6 Δ The expected return for the overall market portfolio is 11.47% and the current T-bill rate is 2.00%. If a stock has an expected return of 12.47% and the CAPM holds, what is the stock's beta? Enter your answer as a decimal and show 2 decimal places.
Answers
The stock's beta, according to the CAPM, is approximately 1.105 (rounded to 2 decimal places).
To calculate the stock's beta using the Capital Asset Pricing Model (CAPM), we can use the following formula:
Beta = (Stock's Expected Return - Risk-Free Rate) / Market Portfolio's Expected Return - Risk-Free Rate)
Given the information provided:
Expected return for the overall market portfolio = 11.47%
Current T-bill rate (Risk-Free Rate) = 2.00%
Stock's expected return = 12.47%
Plugging these values into the formula, we can calculate the stock's beta:
Beta = (12.47% - 2.00%) / (11.47% - 2.00%)
Beta = 10.47% / 9.47%
Beta ≈ 1.105
Therefore, the stock's beta, according to the CAPM, is approximately 1.105 (rounded to 2 decimal places).
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Related Questions
A business prepays four months' office rent. Which of the following accounts is debited? B) Unearned Rent A) Cash C) Rent Expense D) Prepaid Rent
Answers
Prepaid Rent is debited when a business prepays four months' office rent. Option D is correct choice.
When a business prepays rent for a certain period, the transaction is recorded as a debit to the Prepaid Rent account and a credit to the Cash account. This is because the business has paid in advance for the use of the office space, which is an asset, and it hasn't been used yet.
As the months go by, the Prepaid Rent account is gradually decreased with a corresponding increase in the Rent Expense account. At the end of the four-month period, the entire prepaid amount will have been expensed and the balance of the Prepaid Rent account will be zero. Option D is correct.
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Frictional unemployment is inevitable because: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices many wages are above the equilibrium wage for that market. the expansion phase of the business cycle leads to increases in unemployment. the recession phase of the business cycle leads to increases in unemployment. new workers are constantly entering the job market, and jobs are constantly created and destroyed.
Answers
Answer:
a
Explanation:
quizlet
Computer It costs Mak Company $ 28 of variable costs and $ 12 of allocated fixed costs to produce an industrial trash can that sells for $ 60 . A buyer in Mexico offers to purchase 3,000 units at $ 36 each Mak has excess capacity and can handle the additional production . What effect will acceptance of the offer have on net income
Answers
If its $36 per units than it would cost $108,000.
1. Explain the computation of the monetary multiplier.
Answers
On January 1, the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays semiannual interest of $36,250 ($1,450,000 × 5% × ½), receiving cash of $1,408,720.
Answers
Complete Question:
On January 1, the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays semiannual interest of $36,250 ($1,450,000 × 5% × ½), receiving cash of $1,408,720
Journalize the first interest payment and the amortization of the related bond discount using the Straight line method
Answer:
Kindly check Explanation
Explanation:
Given the following :
Face value of bond issued = $1,450,000
Cash received on Issuance = $1,408,720
Number of Interest payment on bond = 5 × 2 = 10(semiannual)
Therefore, discount on bond :
$(1,450,000 - 1,408,720) = $41,280
Spreading or amortizing diacou t on bond over the bond duration (use te straight line method)
Discount / period
$41,280 / 10 = $4,128
Interest expense a/c Dr $40,378
To discount on bond payable a/c Cr $4128
To cash a/c $36,250
Label the parts of the Transactional Model.
Answers
Answer:
HOPE THIS HELP..PLZ MARK ME BRILLIENT
Explanation:
Give me an example of a time when you were able to successfully persuade someone to see things your way at work.
Answers
But, I can give you an example of how someone can persuade others to see their point of view. Let's say you are working on a project and one of your colleagues disagrees with the approach you are taking.
You can persuade them by presenting them with logical and clear arguments that support your approach. You can also provide them with examples of how your approach has worked in the past or how it aligns with the company's objectives. Additionally, you can actively listen to their concerns and address them in a respectful manner. By doing so, you can create a collaborative environment that fosters cooperation and helps everyone achieve their goals.
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A cover letter does all of the following EXCEPT:
Sells you as the best candidate for the job
Introduces you and summarizes your resume
Explains why you don't meet every qualification of the job
Explains why you are interested in the job
Answers
A cover letter does not explain why we don't meet every qualification of the job. The correct option is c.
What is a cover letter?A cover letter can be understood as a written document which is submitted with a job application outlining the applicant's credentials and interest in the open position. A cover letter is often one of only two documents sent to a potential employer, therefore, a well or poorly-written letter can impact whether the applicant is called for an interview. A cover letter which is good complements the resume and explains why the candidate is the ideal person for the job.
Cover letter mistakes can sink a job applicant.
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Why is it important to plan early for your retirement?
That way you can choose the right major in college.
In order to take advantage of the power of compounding.
Planning early will allow you to invest in new companies.
Taxes on retirement investments increase as you get older.
Answers
It is quite important to begin to plan early for your retirement In order to take advantage of the power of compounding.
Why should you plan early for retirement?When you start planning early for retirement, you get to invest funds earlier and leave them to grow for longer.
This means that you can take advantage of the power of compounding, in that your investment will compound for longer and accumulate to higher levels.
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how will you explain a yellow colour to someone who has never seen before??
Answers
Answer:
it is a bright color close to orang but lighter with a tint of white added to orange to make a bright floresent color
Explanation:
Answer:
well, I will explain it like this Yellow is the warm sun while a cool breeze blows on your face. Yellow is exciting without being loud or angry.
Explanation:
Hope this is helpful! Stay safe and God Bless you:)
Which option is best described as a complementary good for trucks?
A. Truck blogs
B. Truck fuel
C. Truck factories
D. Truck regulations
Answers
A good example of a complementary good is Truck regulations since they are used together.
What is regulation?The control of complicated systems in accordance with a set of laws and trends is known as regulation. According to systems theory, these kinds of laws occur in many facets of biology and society, albeit the phrase can have slightly different connotations depending on the situation.
In its broadest sense, regulation is the imposition of rules by the government, supported by the use of sanctions, with the goal of specifically altering the economic behavior of people and businesses in the private sector. There are numerous regulatory tools or objectives.
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Answer:
B. Truck fuel
Explanation:
I just got it wrong with letter D and it is letter B
When performing a liquid-liquid extraction with a separatory funnel which physical property do you need to know about the two liquids?
Answers
When performing a liquid-liquid extraction with a separatory funnel, the physical properties of the two liquids that must be known are their densities, solubility, and intermiscibility.
Calculating the ratio of the two liquids in the separatory funnel requires knowledge of each liquid's density.
The solubility of the two liquids must also be taken into account because successful extraction depends on the solubility of one liquid in the other.
Finally, the ability to readily separate the two liquids makes the intermiscibility of the two liquids crucial.
When doing a liquid-liquid extraction with a separatory funnel, all of these physical characteristics must be taken into account.
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a bank promises to pay 5.5% pa compound interest on deposits of £2337 if saved for 3 years. how much will the savings be worth at the end of the period mentioned? write your answer correct to 2 decimal places.
Answers
Answer:
£2,744.20
Explanation:
savings amounts after 3 years can be calculated using the formula below.
A = P x ( 1 + r) ^ n
Where A is the amount after three years
P = principal amounts: £2337
r: interest rate: 5.5% or 0.055
n is the number of periods: 3 years
A =£2337 x( 1 + 0.055)^3
A =£2337 x(1.055) ^3
A=£2337 x 1.174241
£2,744.20
Amount after 3 years will be £2744.20
If a manufacturer is currently working to position its retail stores and determining how they will implement the four Ps, what are they doing
Answers
Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card. What is Keisha’s net worth?
$88,700
$91,700
$292,700
$496,700
Answers
Answer:
$88,700
Explanation:
Given:
Keisha owns a house value $275,000 with a mortgage of $195,000. She owns a car value $12,000 and has $7,500 in car loans.
She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card.
Hence, The net worth of Keisha is $88,700
Answer:
Answer:
$88,700
Explanation:
Given:
Keisha owns a house value $275,000 with a mortgage of $195,000. She owns a car value $12,000 and has $7,500 in car loans.
She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card.
Hence, The net worth of Keisha is $88,700
Explanation:
Checking off tasks as they are completed is which step in creating an effective assignment notebook?
Step 1
Step 2
Step 3
Step 4
Answers
Answer:
Step 2
Explanation:
Answer:
Step 4
Explanation:
What is the difference between a savings account and a checking account? (Select all that apply.)
Savings accounts pay higher interest than checking accounts.
Deposits in savings accounts, not checking accounts, are used by a bank to invest.
Savings accounts have more restrictions than checking accounts.
Savings accounts are covered more by the FDIC than checking accounts.
Answers
A checking account is a bank account you can write checks from, or access several other ways, which tends to make it your go-to, daily transaction bank account. A savings account is where you stash funds that you aren't ready to use yet, often with the goal of accumulating more.
A span of control is a diagram that shows the structure of an organization.
O a. True
O b.False
Answers
Answer:
False
Explanation:
hierarchy shows the structure of an organization
In human resource management span of control are the management procedure of the business and its components like several working people, projects, deals, organizations etc.
The span of control does not represent the structural organization and hence the statement is:
Option B. False
The structural organization is a blueprint of how a certain task or activity will be performed to achieve the targeted goal.It depicts the flow of information within the company and between the different posts and levels.The span of control is a depiction of how single or multiple organizers and leaders supervise subordinates.Therefore, the given statement is false.
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Name the Airline that Officially Flew springboks
Answers
Answer: FlySafair
Explanation:
FlySafair is a domestic airline in South Africa that is the official sponsor of the South African national rugby team, the Springboks.
FlySafair officially flies the Springboks to locations within and around South Africa and they have been credited with being one of the most punctual airlines there is and have drawn massive praise from Jurie Roux who is the CEO of SA Rugby.
Risk Analysis using Monte Carlo simulation is most appropriate when
a. the pay-offs of a decision only depend upon one factor
b. an accurate probability distribution for the payoffs can be estimated directly by the simulation
c. the payoffs of a decision depend upon several different factors
d. the decision maker is risk seeking
Answers
Monte Carlo simulation is most appropriate when the payoffs of a decision depend upon several different factors. Monte Carlo simulation is a probabilistic analysis tool that is used to simulate real-world scenarios. It is used to understand the impact of risk and uncertainty in financial, project, or engineering models.
Risk Analysis is a crucial tool that businesses use to identify risks and develop effective strategies to mitigate those risks. Monte Carlo simulation is an effective tool that can be used to analyze the risks associated with different business decisions. Monte Carlo simulation helps businesses make better decisions by enabling them to consider all possible outcomes and their probabilities.A Monte Carlo simulation is appropriate when the payoffs of a decision depend upon several different factors.
The model takes into account all possible outcomes and assigns probabilities to each one. This helps decision-makers assess the risks associated with different options and choose the one that offers the most potential for success. It is essential to note that Monte Carlo simulation is only effective when an accurate probability distribution for the payoffs can be estimated directly by the simulation. This is the main reason why it is best suited for scenarios where payoffs depend on several different factors.
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Did Sue draw this circle change into passive voice
Answers
Answer:
Was this circle drawn by Sue?
Explanation:
you are the administrator for a large organization that has started using azure. you need to use a microsoft azure monitoring tool to monitor devices and change settings. which of the following tools can you use?
Answers
The monitoring tool that I need to use to monitor device and change setting is azure iot central applications, as being the administrator of a large organization.
association, charity, or union. The term "organization" can be used to describe a person, a group, a company, or the process of creating or developing anything.
A wide range of legal entities exist, encompassing corporations, government, quasi organizations, political organizations, international institutions, armed forces, charities, for-profit businesses, partnership, cooperative, and academic institutions, among others.
A mixed organization is one that fulfills official services and generates commercial market activity concurrently in the public and private sectors. A volunteer-run organization is known to as a voluntary association.
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3. The owner of a specialty delicatessen buys baskets, decorates and fills them with food items, and
sells them as one of the products in the shop. The entrepreneur sells an average of 130 baskets a
month The basket supplier charges $0.50 per basket. The entrepreneur would like to reduce his
variable costs and has found a basket supplier who will charge only $0.40 per basket. How much
will the delicatessen owner save in a year by changing suppliers?
Answers
Answer:
$156
Explanation:
he old price per basket is $0.50 per basket
the new supplier has a price of $0.40 per basket
Savings per basket is $0.10 ($.50- $0.40)
The average sales per month are 130 baskets.
The average savings per months will be
=$0.10 x 130
=$13
yearly savings will be
=$13 x 12 months
=$156
Study the e-mail message below, analyzing the business style. (The subject line and first sentence are effective as written.) Select the most appropriate answer for each question. Questions 1 - 3 are worth 5 points each. Questions 4 - 8 are worth 3 points each. From: Beth Harmon, Director of Human Resources Sent: Friday, December 27, 2021 To: All Employees Subject: Bonus Vacation Day in 2022 for Every Employee (1) BusComm employees will receive an appreciation vacation day in 2022. (2) Our decision recognizes the best team of employees in the company's past history. (3) You have broken our previous sales record this past year. (4) You have also worked a lot of overtime recently. (5) Therefore, you will definitely enjoy your bonus vacation day. (6) You may use this bonus day during most months of 2022. (7) However, please do not schedule it during October because of our holiday production schedule. (8) We have attached a copy of our vacation request form. (9) It must be submitted at least one month before your requested date. (10) Also, it is important to write "bonus day" in the reason" box (11) We thank you in advance for your continued hard work. 1. What is the style problem in Sentence 7? Rewrite the sentence effectively, 2. Which sentence uses passive voice? Rewrite the sentence effectively. . 3. Which sentence contains an expletive? Rewrite the sentence effectively.
Answers
To rewrite the sentence effectively, it could be rephrased as: "The previous year saw a record-breaking sales performance by the company."
1. What is the style problem in Sentence 7? Rewrite the sentence effectively.The style problem in Sentence 7 is the use of negative wording. To rewrite the sentence effectively, it could be phrased positively as: "Please schedule your bonus vacation day for any month except October, due to our holiday production schedule."2. Which sentence uses passive voice? Rewrite the sentence effectively.Sentence 2 uses passive voice. It can be rewritten to be more active as: "We recognize the best team of employees in the company's past history with our decision."3. Which sentence contains an expletive? Rewrite the sentence effectively.Sentence 3 contains an expletive. To rewrite the sentence effectively, it could be rephrased as: "The previous year saw a record-breaking sales performance by the company."
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i will give $1000 to someone that can help me with this. and im being serious
Answers
Answer:
shell say to get your team together and lead if can do it do it, if you cant, don't
Explanation: you're the team leader you're supposed to be able to make decisions even the hard ones
What is the minimum amount they would have saved if they paid cash? (hint: think about their original intended purchase) Please explain how you calculated your answer
Answers
First, we need to determine the cost of the original intended purchase. This is the amount that would have been paid if no changes were made to the planned transaction. Let's call this amount "A."
Next, we need to know the actual amount paid when using cash. This is the sum that was paid after considering any discounts or price reductions for using cash as the payment method. Let's call this amount "B."
To find the minimum amount saved by paying in cash, we will subtract the actual amount paid (B) from the original intended purchase amount (A). In other words:
Minimum amount saved = A - B
Keep in mind that this calculation assumes there were no additional costs or fees associated with using cash. By understanding the difference between the original intended purchase amount and the actual amount paid when using cash, we can effectively determine the minimum amount saved through this payment method.
In summary, to calculate the minimum amount saved when paying in cash, subtract the actual amount paid (B) from the original intended purchase amount (A). This will give you the minimum savings achieved by choosing to pay with cash instead of another payment method.
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Which of the following is most likely to create a long-term trend?
A. Fashion
B. Entertainment
C. Television shows
D. Demographics
Answers
Demographics is most likely to create a long-term trend. Demographics is the study of the characteristics of human populations, such as age, sex, education, income, and race. The correct answer is option D.
These factors have a significant impact on consumer behavior, and thus, they can create long-term trends in the marketplace. As people age, their preferences change, and they tend to consume different products and services. For example, as the baby boomer generation has aged, there has been a trend towards products and services that cater to their needs, such as retirement communities, healthcare, and leisure activities.
Additionally, changes in education, income, and race can create new trends in consumer behavior. For example, if there is an increase in the number of people with higher education degrees, this could lead to a trend towards products and services that cater to their needs, such as high-tech gadgets, gourmet foods, and luxury vacations. Therefore, demographics is most likely to create a long-term trend. The correct answer is option D.
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pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15 % 32 % Bond fund (B) 9 % 23 % The correlation between the fund returns is 0.15. Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answers
The standard deviation of the portfolio is 7.09%.
What is the proportion of stock in minimum risky portfolio?= [(0.23)² - (0.32*0.23*0.15)] / [(0.32)² + (0.23)² - (2*0.32*0.23*0.15)]
= 0.31421708452
= 31.42%
What is proportion of bond fund in minimum risky portfolio?= 1 - 0.31421708452
= 0.68578291548
= 68.58%
What is the expected return of minimum risky portfolio?= 0.3142*15% + 0.6858*9%
= 0.04713 + 0.061722
= 0.108852
What is the standard deviation of your portfolio?= ((0.6858)² * (0.23)² * (0.3142)² * (0.33)²) + ((2 * 0.6858 * 0.3142 * 0.32 * 0.23 * 0.15))^0.5
= (0.00026747972 + 0.00475776218)^0.5
= 0.0050252419^0.5
= 0.0708889406
= 7.09%
Therefore, the standard deviation of the portfolio is 7.09%.
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What is the purpose of collateral in a secured loan?
Answers
Answer:
To reduce risks against default.
Background "Accounting is the language of business," has been a long-held truth for decades, but in that same spirit, it's important to remember that language changes over time. This couldn't be more true for the accounting profession. Technology has steadily optimized the common roles and tasks of accountants, with some of the largest leaps in technology eliminating those tasks and leaving professionals with more time than ever. https://www.cpapracticeadvisor.com/ And now, it appears inevitable that COVID-19 accelerated change and forced us to reconsider the role of professional accountants.
100 words Answer needed!
Q1.Identify future required skills and areas of demand for our skills.
Q2.Discuss what aspects of ethnics and regulatory framework should be considered.
Answers
Future required skills and areas of demand for professional accountants include advanced technological proficiency, data analytics, and a strong understanding of emerging regulatory frameworks. Ethical considerations should encompass transparency, integrity, and adherence to professional standards.
As technology continues to shape the accounting profession, accountants must develop advanced technological proficiency. They need to be familiar with accounting software, data management systems, and automation tools to streamline processes and improve efficiency.
Additionally, a strong grasp of data analytics is crucial as accountants are increasingly required to interpret and analyze large volumes of financial data to provide meaningful insights and strategic recommendations.
With the evolving regulatory landscape, professional accountants must stay up-to-date with emerging frameworks.
This includes being knowledgeable about new accounting standards, tax regulations, and compliance requirements. They should possess the ability to navigate complex regulatory environments and ensure organizations adhere to ethical practices.
Ethics play a pivotal role in the accounting profession. Accountants must maintain the highest levels of integrity, objectivity, and independence to uphold public trust.
They should promote transparency in financial reporting and disclosure, ensuring accuracy and completeness of information. Upholding professional standards and codes of conduct is essential in fostering confidence in the profession and maintaining ethical practices.
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