A stock has a beta of 1.7. The expected return on the market is 8% and T-bills are yielding 2%. What is the expected return on the stock? show all calculations.
a 11.50%
b 10.95%
c 12.20%
d 10.00%
e 12.00%

Answers

Answer 1

Beta is a metric that reflects the sensitivity of an asset's return to the market's return. Beta is frequently employed in capital asset pricing model (CAPM) calculations, which are used to calculate the anticipated return of an asset given the return of the market. The expected return on the stock is 12.2%. Hence, the correct option is c) 12.20%.

The anticipated return on a stock is determined by using the capital asset pricing model (CAPM), which includes the risk-free rate, expected market return, and beta. The following is the formula for the capital asset pricing model (CAPM):E(Ri)=Rf + [E(Rm)-Rf] x βi, where:E(Ri) = expected return on stock iRf = risk-free rate (2%)E(Rm) = expected return on market (8%)βi = beta of stock iLet's put the given values into the formula:E(Ri) = 2% + (8% - 2%) x 1.7E(Ri) = 2% + (6%) x 1.7E(Ri) = 2% + 10.2% = 12.2%Therefore, the expected return on the stock is 12.2%.

To know more about capital asset pricing model visit:

https://brainly.com/question/32625782

#SPJ11


Related Questions

What happens when Fed Reserve increases interest rates?

Answers

The Fed aims to raise the federal funds target rate in order to boost the cost of lending across the economy.

What are federal funds?

Federal funds refer to the money that the US federal government allocates to different departments and programs. These funds are raised through taxation, borrowing, or selling of assets, and are distributed to various government agencies, states, and local communities. They are used to finance various public services, such as healthcare, education, infrastructure, and social welfare programs, among others. Federal funds are an essential part of the government's economic policy, as they help to stabilize the economy during times of recession and provide financial assistance to those in need. The allocation and management of federal funds are overseen by various federal agencies, such as the Department of Treasury, the Office of Management and Budget, and the Federal Reserve.

To learn more about federal funds, visit:

https://brainly.com/question/7450303

#SPJ4


9. If you found that you were in financial trouble because of credit and had great difficulty paying your monthly bills, what would you do?

Answers

Answer:

You would have to cut down on some luxuries, like lots of foods, amusement parks, shopping trips, etc. If you have have extra hours, work more hours, quite possibly take another job.

Explanation:

What is vulnerability? Give examples of vulnerability and the
mitigation method can be taken to remove it.

Answers

Vulnerability refers to a weakness or flaw in a system, process, or infrastructure that can be exploited by malicious actors to gain unauthorized access, disrupt operations, or compromise data integrity and confidentiality. Vulnerabilities can exist in software, networks, hardware, and even human factors.

Software Vulnerability: A software application may contain coding errors or design flaws that can be exploited.

Network Vulnerability: Weak network configurations, unsecured wireless networks, or outdated protocols can leave networks vulnerable.

Social Engineering Vulnerability: Humans can be a weak link in security.

Hardware Vulnerability: Flaws or weaknesses in hardware components can create vulnerabilities. For example, a hardware keylogger inserted between a keyboard and computer can record keystrokes.

Learn more about Vulnerability  here:

https://brainly.com/question/15047647

#SPJ11

if you sell shares of a stock 7 months after buying it and make a $900 profit, how will this $900 be taxed?

Answers

Answer:

Its called a short term gain and it will be taxed as your regular income.

Explanation:

The taxation of stock sales depends on various factors, including the holding period and the investor's tax bracket. In the United States, the holding period determines whether a gain or loss is classified as short-term or long-term. Short-term gains are taxed as ordinary income, while long-term gains are taxed at a lower capital gains tax rate.

Assuming the stock was held for less than a year (i.e., 7 months), any profit made from the sale would be considered a short-term capital gain. The exact tax rate for short-term capital gains depends on the investor's tax bracket. For example, if the investor's tax bracket is 22%, the $900 profit would be subject to a tax of $198 (22% of $900).

It's worth noting that taxes on stock sales can be complex, and other factors, such as the cost basis and any losses carried over from previous years, can also affect the tax calculation. It's always a good idea to consult with a qualified tax professional for specific tax advice.

Also I'm just a child answering the question if a man can do it then i can do it lol.

When selling shares of a stock, the profit or loss from the sale is considered a capital gain or loss and subject to capital gains taxes.

What is Capital gain ?

The length of time the shares were held before being sold, also known as the holding period, determines whether the capital gains tax rate is short-term or long-term.

In this scenario, since the shares were held for 7 months, the gain would be considered a short-term capital gain and taxed at the ordinary income tax rate. The amount of tax owed on the gain depends on the taxpayer's income and tax bracket.

It is worth noting that the tax code's rules on capital gains taxes can be complex, and it is advisable to consult a tax professional for specific guidance. Additionally, different types of accounts, such as a 401(k) or an IRA, may have different tax implications when selling shares.

Learn more about Capital gain here

https://brainly.com/question/29993033

#SPJ2

What is the main reason for employing contractionary fiscal policy in a time of strong economic growth?

Answers

The main reason for employing contractionary fiscal policy in a time of strong economic growth is to keep prices from rising too much or too rapidly

Fiscal policy is the use of public expenditure and taxation to affect the economy, particularly macroeconomic conditions. These include employment, inflation, economic expansion, and the total demand for goods and services.

The government may reduce tax rates or boost spending during a recession to boost demand and the economy. On the other hand, it can increase rates or reduce spending to slow down the economy in order to battle inflation. Monetary policy, which is implemented by central bankers rather than elected government officials, is sometimes contrasted with fiscal policy.

To know more about fiscal policy

brainly.com/question/14042438

#SPJ4

If the profit from the sale of x units of a product is P = 90x - 200 - x^2, a)What level(s) of production will yield a profit of $1,200? b)Estimate the amount of production that would produce the maximum profit

Answers

a) The level(s) of production that will yield a profit of $1,200 can be determined by setting the profit equation equal to $1,200 and solving for x.

b) To estimate the amount of production that would produce the maximum profit, we can find the vertex of the profit function.

a) To find the level(s) of production that will yield a profit of $1,200, we set the profit equation equal to $1,200 and solve for x. The profit equation is P = 90x - 200 - x^2. Setting P = 1,200 gives us the equation 90x - 200 - x^2 = 1,200. Rearranging the equation, we have x^2 - 90x + 400 = 0. Solving this quadratic equation will give us the production levels that yield a profit of $1,200.

b) To estimate the amount of production that would produce the maximum profit, we need to find the vertex of the profit function. The profit function is given by P = 90x - 200 - x^2. The vertex of a quadratic function is the point where the function reaches its maximum or minimum value. In this case, since the quadratic term has a negative coefficient (-1), the profit function is a downward-opening parabola, and the vertex represents the maximum profit.

To find the x-coordinate of the vertex, we can use the formula x = -b/(2a), where a and b are the coefficients of the quadratic equation. In this case, a = -1 and b = 90. Substituting these values into the formula, we get x = -90/(2*(-1)) = 45. Therefore, the estimated amount of production that would produce the maximum profit is 45 units.

In summary, to achieve a profit of $1,200, we need to solve the quadratic equation obtained by setting the profit equation equal to $1,200. Additionally, the estimated amount of production that would yield the maximum profit is approximately 45 units, which corresponds to the x-coordinate of the vertex of the profit function.

Learn more about maximum profit

brainly.com/question/33398507

#SPJ11

Help need ASAP!

Anita wants to start an online business and not use her real name. What type of form will Anita need to complete when opening a business?

A. Franchise
B. DBA (doing business as)
C. Trademark
D. Corporation

Answers

Answer:

C. Trademark

Explanation:

.

Sarah buys 500 shares of stock at $18 and sells the holding for a capital gain of $3,000. What was the share price at the time of the sale?

Answers

Answer:

$24

Explanation:

500 * 18 = $9000 worth of stock initially.

She sells with a $3000 gain, which means the value of the stock is $12000

12000/500 = $24

An airline promotion to business travelers is based on the assumption that two-thirds of business travelers use a laptop computer on overnight business trips.
a.) state the hypotheses that can be used to test the assumption.
h0:p
ha:p
b.) what is the sample proportion from an american express sponsored survey that found 365 of 543 business travelers use a laptop computer on overnight business trips (to 2 decimals)?
c.) what is the p-value (to 4 decimals)?

Answers

The answers of the airline promotion questions are: a)  H0: p Ha: p ≈ 0.67 The significance level, α=0.05. b) = 0.67 c) p-value = P(z>0) = 0.5000

There is insufficient data to conclude that more than two thirds of business travelers utilize laptop computers when on overnight business trips. Promotion includes a wide range of activities aimed at increasing public awareness or advancing a product. When referring to a career, promotion is raising a worker's rank or position within a hierarchical system. Promotion, as used in marketing, describes raising interest in a product through marketing or a lower price. It can include increasing an employee's position, spreading word about certain product bargains, or generating interest in undervalued stocks. In the marketing industry, they are routinely given. The most frequent usage of the phrase is in reference to a work promotion.

To learn more about Promotion click here

brainly.com/question/20472836

#SPJ4

f(5) =
f(3) =
f(-5) =
f(-3) =

Answers

Answer:

53636363633636336366363

an economist would say that the benefits of regional integration are determined by:

Answers

An economist would say that the benefits of regional integration are determined by the amount of trade creation.

Regional integration is when two or more countries come together in order to agree to work together for the benefit of all countries involved in the integration.

Forms of regional integration

Free trade area: this is when countries agree to remove the barriers to trade. Customs union: this when restrictions to trade are removed for both member countries and non member countries. Common market: in addition to the removal of restrictions to trade, there is also free movement of labour among member countries. Economic union: member countries adopt similar economic policies.

Benefits of regional integration

It increases market efficiency. It enhances global integration.

A similar question was answered here: https://brainly.com/question/18942833

If the price is raised to $7, what would be the result in the market place? (Surplus, Shortage, or Equilibrium).

Answers

Surplus
Because the price is rising.

What should you do before giving contact information for your references to a potential employer? A. Notify references and get their permission. B. Write a follow-up letter. C. Research the company on its website. D. Introduce your references to each other. picor provided​

Answers

Answer is A - notify reference and get their permission

Explanation

If you notify and get permission from your reference, they will be prepared with a great response when they get a call from your potential employer.

explain processes of distribution channels in economics​

Answers

Answer:

Distribution channels in economics refer to the various intermediaries that are involved in the movement of goods and services from the producer to the final consumer. These intermediaries play a critical role in ensuring that products reach the end-users in the most efficient and effective manner possible.

The following are the processes involved in distribution channels in economics:

1. Producer: The first step in the distribution channel is the producer. The producer is the entity that creates the product or service. The producer may be a manufacturer, a farmer, or a service provider.

2. Wholesaler: The next step in the distribution channel is the wholesaler. The wholesaler buys products in bulk from the producer and then sells them to retailers. Wholesalers are often used when the producer cannot sell directly to retailers due to logistical or other reasons.

3. Retailer: The retailer is the next step in the distribution channel. The retailer buys products from the wholesaler or directly from the producer and then sells them to the final consumer. Retailers are often used when the producer cannot sell directly to the final consumer due to logistical or other reasons.

4. Consumer: The final step in the distribution channel is the consumer. The consumer is the end-user of the product or service. The consumer buys the product or service from the retailer.

5. Logistics: Logistics is an important process in the distribution channel. Logistics involves the movement of products from the producer to the retailer or directly to the consumer. Logistics includes transportation, storage, and delivery.

6. Marketing: Marketing is another important process in the distribution channel. Marketing involves promoting the product or service to potential consumers. Marketing includes advertising, public relations, and sales promotions.

7. After-sales service: After-sales service is the final process in the distribution channel. After-sales service involves providing support and assistance to consumers after they have purchased the product or service. After-sales service includes warranties, repairs, and customer service.

In conclusion, the distribution channel is a critical component of the economy. It ensures that products and services reach the end-users in the most efficient and effective manner possible. The various processes involved in the distribution channel include the producer, wholesaler, retailer, consumer, logistics, marketing, and after-sales service.

If a bond is trading at a premium, what is the relationship between the bond's coupon rate, current yield and yield to maturity?

Answers

Bonds acquired at premiums often have lower yields to maturity than bonds purchased at market rates. This is further explained below.

What is a bond?

Generally, Bonds are financial securities that reflect loans made to the issuer by the bondholders themselves. When it comes to borrowing money, governments (at all levels) and companies (of all sizes) often turn to bonds.

In conclusion, If you buy a bond at a discount, the yield to maturity will be lower than its coupon rate.

Read more about the bond

https://brainly.com/question/17405470

#SPJ1

You have a choice between 2 mutually exclusive investments. If you require a 15% return, which investment should you choose

Answers

It is important to conduct thorough research and analysis before making any investment decisions to ensure that they align with your overall financial goals and risk tolerance.

Why will be investment should you choose?

Without specific information on the details of each investment, it is impossible to determine which investment should be chosen if a 15% return is required.

The decision between two mutually exclusive investments should be based on a comparison of their expected returns, risk levels, and other relevant factors. These factors may include the investment's liquidity, tax implications, and the investor's specific financial goals and risk tolerance.

In general, investors should seek to make investments that provide returns that meet or exceed their required rate of return while also considering the level of risk involved. A higher required rate of return typically indicates a higher level of risk tolerance, as the investor is expecting a greater return in exchange for accepting higher risk.

Therefore, to determine which investment to choose, more information about the specific investments and their expected returns would be necessary.

Learn more about investment decisions

brainly.com/question/31667489

#SPJ11

How does a notice board help in providing information?​

Answers

Answer:

to boost the marble of employees

Answer:

A notice board can display graphs, data, facts and other relevant information

Explanation:

A notice board saves time, keep people informed, and can be serve for many purposes.

Loptech, a technology firm, wants to issue bonds for investment purposes. Loptech has one of the best credit ratings in the industry. Market rates for debt instruments average at .5% interest. Based on its credit rating, Loptech would likely sell bonds that pay _____.


0.25%

Indeterminable with current information

0.5%

0.75%

Answers

Answer:

The best option available is:

0.25%

Explanation:

Since Loptech has a great credit rating, it will pay a very low interest rate, at least lower than the average. Since the average interest rate is 5%, you should expect them to pay less than 5%. You cannot determine exactly what interest rate they will pay but if we consider the available options, the best choice is 0.25%.

Credit ratings work similarly for people and companies, e.g. the average interest rate charged by credit cards is around 14.5%, but people with very high credit scores, like 800 or so, will generally pay between 8-10% interest rates, while people with very low credit scores will pay over 20%.

Can anyone help with this question??

Can anyone help with this question??

Answers

Potential GDP is the level of economic output that an economy can produce when all resources are fully employed. If actual GDP is $500 billion and there is a negative GDP gap of $20 billion, it means that the economy is producing $20 billion less than its potential.

Therefore, potential GDP can be calculated as:

Potential GDP = Actual GDP + GDP Gap
Potential GDP = $500 billion + (-$20 billion)
Potential GDP = $480 billion

Therefore, the potential GDP in this case is $480 billion.

a bank form which lists the checks, currency, and coins an account holder is adding to a bank account.

Answers

The checks, cash, and coins that are being added to a bank account are listed on a deposit slip.

One can deposit and withdraw money from a bank account, make payments, send money to another person or organisation, pay bills online, and more. Bank accounts allow for cashless transactions and the receipt of direct deposits from employers or other organisations.

Opening a bank account can be one of the most crucial actions to achieve financial objectives. Because keeping money in an FDIC-insured bank account can provide monetary security, simple access to funds, cost savings from check cashing costs, and general monetary peace of mind.

Deposit account funds are used by banks to fund loans to other people or companies. The borrower pays interest on those loans to the bank in return.

Learn more about bank account from here:

https://brainly.com/question/22048677

#SPJ4

The Cornucopian view held by many economists suggests that resource depletion due to greater numbers of people ________. poses no problem if new resources can be found to replace depleted ones poses no problem because disease will limit population size poses no problem because humans are too intelligent to allow it to become one will lead to natural selection of the most fit individuals will cause a population crash

Answers

A lot of non-renewable resources are being reduced as a result of unhindered use of fuel and energy. The Cornucopian view held by many economists suggests that resource depletion due to greater numbers of people no problem if new resources can be found to replace depleted ones.

The growth of population often demands on our already limited resources.

The environment on earth is suffering from the growth of global population.

Population growth often deals with the increase in population as as it increases, the depletion of natural resources will also increase also.

Conclusively, Overpopulation can also cause depletion of natural resources as the more people, the more resources use, more food, more energy.

Learn more from

https://brainly.com/question/7478759

If you are interviewed by more than one person, you should send a thank-you note to _____.


each person in the interview

each person you see in the building

the first person you are introduced to

the person who is obviously leading the interview

Answers

Answer:

option A is correct.

i.e.

each person in the interview.

Explanation:

Because thank-you letter provides a simple but effective way to express gratitude to all the individuals you met with.

Suppose that an increase in health consciousness increases the demand for fitness centers across the country. Other things being equal, we can expect the wages of fitness instructors to:

Answers

Answer:

Increase.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal.

According to the law of demand, there exist a negative relationship between the quantity of goods or services demanded and the price of goods or services i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.

This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.

In this scenario, an increase in health consciousness increases the demand for fitness centers across the country. Other things being equal (ceteris paribus), we can expect the wages of fitness instructors to increase because their services would be sought or demanded by the trainers.

what characterizes developing economies? check all that apply.

Answers

Explanation:

Explanation: What characterizes a developing economy is the rapid pace of GDP and improved social indicators such as rising living standards and the rise of the middle class. GDP will be accelerated as production in the country increases.

Which options does the Ink Equation dialog box provide? Check all that apply.

Clear
Copy
Correct
Erase
Preview
Write

Answers

Answer: the answer to this question is Clear, Correct,Erase,Preview,Write

Explanation:

suppose that a firm in amonopolistically competitieve industry produces an output level at which mmr

Answers

If a firm in a monopolistically competitive industry produces an output level at which its marginal revenue (MMR) is positive but less than its marginal cost (MC), then it is not maximizing its profits.

In order to maximize its profits, the firm should produce at a level where MMR equals MC. This is because producing any more than this level would result in the firm incurring greater costs than the revenue it generates.

On the other hand, producing less than this level would mean that the firm is not taking advantage of its potential to earn more revenue. Therefore, the firm should aim to find the level of output where MMR equals MC in order to maximize its profits in a monopolistically competitive industry.

To know more about marginal revenue, refer to the link:

https://brainly.com/question/31550596#

#SPJ11

The appropriate role for monetary policy: the rules versus discretion debate Monetarists argue that using active discretionary monetary policy is dangerous because it is subject to: Select one: O a. policy effectiveness lags. O b. all of the above. O C. none of the above. O d. information lags. O e. policy determination lags. 21 28 33 44 Finish

Answers

Monetarists argue that using active discretionary monetary policy is dangerous because it is subject to policy effectiveness lags. Therefore, the appropriate role for monetary policy is rules versus discretion debate. What is monetary policy?

Monetary policy refers to the actions taken by a central bank or other regulatory authority to control the money supply and achieve macroeconomic goals such as price stability, full employment, and economic growth. Rules versus Discretion Debate In the economics of monetary policy, the rules versus discretion debate refers to the debate between using fixed rules in monetary policy or giving central bankers the authority to make discretionary choices.

Inflation Targeting Inflation targeting is a rules-based monetary policy that emphasizes the importance of price stability and transparency in the policymaking process. The Role of Monetary Policy Monetary policy can be used to achieve a variety of macroeconomic goals, including: Price Stability Full Employment  Economic Growth Interest Rate Stability Exchange Rate Stability The Risks of Discretionary Monetary Policy Monetarists argue that using active discretionary monetary policy is dangerous because it is subject to policy effectiveness lags.

In other words, the effects of policy decisions may not be felt immediately, making it difficult to know whether a policy decision was effective or not.

To know more about Monetarists visit:

https://brainly.com/question/29618278

#SPJ11

which of the following is not an element of structural quality in child care programs

Answers

Answer:

The correct answer is ''Parent-caregiver relationships.''

Why are most cars manufactured in China?

Answers

Answer:

China remains the world’s largest automotive manufacturing country and automotive market since 2009. Annual vehicle production in China accounted for over 30 percent of worldwide vehicle production, which exceeds that of the European Union or that of the United States and Japan combined.

Explanation:

I found this on a  website called statista.com I couldnt find why i am sorry

companies that do business in other countries have to present compensation packages to expatriate managers that are competitive in take-home, rather than gross, pay. true false

Answers

The statement is True. Companies that do business in other countries often have to present compensation packages to expatriate managers that are competitive in take-home pay rather than gross pay.

Compensation refers to the financial or non-financial rewards provided to employees in exchange for their work and services rendered to an organization. It is a vital component of the employment relationship, aiming to attract, motivate, and retain talented individuals. Compensation packages typically include elements such as base salary, bonuses, benefits, and incentives.

Base salary forms the foundation of compensation and is the fixed amount paid to employees for their job responsibilities. It is usually determined based on factors like market rates, job roles, and individual skills and experience. Bonuses are additional payments given to recognize exceptional performance or achievement of specific goals. Benefits encompass various offerings like health insurance, retirement plans, paid time off, and other perks provided to support employee well-being and work-life balance.

To know more about Compensation refer to-

brainly.com/question/28250225

#SPJ4

Other Questions
how to distribute x(3-x) Why do we need to understand the importance of an incident reports? A circle with a 12-inch diameter is folded in half and then folded in half again. What is the area of the resulting shape? Round the nearest whole number. Gaseous NOCl decomposes to form the gases NO and Cl2. At 35oC the equilibrium constant is 1.6 x 10-5. In an experiment in which 1.0 mole of NOCl is placed in a 2.0L flask, what is the equilibrium concentration of NO Which of the following programs enable root to set the ownership of files? (Select all that apply.) A. chmod. B. chown. C. usermod. D. Nautilus E. touch. (I wrote it on math software and attached image)Is it true that they all mean the same? please help refer to figure 19-6. this figure depicts labor demand and supply for the widget industry. the equilibrium market wage is $15. suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. which of the following statements is true? Which country was so impressed withthe tour of the Great White Fleet that itbuilt a navy to rival the U.S. navy? How would the presence of an egg eating predator affect the probability a fish successfully reproduce Someone please help me :( Im struggling During the Tokugawa Shogunate, what caued many daimyo to truggle financially , reulting in increaed corruption ? to boost economic activity and employment during a u.s. economic downturn, the government will frequently use expansionary fiscal policy. such a policy might be composed of: Jim, the radiology department director, believes the annual operating budgeting process is a tool used to increase his department through the addition of staff and supplies. Susan, the laboratory department director, believes the annual operating budgeting process is a tool used to control costs. Dr. Smith, the emergency department director, considers the budgeting process a nuisance and believes he should simply increase all revenues and expenses by 5% for the coming year to achieve a budget. Whose viewpoint represents the proper objective for the budgeting process no-par value stock is common stock that:multiple choice question.is not publicly tradedhas no current valuehas not been assigned a par value What must a new object have in Turtle Graphics? Export Name Title Rank does someone mind helping me with this problem? Thank you! Where are you most likely to hear these instructions? 0:00 / 0:13 el hospital en la escuela en la oficina en el parque What will the result of this form be? (cdr '(1 2 3 4 5 6)) a)01 b)3 c)(2 3 4 5 6) d)(1 2 3 4 5 6) how many ml of propyl alcohol are required to make a 9.17% (v/v) aqueous solution in a 250. ml volumetric flask? What is the entropy change in the environment when 5.0 MJ of energy is transferred thermally from a reservoir at 1000 K to one at 500 K