Ask question

Ask question

All categories

2 years ago

15

The risk-free rate is 5 percent and the market risk premium is 8 percent. Stock Y's beta is 1.85 and the standard deviation of i

ts returns is 62.5 percent. What should be the stock's expected rate of return for the stock price to be considered in equilibrium?

1 answer:

Romashka [77]2 years ago

5 0

Answer:

g

Explanation:

You might be interested in

Direct materials needed for production is calculated by_________.

professor190 [17]

Answer:

d. multiplying units to be produced by direct materials per unit.

Explanation:

To determine the total direct material, key parameters required are the direct material cost per unit and the number of units to be produced. The product of these two parameters gives the direct material cost required for production.

For example, if there are 10 units of an item to be produced and the direct material cost per unit is $4, the direct material cost needed for production is $40 derived from the product of the number of units and the direct material cost per unit.

Therefore, the right option is d. multiplying units to be produced by direct materials per unit.

3 0

2 years ago

Consider the effects of inflation in an economy composed of only two people: Charles, a bean farmer, and Dina, a rice farmer. Ch

Fantom [35]

Answer:

1) Suppose that in 2017 the price of beans was $2 and the price of rice was $8.

a) inflation rate = 100%
b) both are unaffected

old price of beans = $1, new price $2, inflation rate 100%

old price of rice = $4, new price $8, inflation rate 100%

The inflation rate measures the change in the general price level of an economy during a certain period of time, in this case during a year from 2016 to 2017.

Since Gilberto produces beans and Juanita produces rice, and the price of both of their products increase equally (100%), then the inflation rate will not affect them. Their consumption levels also remain the same, no one decided to consume more of one product and less of the other.

2) Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80.

a) 60%
b) Charles is better off while Dina is worse off

old price of beans = $1, new price $2, inflation rate 100%

old price of rice = $4, new price $4.80, inflation rate 20%

average inflation rate = 60%

Since Charles produces beans, and the price of his products increased a lot, he will be better off, while Dina will be worse off since the price of rice increased much less.

3. Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60.

a) 20%
b) Charles will be better off, Dina will be worse off

old price of beans = $1, new price $2, inflation rate 100%

old price of rice = $4, new price $1.60, inflation rate -60%

average inflation rate = 20%

4) What matters more to Charles and Dina?

The relative price of rice and beans is more important to Charles and Dina.

7 0

2 years ago

A seller uses a periodic inventory system, and on April 4, it sells $5,000 in merchandise on credit (when its cost is $2,400) to

RoseWind [281]

Answer:

Periodic Inventory System

Journal Entries

April 4 Debit Accounts receivable $5,000

Credit Sales revenue $5,000

To record the sale of goods on credit, terms of 3/10, n/30.

April 5 Debit Sales returns $500

Credit Accounts receivable (cash) $500

To record the return of goods for a cash refund.

Explanation:

a) Data and Analysis:

April 4 Accounts receivable $5,000 Sales revenue $5,000 credit terms of 3/10, n/30.

April 5 Sales returns $500 Accounts receivable (cash) $500

b) The seller uses a periodic inventory system. Therefore, the cost of goods sold will not be recorded on April 4 until April 30, when there will be a physical count of inventory to determine the closing inventory. With the beginning and ending inventories together with the purchases account, the cost of goods sold can then be calculated.

6 0

2 years ago

Bentley manages a building supply company. He wants to invite 20 of his most valuable building-contractor customers to a golf ou

Radda [10]

Bentley will likely use the firm's <u>CRM databases</u> to identify these customers.

<u>Explanation</u>:

CRM databases collect information about the customers. It can be used to identify the best customers. The database stores the annual sales report.

CRM is a customer relationship management that manages the interaction between company and customers.

CRM database holds all the data related to the customers like their name, email address, age, Skype address and occupation details.

In the above scenario, Bentley can use CRM database to filter twenty valuable building contractor customers and invite them for golf outing and party.

6 0

2 years ago

A consumer lives on a diet of solely steak and potatoes. Her budget is $30 for every 10 days and she must buy enough potatoes t

Alja [10]

Answer:

Total= 20 potatoes + 2 steaks

Explanation:

Giving the following information:

Her budget is $30 for every 10 days and she must buy enough potatoes to eat at least 2 potatoes per day. If a potato costs $0.50 and the price of a steak is $10.

2 potatoes a day= 0.5*2= 1

Consumption of potatoes= 10 days*$1= $10

Consumption of steak= 30 - 10= 20/10= 2 steaks.

Total= 20 potatoes + 2 steaks

5 0

2 years ago