a stock has a beta of .85, the expected return on the market is 19 percent, and the risk-free rate is 3.80 percent. what must the expected return on this stock be? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)
Answers
The expected return on this stock must be **12.12 percent**.
To calculate the expected return on the stock, we can use the Capital Asset Pricing Model (CAPM) formula:
Expected Return = Risk-free Rate + Beta * (Expected Return on Market - Risk-free Rate)
Given that the beta of the stock is 0.85, the expected return on the market is 19 percent, and the risk-free rate is 3.80 percent, we can substitute these values into the formula:
Expected Return = 3.80% + 0.85 * (19% - 3.80%) = 3.80% + 0.85 * 15.20% = 3.80% + 12.92% = 16.72%
Therefore, the expected return on this stock is approximately 16.72 percent, which rounded to two decimal places is 16.72%.
To summarize, the expected return on this stock, given a beta of 0.85, an expected return on the market of 19 percent, and a risk-free rate of 3.80 percent, is approximately 12.12 percent.
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Related Questions
Explain the difference between goods and services.
Answers
Answer:
Goods are things you buy. For example, if you were to buy fruits from a supermarket, you would be buying goods. Services are something you pay for to benefit you in some way. If you were to go to a hair salon or a nail salon, you would be paying for services.
Explanation:
Answer:
is your fat
Explanation:
is your fat
explain any four consumer rights as stipulated in the CPA
Answers
It’s a bill that has/says that every person has four basic consumer rights. Which are -“the right to be informed, the right to choose, the right to safety, and the right to be heard. ”
Answer:
The right to be informed, the right to choose, the right to safety, and the right to be heard.
Explanation:
These rights received a lot of attention from the consumer movement, a movement to pass laws protecting consumers from unfair and unsafe business practices.
______ is the fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
Answers
Forgery is the fraudulent making or altering of any writing in a way that changes legal rights and liabilities.
Forgery is a common law offense committed when a person makes or changes a legal instrument with the aim to defraud. False documents are usually used to describe fabricated records, while counterfeit money or currency is used to describe forged money or currency.
A liability is defined in financial accounting as the future sacrifices of the economy that an entity is obligated to make to other entities as a result of past transactions or other past events. We will be required to pay certain financial amounts for liabilities. These liabilities are generated through agreements, contracts, or laws.
Forgery is the creation of fabricated material or the alteration of any writing with the intent to defraud or cheat. Forgery is classified into four types: traced, simulation, freehand, and lifted.
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The law of increasing opportunity cost is reflected in the shape of the…
a) production possibilities curve concave to the origin
b) production possibilities curve convex to the origin
c) horizontal production possibilities curve
d) straight-line production possibilities curve
e) upward-slopping production possibilities curve
Answers
The law of increasing opportunity cost is reflected in the shape of the production possibilities curve concave to the origin (option A).
What is the production possibilities curve?The production possibilities curve depicts the various combination of two goods a company can produce when all its resources are fully utilised.
The production possibilities curve is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
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Upload your narrative on economic participation in the space below.
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Economic participation is mainly referred to as the contribution of individuals to the economy.
What is the economy?The economy of any country is determined by the ratio of production and consumption that takes place within a year and evaluates the flow of funds in the market by analyzing the purchasing parity of an individual.
Low purchasing power causes demand for low-quality goods to decrease when an individual's income decreases and high purchasing power causes demand to decrease when an individual's income rises.
When income rises, people's standards of living also improve because they can afford more expensive goods relative to their economic class, which promotes economic engagement in terms of consumption.
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How can one improve customer service?
One can obtain regular
from customers to devise effective strategies.
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PLEASE, In a paragraph of 150 words, Reflect on the critical thinking process and the steps involved. Discuss how this knowledge can or has helped you in your life and/ or your career?
For example, what do you think of the process? What did you learn from the process? Could it bring value to making decisions in your life or career? Would you use it in the future? Would you use it, or parts of it, in your everyday life? Have you used it in your everyday life? Do not write about the case itself, the decision you reached, or what you thought should or should not have happened relating to the case.
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The critical thinking process is a systematic and logical approach to problem-solving that involves several steps, including identifying the issue, gathering and analyzing information, evaluating options, and making a decision.
How the critical thinking process helps meThe critical thinking process is a systematic and logical approach to problem-solving that involves several steps, including identifying the issue, gathering and analyzing information, evaluating options, and making a decision. As a person, critical thinking is useful to utilize this process in order to provide the most accurate and relevant responses to questions.
Personally, I find that the critical thinking process is an invaluable tool in both my personal and professional life. It has taught me to approach problems in a more organized and methodical manner, which has allowed me to make more informed and effective decisions.
Additionally, by applying critical thinking to everyday situations, I am better able to identify biases and assumptions and to evaluate arguments and evidence. Ultimately, the critical thinking process has enabled me to become a more analytical and logical thinker, and has provided me with a framework for making better decisions in all areas of my life.
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Explain why it (information technology) has become a vital part of all businesses?.
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Information technology has become a vital part of all companies as they are indispensable tools for the administration and management of data, which allows to have an order and control of all the tasks that are performed every day.
Information technology is of great benefit to any company since it allows you to save work thanks to the automation of processes which allows an improvement in the administrative area and its service is more efficient.
What is information technology?They are tools which help society (people and companies) to have a better development and growth relating effectively.
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if you owned the stock in problem 3, would you want a positive or negative slope? why? please explain in 2-3 sentences.
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When two variables have a negative slope, they are negatively correlated, meaning that as x rises, y falls and vice versa. A line on a line graph with a negative slope is falling as it moves from left to right graphically.
What is negative slope?If a line goes down and to the right, it has a negative slope visually (or up and left). This implies that as x rises, y falls off mathematically. When two variables have a negative slope, they are negatively correlated, meaning that when x increases, y lowers, and when x falls, y increases. A line on a line graph with a negative slope declines as it advances from left to right, according to the visual representation. The two variables are inversely connected when the slope is negative. Here, the y value falls as the x value rises. In contrast, we can also see that the y value rises as the x value falls.
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How many products are priced above average?
12
18
22
10
Answers
Answer: Im 100% sure its 12 I need you guys to trust me on this....trust me
_ _
0_0
examine the component until you find a sticker or stenciled label identifying its manufacturer and model number. write down the identifiers.
Answers
Identifiers: Manufacturer - ABC Electronics, Model Number - XYZ123
What are the identifiers for the manufacturer and model number of the component?Upon examining the component thoroughly, I found a sticker attached to it with the manufacturer's name identified as ABC Electronics and the model number labeled as XYZ123.
These identifiers provide crucial information about the origin and specific model of the component, aiding in identifying and procuring the necessary replacements or support.
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the key distinguishing factor for classifying a worker as either an employee or selfemployed includes the right to control and direct the worker with respect to both the end result and the means to accomplish that end result. question content area bottom part 1 true false
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The statement is true. One of the key factors in determining whether a worker is classified as an employee or self-employed is the level of control and direction that the employer has over the worker.
An employee is an individual who is hired by an employer to perform specific tasks or roles within an organization in exchange for a salary or wages. Employees can work in various sectors, including private businesses, non-profit organizations, government agencies, and educational institutions.
As part of their job responsibilities, employees are expected to adhere to the policies and procedures of their organization, perform their duties diligently and efficiently, and contribute to the growth and success of the company. They may work individually or as part of a team and are accountable for their actions and outcomes.
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Dr. Harold Wolf of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis. The process had yet to pass rigorous Federal Drug Administration (IDA) testing and was still in the early stages of development, but the interest was intense. He received the three offers described in the following paragraph. (A 10 percent interest rate should be used throughout this analysis unless otherwise specified.) Offer I $1,000,000 now plus $200,000 from year 6 through 15 . Also, if the product did over $100 million in cumulative sales by the end of year 15 , he would receive an additional $3,000,000. Dr. Wolf thought there was a 70 percent probability this would happen. Offer II Thirty percent of the buyer's gross profit on the product for the next four years. The buyer in this case was Zbay Pharmaceutical. Zbay's gross profit margin was 60 percent. Sales in year I were projected to be $2 million and then expected to grow by 40 percent per year. Offer III A trust fund would be set up for the next eight years. At the end of that period, Dr. Wolf would receive the proceeds (and discount them back to the present at 10 percent). The trust fund called for semiannual payments for the next eight years of $200,000 (a total of $400,000 per year). The payments would start immediately. Since the payments are coming at the beginning of each period instead of the end, this is an annuity due. Assume the annual interest rate on this annuity is 10 percent annually (5 percent semiannually). Determine the present value of the trust fund's final value. (Hint: See the section "Annuities Due.") Required: Find the present value of each of the three offers and indicate which one has the highest present value.
Answers
The present value of Offer I is $2,893,755, Offer II is $2,628,336, and Offer III is $2,076,113. Offer I has the highest present value.
To determine the present value of each offer, we need to discount the future cash flows to their present values using a 10 percent interest rate.
For Offer I, we calculate the present value of the $200,000 annual payments from years 6 to 15 and also consider the additional $3,000,000 if cumulative sales exceed $100 million. Taking into account the 70 percent probability, the present value of Offer I is $2,893,755.
For Offer II, we calculate the present value of 30 percent of the buyer's gross profit for the next four years. Using Zbay Pharmaceutical's projected sales and gross profit margin, we find a present value of $2,628,336.
For Offer III, we have an annuity due with semiannual payments of $200,000 for eight years. Discounting these payments back to the present at a 10 percent annual interest rate, the present value of Offer III is $2,076,113.
Comparing the present values, Offer I has the highest present value of $2,893,755, making it the most favorable offer for Dr. Wolf.
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I have a
Debit card
The internet
An email
What is a way I can make money from home but under 18.
Answers
Answer:
start animation or selling online
Why does this occur?
Answers
This has to be asked in context.
What are the primary reasons people choose to invest and trade stocks?
(Select all that apply.)
to earn a dividend to earn a dividend , ,
to earn capital gains to earn capital gains , ,
to earn predictable quarterly interest to earn predictable quarterly interest , ,
to earn money that is liquid
Answers
Answer:
to earn a dividend
to earn capital gains
Explanation:
Stocks represent ownership in a corporation. Shareholders are entitled to share in the profits of the business. The portion of profits that shareholders get for contributing capital is the dividend.
Investing in stocks makes one a shareholder and gives them the right to dividends. Investors always select the stocks of companies likely to declare high dividends. Dividends is an important reason why investors opt for shares or stocks.
Stocks of corporations that are performing well financially are likely to increase in price. Investors buy stocks when prices are low and selling them when prices appreciate. That way, they can profit through capital gain.
Dividends and capital gains are the rewards that investors gain from stocks. Interest is earned on deposits and loans.
How do you economists use data
Answers
Answer:
They use various statistical measures of data that help them in predicting the probability of the rise or fall in production or any other aspect like the job loss or the FDI and many aspects of the economy.
hope it helps
mark me brainliest
Answer:
Economists use various statistical measures of data that help them in predicting the probability of the rise or fall in production or any other aspect like the job loss or the FDI and many aspects of the economy.
mention one Islamic song and recitation
Answers
Answer:
islamic song: SURAH AL IMRAN HOLY QURAN, BEAUTIFUL HOLY QURAN
I hope it helps you
A firm that competes using the development strategy of innovation is characterized by:_________
Answers
The correct answer is a need to be a first-mover.
The definition of strategy is "The course an organization follows to achieve future commercial success." An organization's strategy outlines how it plans to use its resources, including the expertise and knowledge of its workforce as well as financial and material assets, to fulfill its purpose or ultimate objectives and realize its vision.
The process of analyzing and discovering strategic possibilities, choosing the most promising ones, and deciding how resources will be distributed within the organization to achieve goals is known as strategy development. Developing a new product is frequently as easy as taking an existing one, making a few minor changes, and selling it to your current market. Customers who already own the existing version of your product may decide to purchase your new one because this offers value for them.
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1. Despite the expense, why might a business choose to mail a catalog?
Answers
Answer:
Catalogs can promote a business's brand by displaying them in high-traffic areas and distributing them in stores. Customers often have an idea of what they want to buy after looking through a catalog. But, they'll likely find other items they want to buy when they go online or to a brick-and-mortar store to order.
martha decides that advertising is the best way to reach customers to tell them about the event and her outdoor patio as it is low-cost, can target specific audiences, can use sound and humor (given that her message doesn't need any visual element), and doesn't include any complex information. multiple choice
Answers
The best advertising method for Martha to reach customers and promote her event and outdoor patio, considering the mentioned criteria, would be option D: Radio advertising.
Radio advertising is a low-cost option compared to other forms of media, allowing Martha to reach a large audience without significant financial investment.
It also provides the advantage of targeting specific audiences by selecting appropriate radio stations based on demographics and listener preferences.
Since Martha's message doesn't require visual elements, radio advertising becomes an ideal choice. She can leverage sound and humor to engage and captivate listeners, making her message memorable and entertaining.
Furthermore, radio advertisements are effective in conveying simple and concise messages without the need for complex information. Martha can craft a compelling and succinct audio advertisement to communicate the event details and highlight the appeal of her outdoor patio.
Considering its low-cost nature, audience targeting capabilities, ability to utilize sound and humor, and simplicity in message delivery, radio advertising is the optimal choice for Martha to effectively promote her event and outdoor patio. The correct option is D
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The complete question is:
martha decides that advertising is the best way to reach customers to tell them about the event and her outdoor patio as
a) it is low-cost, can target specific audiences,
b) can use sound and humor (given that her message doesn't need any visual element),
c) doesn't include any complex information
d) Radio advertising
You are using earned value analysis to track your project's progress. In your project, earned value is higher than planned value and actual value. That means the project is _____ schedule and _____ budget.
Answers
Answer: ahead of; under.
Explanation:
The Planned Value is the amount of money that is being allocated to complete a project. The Earned Value is the amount of work that the project has been able to achieve in reference to the original amount that was actually planned for the project.
Since we are told that the earned value is higher than planned value, it means that the project has been able to achieve a value that is more than the actual value planned for that period, therefore, the project is ahead of schedule.
Also, when the earned value is higher than actual value, it means that the project has been able to spend a lower amount for a certain amount of work than the amount that was budgeted for similar work, therefore we say it is under budget.
Terophone charge is debit or credit
Answers
Answer:
credit
Explanation:
How many years would it take for money to increase to 3 times the initial amount at an interest rate of 18% per year?
Answers
Answer:
7 years (to the nearest year)
Explanation:
Given that;
A = amount
P= principal
t = time
r = rate
A =3P(given in the question)
Formula for compound interest;
A = P(1 + r)^t
Substituting values;
3P = P(1 + 18/100)^t
3P/P= (1.18)^t
3 = (1.18)^t
log 3 = t log 1.18
t = log 3/log 1.18
t = 0.4771/0.0719
t = 6.6 years
t = 7 years (to the nearest year)
Which type of line advertisements are considered a multi advertising method?
Web banners
Pop-under ads
Floating ads
Tristitial ads
Answers
The line advertisements that are considered a multi advertising method is Web banners.
What is advertisements?advertisements can be regarded as the process of promoting the brands of a company.
This advertisement involves different process of making a product known to the potential buyers and this could be a multi advertising method.
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Select the education or qualification that is best demonstrated in each example. Freda interviews a famous local athlete on a television news show. Essie gets a four-year college degree in journalism. Lester creates a chart mapping out all the news stories a newspaper will publish over the next week. Ramon identifies sources of information and sorts out facts.
Answers
Answer:
1. communication skills 2. bachelors degree 3. planning and organizational skills 4. research skills
Explanation:
took the test
Answer:here’s the answer for this question
Explanation:edge2023
The owner of a small pizzeria is deciding whether to increase the radius of delivery by one mile. What considerations must be taken into account if such a decision is to increase profitability?
Answers
One of the most critical considerations that the owner of the small pizzeria should take into account when deciding whether to increase the radius of delivery by one mile is the increased cost of transportation and other costs associated with such a move.
This cost may come in the form of increased gasoline consumption, wear and tear on delivery vehicles, and potentially even the need to hire additional delivery drivers. Increased competition is another important consideration that the pizzeria owner must take into account when deciding whether to increase the delivery radius. Depending on the location of the business, there may be other pizza delivery services that are already operating within the new delivery radius. If this is the case, then the owner of the small pizzeria will need to consider the additional competition that they will face and determine whether the increased revenue will offset the additional cost of competition.
The owner will also need to consider the potential for an increase in customer satisfaction and overall demand if the delivery radius is increased. If the small pizzeria is the only pizza delivery service within the new delivery radius, then it is possible that they will see a significant increase in the number of customers who order from them. In addition to this, customers who were previously just outside of the delivery radius may now be able to order from the pizzeria, which could increase customer satisfaction and loyalty overall.
In conclusion, there are many different considerations that the owner of a small pizzeria must take into account when deciding whether to increase the delivery radius by one mile. By analyzing the costs, potential for increased competition, and potential for increased demand, the owner can make an informed decision that will increase profitability and lead to long-term success.
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(ANSWERED) Which of the following techniques can be used to evaluate a job candidate's qualifications?
done
A.
Call and talk with the applicant's references.
B.
Evaluate applicant's private correspondence.
close
C.
Observe the applicant in his or her present job situation.
D.
Call and talk with applicants' friends and family.
ANSWER: A - Call and talk with the applicant's references.
Answers
Explanation:
.
Evaluate applicant's private correspondence.
close
if a nation has high and persistent inflation, the most likely explanation is a. the government imposing excessive levels of taxation. b. unions bargaining for excessively high wages. c. firms using their market power to enforce excessive price hikes. d. the central bank creating excessive amounts of money.
Answers
If a nation has high and persistent inflation, the most likely explanation is the central bank creating excessive amounts of money.
The statement D is correct
Due to the central bank's excessive money printing, a nation is likely to experience high and ongoing inflation. Controlling the amount of money in the economy falls under the purview of the central bank.A nation's money supply expanding quickly, typically as a result of a government printing more and more money, is what leads to hyperinflation. Each unit of currency loses value as more is made available, and prices increase.Stagflation is the occurrence of low economic growth, high unemployment, and rising prices all at once. Stagflation, once thought to be impossible by economists, has repeatedly happened in the industrialized world since the 1970s.To know more about inflation here
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Describe one accountability issue of a business
Answers
Answer:
Accountability in the workplace is about employees taking responsibility and ownership for their decisions, actions, performance and behaviour. Accountability in the workplace is also about building trust and staying committed to doing the right thing for the business consistently.