answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Neporo4naja [7]
2 years ago
14

Two central components of the CAPM are the​ ________. A. riskminus free rate and the market risk premium B. risk premium and the

inflation rate C. market rate and the inflation premium D. inflation rate and the market rate
Business
1 answer:
madam [21]2 years ago
7 0

Answer:

A. riskminus free rate and the market risk premium

Explanation:

The CAPM is the Capital asset pricing model which required to find out the expected rate of return. The formula is shown below:

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

And, the (Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied for the computation

You might be interested in
A marketing consultant, Sofia, has been studying the effect of increasing advertising spending on product sales. Sofia conducts
UkoKoshka [18]

No, because 100,000 is much greater than the values used in the experiment

Explanation:

The advertisement budget is an estimation of the company's commercial spending for a specified amount of time. More specifically, it is the capital that a organisation is able to put aside to accomplish its marketing goals.

In developing an advertisement budget, a corporation must balance the importance of the promotional dollar against the value of the dollar as known revenue.

Better promotional budgets — and campaigns — focus on consumers' desires and address their challenges, not on business concerns such as overstock elimination.

5 0
1 year ago
Production workers for Chadwick Manufacturing Company provided 3,200 hours of labor in January and 2,800 hours in February. The
Sergeu [11.5K]

Answer:

The insurance cost should be allocated to the products made in January and to those made in February is $8,000 and $7,000 respectively.

Explanation:

For computing the allocated insurance cost, first, we have to compute the per labor rate which is shown below:

Per labor rate = (Annual premium) ÷ (Labor hours)

                       = ($120,000) ÷ (48,000 hours)

                       = $2.5

Now the insurance cost would be

For January = Labor rate per hour × number of labor hours\

                    = 3,200 hours × $2.5

                    = $8,000

For February = Labor rate per hour × number of labor hours

                      = 2,800 hours × $2.5

                      = $7,000

3 0
1 year ago
What aspects of managing your account were probably more difficult before online banking was available?
sveticcg [70]

Answer:

One of the main advantages of online banking is that you can access information about your account immediately and from anywhere. Before online accounts were available, you had to go to a bank or ATM on some specific cases if you wanted to carry out any type of transaction, e.g. pay a service or transfer money. Online accounts make it less likely for a person to go to a bank, e.g. in order to get a loan, I did it all online, I didn't even need to go to the bank.

5 0
2 years ago
If expected return is less than required return on an​ asset, rational investors will​ ________.
DedPeter [7]
Sell the asset, which will drive down the price and cause the expected return to reach the level of the required return.
6 0
1 year ago
Applegate is in litigation with Magnifium over a contract breach. Applegate has been approached by a former janitor for Magnifiu
VladimirAG [237]

Answer:

Applegate cannot use the janitor's statement in the trial since the janitor was not directly involved in the work that was being discussed in the meeting. At most, Applegate can try to use some of the information to investigate further about the issue by its own.

Explanation:

The janitor could be considered a hearsay witness, but courts usually limit their testimonies depending on whether its content is admissible or not. The court and Magnifium's lawyers would examine the perception of the witness, his recollection of the events, how he communicated those events to the other party involved in the case, and most importantly the truthfulness of the witness testimony.

The janitor doesn't have a solid position in any of the possible challenges, e.g. he might be mad for being fired and is making up the story, he misinterpreted what he heard because he didn't know what they were talking about, Applegate reached the witness and offered him money to testify, his testimony may have some gray areas or may not be complete. There are simply too many possible objections that can eliminate his testimony and leave Applegate in a worse position.

5 0
2 years ago
Other questions:
  • Precautionary information that pertains to a laboratory instrument or appliance can only be obtained by contacting the manufactu
    10·1 answer
  • Prisly inc. is a multinational company that specializes in manufacturing and selling high-end cars. it launches a new car gwen 2
    15·1 answer
  • According to the overall staffing organizations model, hr and staffing strategy are driven by ______________.
    5·1 answer
  • When Coca-Cola carries a different price depending on whether the consumer purchases it in a fine restaurant, a fast-food restau
    9·1 answer
  • The petty cash fund of the Brooks Agency is established at $220. At the end of the current period, the fund contained $155 and h
    7·1 answer
  • Kaitlin has $10,000 of savings that she may deposit with her local bank. Kaitlin wants to earn a real rate of return of at least
    15·1 answer
  • Compute the number of units available for sale in March. 1(b). Compute the number of units in ending inventory on March 31. 2. C
    7·2 answers
  • Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.
    11·1 answer
  • Chiller Company has credit sales of $5.60 million for year 2013. Chiller estimates that 1.32% of the credit sales will not be co
    15·1 answer
  • At December​ 31, ​, Corporation has cash of ​million, accounts receivable of ​million, and​ long-term assets of million. The com
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!