalty arrangement.

B) reversionary sharing arrangement.

C) carried interest.

D) functional allocation.

A sharing arrangement in which only deductible costs are apportioned to the investor, with the sponsor bearing all capitalized costs is called functional allocation.

functional allocation in management involves the act in which employee are grouped in departments according to skills possessed by them or area they specialize in, and these department are been managed by functional leader.. It is very important in business for employees to give their best during production.

Efficient processes in manufacturing that resulted in quality products and reduced unit costs was the focus of which era in the evolution of marketing?

Answers

Answer:

Product orientation.

Explanation:

Efficient processes in manufacturing that resulted in quality products and reduced unit costs was the focus of product orientation in the evolution of marketing.

Product orientation refers to a management philosophy or concept which suggests that the quality of the goods produced by a company are much more important than the needs and wants of the potential customers in the target market. This ultimately implies that, the end users or consumers would be more attracted to goods that are of quality standards.

Firms pursuing a __________ strategy strive to be the lowest cost producer in an industry for a particular level of product quality.

Answers

Answer: B)cost leadership

Explanation:

Firms that pursue a Cost Leadership strategy aim to employ practices and standards that will enable them to produce so efficiently that they have the lowest cost in the industry for a particular level of product quality.

This will translate to them being able to offer their goods at a lower price than the competition thereby increasing their profitability and enabling them capture market share.

With regard to a prior perfected security interest in goods for which a financing statement has been filed, which parties is most likely to have a superior interest in the same collateral?

Answers

Answer:

A buyer in the ordinary course of business who purchased the goods from a merchant

Explanation:

In finance, perfected security interest is an interest in a property that prevents other party from having claims on it legally.

It should be noted that With regard to a prior perfected security interest in goods for which a financing statement has been filed, the parties is most likely to have a superior interest in the same collateral is buyer in the ordinary course of business who purchased the goods from a merchant.

The accounts receivable turnover ratio for a merchandiser is 9.9 times. Calculate the​ days' sales in receivables for the merchandiser.​ (Round your answer to the nearest​ day.)

Answers

Answer:

36.86 days

Explanation:

As we know that

Accounts Receivable Days = 365 / Accounts receivable Turnover ratio

Here

Accounts receivable Turnover ratio is 9.9

By putting values, we have:

Accounts Receivable Day = 365 / 9.9 = 36.86 days

ABC Manufacturing employs a man who frequently exhibits aggressive behavior towards both coworkers and customers. Managers at ABC realize that the employee has a potential for violence, yet they continue to keep him on the payroll. If the employee harms a coworker, then ABC Manufacturing could be held liable for

Answers

Answer:

negligent retention

Explanation:

Negligent retention is a type of claim where an employer is sued for not firing an employee that exhibited behavior that posed a treat to other coworkers. This unwanted behavior might include sexual harassment, bullying, violent behavior, fraud, dishonesty or other types of improper conduct.

The person filing the claim must have been hurt by the other employee's behavior and the company must have been notified about the employee's bad conduct.

The essence of _____ marketing is the belief that if businesses deliver valuable information to buyers, customers will reward them with their business and loyalty.

Answers

Answer:

Explanation:

The essence of marketing is the belief that if businesses deliver valuable information to buyers, customers will reward

Answer:

Content

Explanation:

Actually, the right answer, found it in the textbook.

On October 1, Hill Corporation signed a 6-month note with principal of $10,000 and interest of $600 due in six months. The stated rate of interest on the note is

Answers

Answer:

the stated interest rate on the note is 12%

Explanation:

The computation of the stated rate of interest on the note is shown below:

= Interest ÷ Principal amount

= $600 ÷ $10,000

= 0.06

Since it is of six months but we have to determine annually

So we should multiplied it by 2

Like this

= 0.06 × 2

= 12%

hence, the stated interest rate on the note is 12%

Which of the following is an outcome of effective listening in the workplace? Group of answer choices Lost opportunities A premium on communication skills Stronger organizational relationships Less temptation to multitask More opportunity to contribute

Answers

Answer:

Stronger organizational relationships

Explanation:

Effective listening enables individuals bro better understand each other and fosters collaboration.

When employees listen effectively to one another they build stronger relationships. This is important in organisations that have high diversity in the employee pool.

Also effective listening helps employees better understand customer needs and enables them to effectively meet customer expectations.

Most customer problems are easily solved when the employee listens carefully to what the customer is saying

If a manager chooses the right goals to pursue, but does a poor job of using the resources in achieving these goals, the result (in terms of efficiency and effectiveness) is

Answers

Answer:

low efficiency, high effectiveness.

Explanation:

If a manager chooses the right goals to pursue, but does a poor job of using the resources in achieving these goals, the result (in terms of efficiency and effectiveness) is low efficiency, high effectiveness.

High effectiveness implies that an individual is capable of choosing the right goals, objectives and mission to achieve success in their field (endeavors). When a manager has high effectiveness, it can be said that he or she is able to solve targeted problems.

Low efficiency refers to the state of not being able to accomplish a goal successfully using the available resources.

What feature of the operator’s manual provides supplemental information such as References, basic issue item (BII) lists, and lubrication procedures?

Answers

Answer:

Appendices

Explanation:

Operator's manual have various Chapters in it. Each of them are designated to some particular topic.

As for example the first chapter towards the basic description of vehicle, second towards the operating instructions, as to where and how the vehicle shall run and the basic guidelines, third chapter might contain the details for the use of vehicle in case of any emergencies.

Further at the last or near to last there is appendices which shows the references, all the items basically issued, vehicle sign/ decal information, lubrication etc:

On October 1, Callison accepts a 5-year interest bearing note receivable for $1,000. The note bears interest of 12%. Both principal and interest are received at maturity. The journal entry required on December 31, Year 1, to accrue interest will include:_______

Answers

Answer:

Dr Interest Receivable $30

Cr Interest Revenue $30

Explanation:

Based on the information given we were told that Callison accepts an interest bearing note receivable for the amount of $1,000 in which the note has the interest of 12%,This means that journal entry on December 31, Year 1, to accrue interest will include:

Dr Interest Receivable $30

Cr Interest Revenue $30

Calculated as :

Accrued interest =12%×$1,000×(3/12)

Accrued interest=$30

_______________ are a comprehensive tool, especially since it would cost our society so much to prosecute and allow a trial for every individual that committed a crime.

Answers

Answer:

"Plea bargains" would be the correct approach.

Explanation:

The mechanism by which a convicted criminal as well as lawyer arrive at a mutually agreeable conclusion of such a criminal proceeding needs to be approved by the judge. It is indeed a deal during which the offender seeks to make a reduced case guilty verdict and indeed the complainant offers to dismiss an even more severe punishment.

Your roommate just bought an iPod for $200. She would have been willing to pay $500 for a machine that could store and replay that much music. How much consumer surplus does your roommate enjoy from the iPod? *

Answers

Answer:

$300

Explanation:

Consumer surplus refers to the gain a customer has when the price of a product is lower than what they are willing to pay. According to this, the consumer surplus would be:

Price the customer was willing to pay: $500

Price paid: $200

$500-$200=$300

According to this, your roommate enjoyed from the iPod a consumer surplus of $300 because she was willing to pay $500 and she paid $200.

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