A stock has an expected return of 9.8 percent and a beta of 1.30, and the expected return on the market is 9.10 percent. What must the risk-free rate be?

Answers

Answer 1

To determine the risk-free rate, we can use the Capital Asset Pricing Model (CAPM) formula, which relates the expected return of a stock to its beta, the expected return on the market, and the risk-free rate.

The formula is as follows: Expected Return = Risk-Free Rate + Beta * (Expected Return on the Market - Risk-Free Rate)

Given:

Expected Return of the stock = 9.8%

Beta = 1.30

Expected Return on the Market = 9.10%

Let's denote the risk-free rate as "r."

9.8% = r + 1.30 * (9.10% - r)

Now, let's solve for "r":

9.8% = r + 11.83% - 1.30r

Combining like terms:

9.8% - 11.83% = -0.30r

-2.03% = -0.30r

Dividing both sides by -0.30:

r ≈ (-2.03%) / (-0.30) ≈ 6.77%

Therefore, the risk-free rate must be approximately 6.77%.

Please note that percentages have been converted to decimals for the calculations.

Learn more about market here

https://brainly.com/question/25309906

#SPJ11


Related Questions

In the new-product development process, the __________ stage involves specifying the product features and marketing strategy along with making financial projections needed to bring it to market.
idea generation
screening and evaluation
business analysis
development
commercialization

Answers

In the new-product development process, the business analysis stage involves specifying the product features and marketing strategy along with making financial projections needed to bring it to market. So the correct answer is option c.

This stage is a critical part of the overall process, as it involves conducting a thorough analysis of the new product idea to ensure its feasibility and potential for success. This includes assessing the market demand, competition, costs, and potential revenue streams. Once the business analysis is complete, the new-product idea moves on to the screening and evaluation stage, where it is further refined and assessed for its potential to meet customer needs and achieve business objectives. Finally, the product is brought to market through the commercialization stage, which involves implementing the marketing strategy and launching the product to the target audience. Throughout the entire process, idea generation and strategy development are key components that drive the success of the new-product development effort. Hence the correct answer is option c.

know more about business analysis here : https://brainly.com/question/15319536

#SPJ11

Gloria has a coffee shop and has been in business for years. She has many
customers that are regulars, but she's looking to acquire more. So far, she has
signs around the neighborhood, a TV commercial, an ad in the newspaper,
and coupons sent to everyone in the area. Which form of advertising can she
utilize now that she hasn't already?
A. Radio
B. TV
C. Signage
D. Print

Answers

Answer:

a. radio

Explanation:

The form of advertising that Gloria can utilize now that she hasn't already is Radio.

Thus, Option A is correct.

What do you mean by advertising?

Advertising is described as a strategy used to gain attention to a certain product or service among the general population. A viewership is exposed to a product, brand, or service through the use of an advertisement in order to grab their attention, promote interaction, and boost sales.

Through advertising, new products, services, and ideas are introduced to consumers. In this case, it makes a reference to the introduction of items and the search for mass consumers. Advertising is a sort of marketing communication that is used to market or sell a company's goods or services. Advertising's Latin root means "to draw people's attention toward."

For more information about advertising refer to the link:

https://brainly.com/question/3163475

#SPJ5

What is an appraisal? Why is it usually included in the closing costs for buying a home?

Answers

The procedure through which a real estate evaluator attempts to discover the fair market value of a home is called a home appraisal. They are frequently used to calculate property taxes, appraisals are typically required in regions.

What is the closing cost?

Additional expenses and charges that must be paid at the end of a transaction in real estate that is not included in the property's purchase price is referred to as Closing cost.

A home appraisal is employed to determine a property's worth. Lenders impose these fees in exchange for approving your loan.

Prior to comparing a home to actually acquired properties in the local housing market, licensed real estate evaluators to look at its features and state.

Learn more about Closing costs, here:

brainly.com/question/1084194

#SPJ1

3.1.5. Discuss the characteristics of a mixed Economy.​

Answers

Answer:

A mixed economy has three of the following characteristics of a market economy. First, it protects private property. Second, it allows the free market and the laws of supply and demand to determine prices. Third, it is driven by the motivation of the self-interest of individuals

Explanation:

good luck

please mark me as a brainliest

A very large company would be most likely to have a(n)
Blank its accounting department.
at the head of

Answers

Answer:

manager or head of accounting that makes the most sense to me

Explanation:

What is the difference between a cash flow statement and a Budget?

Answers

Answer:

See below

Explanation:

A cash flow statement is among the financial statement prepared by a company at the end of every financial period. It details the cash movements, in and out of business. The cash flow statement tells the amount of cash that a business holds at any particular time. It shows whether a company generates sufficient cash to pay debts and fund its operations.

A budget is a plan showing expected incomes and expenses for a financial period. It indicates the income an individual, firm, or country expects to receive in a period and how the income will be spent. A budget is also known a plan of expenditure.

can a 14 year old work? where?

Answers

Answer:

Yes!!

Explanation:

They can work at Chick-Fil-A!!

They can be a babysitter

wash cars

and more!

What are self-service BI tools?
Business intelligence tools that do not require any particular BLANK
expertise are called self-service tools.

Answers

Answer:

Technical

Explanation:

100% on test

Which of the following types of labor costs will NEVER flow through the inventory account?
a. Assembly labor
b. Plant supervision
c. Material handling
d. Sales commissions

Answers

The type of labor cost that will NEVER flow through the inventory account is d. Sales commissions.

Sales commissions are typically not considered part of the inventory cost. They are considered a selling expense and are accounted for separately as a cost of generating sales. Sales commissions are usually based on the value of sales or specific sales targets achieved and are more closely associated with the selling function rather than the cost of producing or acquiring inventory.

On the other hand, assembly labor, plant supervision, and material handling costs are types of labor costs that can be considered part of the inventory cost. These costs are directly related to the production or acquisition of inventory and are typically included in the cost of goods sold or inventory valuation. They are necessary for the manufacturing or procurement process and are directly associated with the creation or preparation of inventory for sale.

To learn more about “inventory” refer to the https://brainly.com/question/24868116

#SPJ11

Which trim level is available exclusively for customers who participate in the 2023 ariya reservation program?.

Answers

The PLATINUM+ e-4ORCE is the trim level that is available exclusively for customers who participate in the 2023 Ariya reservation program.

What is the Ariya reservation program?

The reservation program is organized by Nissan firm to the public.

In conclusion, the PLATINUM+ e-4ORCE is said to be the trim level that is available exclusively for customers who participate in the 2023 Ariya reservation program.

Read more about reservation program

brainly.com/question/597997

#SPJ1

in its first month of operations, sheridan company made three purchases of merchandise in the following sequence: (1) 500 units at $4, (2) 600 units at $5, and (3) 700 units at $7.

Answers

The average unit cost for Sheridan company made three purchases of merchandise is $5.50.

To calculate the average unit cost, we need to first determine the total cost of all the purchases and the total number of units purchased.

For the first purchase of 500 units at $4, the total cost is 500 x $4 = $2,000.

For the second purchase of 600 units at $5, the total cost is 600 x $5 = $3,000.

For the third purchase of 700 units at $7, the total cost is 700 x $7 = $4,900.

Therefore, the total cost of all the purchases is $2,000 + $3,000 + $4,900 = $9,900.

The total number of units purchased is 500 + 600 + 700 = 1,800.

To calculate the average unit cost, we divide the total cost by the total number of units:

$9,900 / 1,800 = $5.50

Therefore, the average unit cost is $5.50.

Note: The question is incomplete. The complete question probably is: In its first month of operations, Sheridan company made three purchases of merchandise in the following sequence: (1) 500 units at $4, (2) 600 units at $5, and (3) 700 units at $7. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)

Learn more about Unit cost:

https://brainly.com/question/30205161

#SPJ11

Where does the old spanish national historic trail begin and end.

Answers

The Old Spanish trail begins in Santa Fe, New Mexico and ends in Los Angeles, California. :)

What is the term used when a company offers stock to its employees?A) stock allocationB) stock optionC) stock grantD) stock disposition

Answers

The term used when a company offers stock to its employees is C) stock grant.

A stock grant is a type of compensation offered by a company to its employees, where the employees receive shares of the company's stock. The stock grant is usually granted as a form of incentive or reward to motivate employees, align their interests with the company's performance, and retain talent within the organization.

Unlike stock options, which give employees the right to purchase shares at a predetermined price in the future, a stock grant provides employees with actual ownership of the shares. Once the stock grant is given to employees, they become shareholders of the company and may benefit from any increase in the stock's value over time.

Stock grants are often subject to certain vesting periods and conditions, which may require employees to remain with the company for a specified period or achieve specific performance goals to fully own the granted shares.

Overall, stock grants are a common method used by companies to provide employees with a direct stake in the company's success and align their interests with the long-term growth and performance of the organization.

For more such question on stock

https://brainly.com/question/31364437

#SPJ11

Neolithic people practiced metallurgy.
How did the advancement in technology. Benefit. Early humans

Answers

Answer:

the answer is D

Explanation:

Answer:

D. Metal was used to make stronger items that lasted longer

Explanation:

Did it on Edg.2020

Please mark brainliest

Complete the following sentence. Remember to spell correctly.
When supply exceeds demand, a market
occurs

Answers

Answer:

bear

Explanation:

Answer:

bear

Explanation:

hope this helps ;)

What is the final step for creating a chart in PowerPoint?

Answers

Answer:

step 1: click instead> Chart

step 2: click th3 chart type and then double click th3 chart you want.

step 3: in th3 worksheet that appears, replace the placeholder data with your own information.

step 4: when you insert a chart, small buttons appear next to the upper right corner.

step 5: when finished, close th3 worksheet

Assume all markets are in long-run equilibrium. The market quantity supplied in a duopoly would be ________ the market quantity supplied in a monopoly and ________ the market quantity supplied in a competitive market. a. less than or equal to; less than or equal to b. less than or equal to; greater than or equal to c. less than; equal to d. greater than; equal to e. greater than or equal to; less than or equal to

Answers

Answer:

greater than or equal and less than or equal

Explanation:

We assume that all the market belong from long run equilibrium.So the quantity supplied of the market in a duopoly should be either greater or equivalent to the quantity supplied of the market in the monopoly and it should be less or equivalent to the quantity supplied of the market in the competitive market as it is the under competitive market where P = mc

And, under monopoly, there is the condition of the profit maximiation i.e. MR = MC

A shoe factory sells a certain brand of shoes for $50 per pair. After a celebrity
is seen wearing the shoes at an awards show, demand for the shoes goes up
rapidly. As a result, the factory is able to increase the price to $300 per pair.
According to the law of supply, what would you expect to happen next?
O A. The factory would try to decrease demand for the shoes.
O B. The factory would try to increase its supply of the shoes.
O C. The factory would decrease the quantity supplied of the shoes.
O D. The factory would try to lower the equilibrium price for the shoes.

Answers

Answer:

B

Explanation:

The factory would most likely take advantage of this situation, and try to sell more of the shoes at a higher price, for the greater profit.

A,B and D do not make sense as the factory would then either be making less money or not profiting at all.

What would you expect to happen next is B. The factory would try to increase its supply of the shoes.

Based on the law of supply the  factory would tend to produce or manufacture more of the shoes as the demand for the shoes has .increased

Therefore The higher the demand for the shoes the higher the supply will be  which inturn means that the company will have to increase their production in order to meet the needs of their consumer.

This will lead to increase in profit for the company as they have increase the price of the shoes from $50 to $300 per pair due to increase in demand.

Inconclusion What would you expect to happen next is B. The factory would try to increase its supply of the shoes.

Learn more here:

https://brainly.com/question/21494983

rent received Rs. 10,000/-​

Answers

Answer:

Okay, but where is the question or it's free points?

Here for points,please ignore me.

Your project team has expressed their communal position that they would prefer not to have a review meeting at the end of the project. As project manager, how should you respond to show the value of this meeting?

Answers

How you respond should show the value of this meeting is: To tell the team that lessons learnt from the project process can be used in other projects.

A project manager is a person whose sole responsibility is to:

Plan the projectDirect the projectManage the projectMonitor the projectExecute the project etc

Since the team said they would not have a review meeting at the end of the  completion of the project the best decision as a project manager is to tell the team member that lessons learnt from the project process can be used in other projects since the project is a special or unique project.

Inconclusion the project manager should tell the team that lessons learnt from the project process can be used in other projects.

Learn more about project manager here:https://brainly.com/question/6500846

My response to the expressed communal position of the project team's  preference of not holding project review meetings is to stress its importance with regard to lessons for future projects.

The lessons that come from review meetings help the team to correct mistakes, realign processes, and improve performance.

Thus, since review meetings help to re-enforce the team's learning, I will reassure the team that the meeting would not take more time than necessary.  I will also ensure that each team member participate actively.

Learn more about project review meetings here: https://brainly.com/question/9087173

was demolished at a cost of $8,200; the salvaged materials were sold for $2,200. additional expenditures before construction began included $1,500 attorney's fee for work concerning the land purchase, $5,500 real estate broker's fee, $9,100 architect's fee, and $16,000 to put in driveways and a parking lot. (a) determine the amount to be reported as the cost of the land. cost of the land $enter the cost of the land in dollars (b) for each cost not used in previous part, indicate the account to be increased.

Answers

Cost transaction options are given below:

1) cost of a plant can be measured in cash transaction is acquisition price can be treated as cost in cash transaction

16) cost of the plant in Non-cash transaction can be measured by [cash Equivalent price is equal to the fair market value of the asset given up (1) the fail market value asset received which even is mole the clearly identifiable. can be treated as cost in non-cash transaction.

gain (of) loss to calculate gain(d) loss on the sale an asset we should compare the cash received for the asset and to compare with the book (1) carrying value less the amount of depreciation then the difference amount can be treated as gain.

For more information on cost transactions visit
https://brainly.com/question/13767005
#SPJ4

For the following is the demand function answer the following questions. Q d

=60−0.3p+0.1p s

+0.5Y Where Q d

is the quantity demanded and p is the price of the product and p s

is the price of the substitute and Y is income measured in thousands. Simplify the demand curve if price of substitute $10 is and Income is 60 thousand and the price of the product is $50. 96 126 76 90

Answers

The quantity demanded (Qd) when the price of the product is $50, the price of the substitute is $10, and the income is $60,000 is 76.

To simplify the demand curve, we substitute the given values into the demand function:

Qd = 60 - 0.3p + 0.1ps + 0.5Y

Given:

ps = $10 (price of the substitute)

Y = $60,000 (income)

p = $50 (price of the product)

Substituting the values into the demand function:

Qd = 60 - 0.3($50) + 0.1($10) + 0.5($60,000)

= 60 - 15 + 1 + 30,000

= 76

Quantity demanded (Qd) refers to the amount of a product or service that consumers are willing and able to purchase at a given price and within a specific time period. It represents the relationship between the price of a product and the quantity consumers are willing to buy. The quantity demanded is influenced by various factors, including price, income, prices of related goods, consumer preferences, and market conditions. As the price of a product decreases, typically the quantity demanded increases, following the law of demand. Understanding the concept of quantity demanded is crucial for businesses to make pricing and production decisions, as well as for analyzing consumer behavior and market dynamics.

Learn more about Quantity demanded (Qd)  here:

https://brainly.com/question/14780979

#SPJ11

Byron Books Inc. recently reported $9 million of net income. Its EBIT was $16.1 million, and its tax rate was 25%. What was its interest expense

Answers

To find the interest expense of Byron Books Inc., we can start with the formula for calculating net income:

Net Income = EBIT - Interest Expense * (1 - Tax Rate)

Rearranging the formula, we can solve for interest expense:

Interest Expense = (EBIT - Net Income) / (1 - Tax Rate)

Given that Byron Books Inc. reported a net income of $9 million, EBIT of $16.1 million, and a tax rate of 25% (or 0.25), we can substitute these values into the formula:

Interest Expense = (16.1 million - 9 million) / (1 - 0.25)

Interest Expense = 7.1 million / 0.75

Interest Expense = $9.4667 million or approximately $9.47 million

Therefore, the interest expense of Byron Books Inc. is approximately $9.47 million.

Learn more about interest expense  here:

https://brainly.com/question/29492215

#SPJ11

Final answer:

The interest expense of Byron Books Inc. is $7.1 million.

Explanation:

Interest expense is a financial cost that a company or individual incurs when borrowing money. It's typically associated with loans, bonds, or credit lines. This expense represents the amount paid to the lender as compensation for the use of their funds. For businesses, it's a deductible expense, reducing taxable income. Monitoring and managing interest expense is crucial for financial health, as excessive interest payments can strain cash flow and negatively impact profitability. Byron Books Inc. recently reported $9 million in net income. Thus,

To find the interest expense, we can use the formula:

Interest Expense = EBIT - Net Income

Substituting the given values:

Interest Expense = $16.1 million - $9 million

= $7.1 million

Learn more about Interest Expense here:

https://brainly.com/question/33177136

#SPJ12

Which tend to be more volatile, short- or long-term interest rates?.

Answers

Answer:

Short-term rates

Explanation:

are more volatile than long-term rates and move more quickly than long-term rates

Becker Bikes manufactures tricycles. The company expects to sell 530 units in May and 660 units in June. Beginning and ending finished goods for May are expected to be 185 and 150 units, respectively. June's ending finished goods are expected to be 160 units. Each unit requires 1.5 direct labor hours and Becker's hourly labor rate is $120 per hour. Compute Becker's direct labor budget for May and June.

Answers

Becker's direct labor budget for may is $89,700 and for june is $120,600.

To compute becker's direct labor budget for may and june, we need to calculate the total direct labor hours required for producing the expected number of units and then multiply it by the hourly labor rate.

for may:

expected units to be produced = expected sales + ending finished goods - beginning finished goods

                          = 530 + 150 - 185

                          = 495 units

total direct labor hours for may = expected units * direct labor hours per unit

                              = 495 * 1.5

                              = 742.5 hours

direct labor budget for may = total direct labor hours * hourly labor rate

                          = 742.5 * $120

                          = $89,700

for june:

expected units to be produced = expected sales + ending finished goods - beginning finished goods

                          = 660 + 160 - 150

                          = 670 units

total direct labor hours for june = expected units * direct labor hours per unit

                               = 670 * 1.5

                               = 1,005 hours

direct labor budget for june = total direct labor hours * hourly labor rate

                           = 1,005 * $120

                           = $120,600

Learn more about budget here:

https://brainly.com/question/31952035

#SPJ11

A friend comes to you seeking advice. He got into trouble at work for not being a team player. He really likes his job and isn’t quite sure what to do. What suggestions would you give to your friend to help him improve? How might he respond to his boss? paragraph... hurry need it by tomorrow

Answers

Answer:

well he should apologize to his boss and everyone he wasn't a team player to because someone must have told his boss, and then proceed to say he with work with others better and mean it. hope this helps your "friend"

Explanation:

The response to hie boss is advice by a friend is that he should justify to his boss and everyone else who knew he wasn't a team player, and then proceed to say he will work better with others and mean it.

What is the team player?

Effective team players hold themselves and others accountable. They accept responsibility for their actions or mistakes and comprehend how their decisions affect the team.

Adapting to change is an essential component of team success.  If they have the backing of a team, people are more likely to take calculated risks that lead to innovation.

Working as part of a team promotes personal development, increases job satisfaction, and reduces stress. In the given case, his boss's response is advice from a friend that he should justify to his boss and everyone else who knew he wasn't a team player, and then proceed to say he is a team player.

Learn more about the team player, refer to:

https://brainly.com/question/23857247

#SPJ2

What expenses do you need to budget for if you choose to buy a home? Check all that apply.

A. a mortgage payment
B. a rent payment
C. homeowners insurance
D. renters insurance
E. property taxes
F. a security deposit
G. a down payment
H. utility payments

Answers

If you choose to buy a home, you will need to budget for the following expenses:

A mortgage payment (A): This is the monthly payment you make to the lender to pay off the loan you took out to purchase the home. It typically includes both the principal (the amount you borrowed) and the interest (a fee charged by the lender for lending you the money).Homeowners insurance (C): This insurance protects your home and belongings in the event of damage from natural disasters, accidents, or theft. It is typically required by mortgage lenders and is usually paid for annually or semi-annually.Property taxes (E): These are taxes that you pay to the government based on the value of your property. The tax rate and frequency of payment vary depending on where you live.A down payment (G): This is the initial payment you make towards the purchase of your home, which is typically a percentage of the home's purchase price. The larger the down payment, the lower your monthly mortgage payment will be.Utility payments (H): These are payments for services such as electricity, water, gas, and internet, which you will need to pay monthly.

You do not need to budget for a rent payment or renters insurance if you are buying a home. However, if you are renting a home or apartment, you will need to budget for rent payments and renters insurance. A security deposit may also be required when renting, which is typically a one-time payment equal to one month's rent.

Answer:

What expenses do you need to budget for if you choose to buy a home? Check all that apply.

✔️ a mortgage payment

❌ a rent payment

✔️ homeowners insurance

❌ renters insurance

✔️ property taxes

❌ a security deposit

✔️ a down payment✔️ utility payments

I Took Assignment And Have a Nice Day.

Exhibit 9.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Assume that the dividend payout ratio will be 75 percent when the rate on long-term government bonds falls to 8 percent. Because investors are becoming more risk averse, the equity risk premium will rise to 7 percent and investors will require a 15 percent return. The return on equity will be 12 percent. Refer to Exhibit 9.2. What is the expected sustainable growth rate

Answers

Answer:

3%

Explanation:

Expected sustainable growth rate = (1 - Payout ratio) * Return on Equity

Expected sustainable growth rate = (1 - 0.75) * 12%

Expected sustainable growth rate = 0.25 * 0.12

Expected sustainable growth rate = 0.03

Expected sustainable growth rate = 3%

So,  the expected sustainable growth rate is 3%

Could someone help me please?

Answers

Answer: Yes Definitely. But i need the question

Explanation:

you can get the solution on Brainly straightly.

How important is money

Answers

Answer:

very important

Explanation:

money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.

Other Questions
(Related to Checkpoint 5.5) (Solving forn)How many years will it take for$520to grow to$1,089.53if it's invested at6percent compounded annually?Question content area bottomPart 1The number of years it will take for$520to grow to$1,089.53at6percent compounded annually isenter your response hereyears. (Round to one decimal place.) Does the point (7, 8) satisfy the equation y = x? Compute the expectation E[XY ]. What value of rho makes it holdthat E[XY ] = E[X]E[Y].1. Let random variables X and Y are distributed as the joint normal distribution, whose density f is given as fX,Y(x, y) = 1/2 1-p^2 exp{ - 1/ - 2(1 p2) (x2 + y2 2pxy) 3.Complete the sentences below. How did the Silk road help spread the religions of Hinduism and Buddhism? SMART PEOPLE HELP PLEASE A Question 56 (3 points) Retake question Consider two charged particles, one with a charge of -1.6 x 10-19 C and the other with a charge of +1.12 x 10-18 C separated by a distance of 0.0015 m? What el Courts can allow ______ evidence to ______ the missing parts, while not modifying the written agreement in any substantial way. Prairie soils (mollisols) are _______. A. Poor in organic matter b. Easy to cultivate and fertile c. Poor in mineral nutrients d. Difficult to cultivate but fertile Please select the best answer from the choices provided A B C D. All of the following are thought to contribute to the changes in Earth's climate except:a.an increase in solar energy due to an increase in sun spotsb.an increase in volcanic eruptionsc.changes in the Earth's position relative to the sund.an increase in pollen dust in the atmospherePlease select the best answer from the choices providedABCD Let y = 2(x 3)2 6.Part A: Is the given relation a function? Is it one-to-one? Explain completely. If it is not one-to-one, determine a possible restriction on the domain such that the relation is one-to-one. (5 points)Part B: Determine y1. Show all necessary calculations. (5 points)Part C: Prove algebraically that y and y1 are inverse functions. (5 points) 13. A car travels at a speed of 55 km/h. Find the distance travelled by the car in 12minutes 30 seconds, giving your answer in meters. Which field of psychology includes the following concepts: figure-ground relationship, law of continuity, and principle of closure?a.biometricb. Gestaltc. Paciniand. somatosensory How do hollow bird bones help them fly? please help im freaking out because this is due in 5 minutes Please help !!!!Explain why some seedless plants reproduce only asexually during dry times of the year. List the details of all rooms at the grosvenor hotel, including the name of the guest staying in the room, if the room is occupied. The ________ of publicity photos should be good as they are reproduced in a variety of formats. what is the inverse of y=log(x-2) What are the solutions to the equation?x^2 + 6x = 40