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2 years ago

What happens to most projects' value under the CAPM if there is a sudden increase to its market-beta

Business

1 answer:

Nana76 [90]2 years ago

5 0

Answer:

Its value increases

Explanation:

Here are the options to this question :

its value decreases

Its value increases

Its value stays the same

According to the CAPM ,

expected return of an asset = risk free rate + (beta x risk premium)

If the beta increases, the expected return of the asset increases and the value of the asset increases

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Glen found three brands of earbuds that have the specifications he wants. The three pairs of earbuds looked a bit different from

34kurt

This is an example of product differentiation. There are many brands and companies, and each of them fight for the best price while making the best profit. The products are similar, but the only difference are the pricing of the product.

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2 years ago

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The following are data for an economy in billions of dollars: Net rental income 141 Depreciation 1,241 Compensation of employees

Brilliant_brown [7]

Answer:

GDP= 9,872

Explanation:

The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.

The formula is:

GDP=C+I+G+/-NX

GDP: Gross Domestic Product

(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.

(G) government spending – this includes spending on new infrastructure like bridges and roads.

(NX) net exports – this includes spending on a country’s exports minus its spending on imports.

GDP= 6,728+1,767 +1,741+(1,102-1,466)

GDP= 9,872

7 0

2 years ago

Given the following data: Selling price per unit $ 2.00 Variable production cost per unit $ 0.30 Fixed production cost $ 3,000 S

Shkiper50 [21]

Answer:

Break Even Point in Dollars = $6,000

Explanation:

Break Even Point in Dollars = $\frac{Total \: Fixed \: Cost}{Contribution \: Per \: Unit}$ $\times$ Selling price per unit.

Total Fixed Cost = Fixed Production cost + Fixed Selling Expenses

Fixed Production Cost = $3,000

Fixed Selling Expense = $1,500

Total Fixed cost = $3,000 +$1,500 = $4,500

Contribution per unit = Selling price - Variable Cost per unit

Selling Price Per Unit = $2.00

Variable Cost Per Unit = Variable Production cost + Sales commission

Variable Production cost = $0.30

Sales Commission Cost = $0.20

Variable Cost per unit = $0.30 + $0.20 = $0.50

Contribution per unit = $2.00 - $0.50 = $1.50

Break-even point = $\frac{4,500}{1.5} \times 2 = 6,000$

Break Even Point in Dollars = $6,000

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2 years ago

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what is the present value of an annuity of $27 received at the beginning of each year for the next six years? The first payment

goldenfox [79]

Answer:

$129.35

Explanation:

Here is the full question :

What is the present value of an annuity of $27 received at the beginning of each year for the next six years? The first payment will be received today, and the discount rate is 10%

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 0 to 5 = $27

I = 10%

PV = $129.35

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

7 0

2 years ago

Harrison Corp. wants to raise its level of service to enhance customer experience. The board of directors send out an email cont

bearhunter [10]

Answer:

Downward communication

Explanation:

Within an organization, downward communication refers to any communication that starts in a higher level of the organization and flows to a lower level of the organization.

In this case, since the board of directors is the highest level of a corporation, any communication that is sent to other parts of the corporation will always be downward communication.

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2 years ago