A stock has an expected return of 10. 5 percent, its beta is 1. 15, and the risk-free rate is 5 percent. What must the expected return on the market be

Answers

Answer 1

To determine the expected return on the market, given a stock's expected return of 10.5 percent, a beta of 1.15, and a risk-free rate of 5 percent, we can use the Capital Asset Pricing Model (CAPM). The expected return on the market must be 10.65 percent.

The Capital Asset Pricing Model (CAPM) is a widely used model for calculating expected returns on investments. It takes into account the risk of an investment relative to the overall market. The formula for CAPM is:

Expected Return on Stock = Risk-free Rate + Beta * (Expected Return on Market - Risk-free Rate)

In this case, the stock has an expected return of 10.5 percent, a beta of 1.15, and a risk-free rate of 5 percent. To find the expected return on the market, we rearrange the formula and solve for it:

Expected Return on Market = (Expected Return on Stock - Risk-free Rate) / Beta + Risk-free Rate

Plugging in the given values, we get:

Expected Return on Market = (10.5% - 5%) / 1.15 + 5% = 10.65%

Therefore, the expected return on the market must be 10.65 percent to match the stock's expected return of 10.5 percent, given its beta of 1.15 and the risk-free rate of 5 percent.

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Related Questions

Jose wants to find out how many men wear bright colored ties. Which
marketing research tool should he use?

A. Survey
B. Business records
C. Focus group
D. Census data

Answers

Answer:

survey

Explanation:

According to the scenario, a survey is the marketing research tool they used. Thus, option 'A' is the correct option.

What is a survey?

A survey is a set of questions used in human subject research with the goal of gathering specific information from a certain population. Surveys can be carried out via the phone, by mail, online, at street corners, and even in shopping centers. Surveys are used to collect data or learn more in areas like demography and social research. Survey research is frequently used to evaluate ideas, beliefs, and emotions.

Surveys might have narrow, focused objectives or they can have broad, more general objectives. In addition to being utilized to satisfy the more practical requirements of the media, such as evaluating political candidates, public health authorities, professional organizations, and advertising and marketing directors, surveys are frequently employed by psychologists and sociologists to evaluate behavior.

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QUESTION 10 of 10: You are planning to place an ad in a local newspaper. The size of the ad is 6 inches long by 5 columns wide. The
newspaper's rate per column inch is $20. How much will the ad cost?
a) $600
b) $625
c) $635
d) $645

Answers

A) 600 please press thanks

According to Archbishop John Foley, what three standards does the church set forth for marketers?

Answers

Answer:

One is truth: Always tell the truth. The second one is the dignity of the person, so don't exploit people. And the third principle is the common good  that advertising should serve the common good.

Explanation:

:)

a command economy features:
A. private companies operating without government interference
B. the government directly controlling the production and sale of goods
C. people relying on customs to make economic decisions
D. the government placing some regulations on free businesses

Answers

Answer:

A. private companies operating without government interference

Explanation:

i just took the test

A command economy features the regulation of production and sale of goods by the government.

Option C is correct.

What is meant production?

Production is referring to the activity where the saleable products are produced from the basic form of raw materials.

When the government controls the manufacturing and disposal of goods, then it allows the activity to be done by various entities and provided them the needed raw materials. This system is primarily concerned with the activity done in public interest.

Therefore, the feature provided in option B is correct.

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1. Abler Corporation has corporate bonds trading in the market at $820. These bonds have $1000 face (or maturity) value and pay an 8% stated (or coupon) rate annually ($40 every six months). These bonds have 12 years to maturity. What is the pretax cost of Abler Corporation's debt?

Answers

Answer:

10.70%

Explanation:

NPER = 12*2 = 24

PMT = 40

PV = -820

FV = 1000

Pretax Cost of Debt = Rate (NPER, PMT, -PV, FV) * 2

Pretax Cost of Debt = Rate(24, 40, -820, 1000) * 2

Pretax Cost of Debt = 0.0535 * 2

Pretax Cost of Debt = 5.35% * 2

Pretax Cost of Debt = 10.70%

a rectangular swimming pool has dimensions 45 metre by 20 metre concrete path of 3.5 m width is laid around it .Find the cost of laying the path at a rate ₹25 per m2​

Answers

Answer:

Rs. 5993.75

Explanation:

The computation of the cost of laying the path is given below:

= {area of(pool +path)- area of pool }

= ((45 + 3.5) × (20 + 3.5)) - (45 × 20)

= (48.5×23.5) - (45 × 20)

= 1139.75 - 900

= 239.75 square meters

Now the cost is

= 239.75 × 25

= Rs. 5993.75

The blank is the the minimum amount of your bill you must pay each month.

Answers

minimum payment

the least amount of money that must be paid at the end of a month

Pizza Hut is an American restaurant chain that offers different styles of pizzas and many other fast food options. There are more than 5,600 store locations in 94 countries around the world, which are owned and operated by the local population of those countries by giving access to patents, trademarks, etc. (a) Which form of international business is adopted by Pizza Hut? Explain. (b) Explain any two advantages and any two disadvantages of this form of international business.

Answers

Answer:

(a) Which form of international business is adopted by Pizza Hut? Explain.

Pizza Hut operates through franchises. Basically Yum (which owns Pizza Hut) is the franchisor that allows the franchisee to invest in a restaurant, operate it and it must pay the franchisor certain fees.

(b) Explain any two advantages and any two disadvantages of this form of international business.

Advantages:

higher rate of success for new businessesprior experience is not required since the franchisor provides training, counseling and a business model.

Disadvantages:

Franchisees must follow the business model and cannot innovatethe risk of poor service offered by some franchisees always exist

__ offers users an "Ask a Librarian" feature to inquire about the library's collections.

Answers

Answer:

Library of Congress (LOC)

Explanation:

A library also known as a bookhouse can be defined as an institution having various collection of books and other informative materials that people can read to gain more knowledge, insight and motivation about a particular topic. An example of a library is the Library of Congress (LOC) located in Washington DC, United States of America.

Library of Congress (LOC) refers to the research library used by the Congress of the United States of America to provide or gain access to a diverse and rich source of knowledge (informations) about things, places, animals, plants, people, etc.

Basically, it comprises of millions of literary works such as manuscripts, books, photographs, maps, recordings, newspapers in its collection and as a result of this, it is known to be the largest library in the world.

The Library of Congress (LOC) offers users an "Ask a Librarian" feature to inquire about the library's collections. Therefore, users can easily make enquiries from a librarian on any thing they aren't clear about using the Library of Congress (LOC).

what is human resources in south Africa​

Answers

Explanation:

Human resources refer to a country's population, their skills and abilities

At the end of a long day, Sabrina, a cashier for a supermarket is counting the paper money. One of the bills falls from the cash register into the bottom of Sabrina's purse. What elements of embezzlement are present in this situation? Should Sabrina be convicted of embezzlement? Why or why not?

Answers

Answer:

It is an act of theft and conversion of property that is not her own. However it is not intentional

She should not be convicted

Explanation:

Embezzlement is defined as the intentional managemnet of.funda that are put in the care of a person. This is done in order to have a personal gain from the management.

It is when an individual engages in theft of entrusted funds.

In the given scenario although the cash fell into her bag, she did not intentionally take the money for personal gain.

As this is the main concept of embezzlement, she can't be held guilty of embezzlement

Professor Bong has just written the first textbook in Punk Economics. It is called 'Up Your Isoquant'. Market research suggests that the demand curve for this book will be Q = 2,000-100P, where P is the book's price. It will cost $1000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to setup cost, there is a marginal cost of $4 per book for every book printed.


a. What is the total revenue function R(Q) for Professor Bong's book?

b. What is the total cost function C(Q) for producing Professor Bong's book?

c. What are the marginal revenue function MR(Q) and the marginal cost function MC(Q)?

d. Find the profit-maximizing quantity of books for Professor Bong to sell.

Answers

Answer:

a. R(Q) = 2OQ - 0.01Q^2

b. C(Q) = 4Q + 1000

c. MR(Q) = 20 - 0.02Q; and MC(Q) = 4.

d. The profit-maximizing quantity of books for Professor Bong to sell is 800.

Explanation:

a. What is the total revenue function R(Q) for Professor Bong's book?

From the demand function, we can obtain price function P as follows:

Q = 2,000-100P

Q + 100P = 2,000

100P = 2,000 - Q

Divide through by 100, we have:

P = 20 - (1 / 100)Q

P = 20 - 0.01Q

The total revenue function R(Q) is the product of quantity demanded Q and price function of the book P as follows:

R(Q) = Q * P = QP .................... (1)

Since P = 20 - 0.01Q, we substitute into equation (1) and solve further as follows:

R(Q) = Q(20 - 0.01Q)

R(Q) = 2OQ - 0.01Q^2 <====== Total revenue function R(Q)

b. What is the total cost function C(Q) for producing Professor Bong's book?

By removing the dollar sign, this can be obtained as follows:

MC = Marginal cost = 4

VC = Variable cost = MC * Q = 4 * Q = 4Q

FC = Fixed cost = Setup cost = 1000

Therefore, the total cost function C(Q) can be obtained as follows:

C(Q) = VC + FC ...................... (2)

Substituting the values into equation (2), we have:

C(Q) = 4Q + 1000 <====== Total cost function C(Q)

c. What are the marginal revenue function MR(Q) and the marginal cost function MC(Q)?

To obtain the marginal revenue function MR(Q), the first derivative of the total revenue function R(Q) in part a is taken as follows:

MR(Q) = R'(Q)

MR(Q) = 20 - 0.02Q

To obtain the marginal cost function MC(Q), the first derivative of the total cost function C(Q) in part b is taken as follows:

MC(Q) = C'(Q)

MC(Q) = 4

d. Find the profit-maximizing quantity of books for Professor Bong to sell.

Since profit is maximized where MR(Q) = MC(Q), the profit-maximizing quantity of books for Professor Bong to sell can be calculated as follows:

20 - 0.02Q = 4

20 = 4 + 0.02Q

20 - 4 = 0.02Q

16 = 0.02Q

Q = 16 / 0.02

Q = 800

Therefore, the profit-maximizing quantity of books for Professor Bong to sell is 800.

1. Describe ways in which individuals you know have developed differently from others .

Answers

Answer:

Key takeaway: Our perceptions are influenced by our individual differences and preconceived notions.

Explanation:

Physical characteristics influence how we perceive and respond to information. You may be asked to design a sign that says, “Watch your head,” which will be placed next to a six foot six inch overhang that is above floor level. While a few very tall people will have to worry about hitting their heads on the overhang, most people in the world are not that tall. Tall and short individuals will perceive this sign differently.

Your psychological state can also influence what you read and listen to, and why you do so. The emergency procedures binder on the wall next to the first aid kit doesn’t mean much to you until a coworker falls and suffers some bad cuts and bruises. If you were asked to design the binder and its contents, could you anticipate a psychological state of anxiety that would likely be present when someone needed the information? If so, then you might use clear bullet lists, concise, declarative sentences, and diagrams to communicate clearly.

Your cultural background plays a significant role in what and how you perceive your world. You may be from a culture that values community. For example, the message across the advertisement reads: Stand out from the crowd. Given your cultural background, it may not be a very effective slogan to get your attention.

Our perceptual set involves our attitudes, beliefs, and values about the world. Perhaps you’ve heard the phrase, “Looking at the world through rose-colored glasses” and can even think of someone as an example. We experience the world through mediated images and mass communication. We also come to know one another interpersonally in groups. All these experiences help form our mental expectations of what is happening and what will happen.

Think about your brand preferences, your choice of transportation, your self-expression through your clothing, haircut, and jewelry—all these external symbols represent in some way how you view yourself within your community and the world. We can extend this perspective in many ways, both positive and negative, and see that understanding the perspective of the audience takes on new levels of importance.


What is one cost of avoiding insurance?
falling into debt if faced with a serious problem
not benefitting from insurance de bructibles
not being able to purchase a car or home
facing increased probability of accidents

Answers

Answer:

A

Explanation:

Edge

ordinary kriging method assume that​

Answers

Ordinary kriging, for which the assumption of stationarity (that the mean and variance of the values is constant across the spatial field) must be assumed.

Why is being a flight attendant a good job

Answers

Answer:

cuz ur parents will call u a failure

Explanation:

Answer:

You are able to fly around the world and meet new cultures

Explanation:

a family gets 300 litres of free water,January has 31 days how many free kilolitres of water did this family get in January ​

Answers

Answer:

i think its 9300

Explanation:

you just say 300l multipled by 31days and you get 9300

Sue says that customers are "expecting a whole lot more for their dollars so the level of customer service has to be that much better and the level of our offerings has to match their expectations". Sue decides to send an email survey to current customers to discover what additional services Camp Bow Wow might offer. Based on the results, Sue intends to implement new services. This is an example of: A. Applied research B. Basic research C. Fact finding D. Development and implementation

Answers

Answer:

A. Applied research

Explanation:

Applied research is defined as a study that is aimed at finding answers to specific practical problems. The information.gained from applied research is usually applied to business activity to improve a product, service, or process.

In the given scenario Sue sends an email survey to current customers to discover what additional services Camp Bow Wow might offer. Based on the results, Sue intends to implement new services.

She is using applied research to gain information that will improve customer service in the organisation

Mel suddenly finds an opportunity to sell boxed dinners. The new opportunity would require the use of the 30 percent unused capacity. The contribution margin from the dinners would amount to $3,000 annually. Required: a. If Mel decides to sell dinners, what are the total costs for both making and buying the cookies?

Answers

Answer:

$900

Explanation:

The computation of the total cost for both making and buying the cookies is given below:

But before that the variable cost per unit is

= (Cost of goods sold - fixed cost) ÷ (sales units)

= ($13,500 - $4,500) ÷ ($180,000 ÷ 6)

= $3

now the total cost is

= 300 × $3

= $900

1. What is the annual percentage rate (APR) for this credit card?

2. For cash advances what is the APR?

3. What three things would move the APR for the balance on this credit card to 28.99%?

4. What is the annual fee that customers are charged for holding this credit card?

5. If you decided to transfer the balance from another credit card to this credit card, what would be the fee charged?

a. What would be the APR charged for the transferred balance?

6. What is the fee for a cash advance?

7. If you use this credit card in a foreign country, what would be the fee on each transaction you made in the foreign country?

8. If you are late on making a payment, what would be the fee charged?

9. What would be the fee charged if you went over your credit limit?

Answers

Answer:

1.  For purchases, the APR during an introductory period is either 8.99% or 10.99% or 12.99% depending on creditworthiness. After the introductory period the APR is 14.99%

2. Cash advance monthly rate changes based on what the Prime Rate is that month + 14.99% so if the prime rate is 3, add 14.99 to that so 17.99% of the amount received in cash. So if you take $200 cash advance,  the amount charged at 17.99% would be 0.1799 x 200 =$35.98.

3. If the card holder does any of the following: makes a late payment, goes over their stated credit limit, make an account payment that is returned, or commit the afore mentioned acts on another account held by this same creditor the APR is then increased to 28.99%.

4. The annual fee charged for the credit card is $20.

5. The fee for a balance transfer is Either $5 or 3% of the amount that is transferred or $100 (whichever is greater) to this card from another account.

  a.  The APR charged for a balance transfer is 15.99%, but would vary based on the market Prime Rate.

6. Fee for cash advance is $5 or 3% of the amount of cash advance taken - whichever amount is largest.

7. 2% of the amount charged (in US dollars) in a transaction.

8.  A late fee of $25 will be charged on an account with a balance of $999 or less. If the account balance if over $1000 the late fee of $35 will be charged and the APR will increase to 28.99%.

9. A fee of $29 is charged for accounts that exceed the credit limit in addition to an APR increase to 28.99%

Explanation: explanations are with the answers listed above.

What conditions would affect how much people would use your business?

The business is and Ice Cream Shop.

Answers

Answer:

restaurant

like pandemic all small restaurant is closed the business is bankcrap

On January 1, Salter Corporation determined that its direct materials inventory needs to contain 6,000 pounds of materials by March 31. To achieve this goal, Salter will have to use four pounds of direct materials for every pound that it purchases during the upcoming quarter. On the basis of the company's budgeted sales volume, management estimates that 5,000 pounds of direct materials need to be purchased by March 31. Determine the number of pounds in Salter's beginning direct materials inventory on January 1.

Answers

Answer: 21000

Explanation:

Direct materials inventory desired = 6,000

Purchase of direct materials budgeted = 5000

Pounds needed for production = 5000 × 4 = 20000

The number of pounds in Salter's beginning direct materials inventory on January 1 will be:

= Direct materials inventory desired + Pounds needed for production -

Purchase of direct materials budgeted

= 6000 + 20000 - 5000

= 21000 pounds

Which of the following would be included in the U.S. gross domestic product
(GDP) measure?

Answers

Answer:
B) The value of Toyota cars made in California

Explanation:
The question asks for something that would be included in the U.S.’s GDP. This answer is the only one that is located in the United States. The other answers are from different countries.

Gross domestic product (GDP) is a standardized measure of the value-added generated by a country's production of goods and services over a specific time period.

What is the significance of GDP?

GDP is essential since it offers information about an economy's value and performance. The rate of increase in real GDP is widely cited as an indicator of the economy's overall health.

In general, an increase in real GDP is regarded as proof that the economy is doing well.

Thus, Option B is included in US GDP.

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A company had 6,950,000 net income for the year. Is net sales were 14,700,000 for the same period. Calculate its profit margin.

Answers

0.46 or 46% hope this helps

Which one of these business structures has one owner and is run by one
person?

A. Limited liability company
B. Partnership
C. Corporation
D. Sole proprietorship

Answers

D is the answer, Sole proprietorship

Sole proprietorship is the one of these business structures has one owner and is run by one person. Hence, option D is correct.

What is Sole proprietorship?


A person who runs an unincorporated business alone is known as a sole proprietor. If you choose to treat a domestic limited liability company as a corporation, however, and you are the only member, you are not considered to be a sole owner.

Small enterprises like a neighborhood grocery store, a neighborhood clothing store, an artist, a freelance writer, an IT consultant, a freelance graphic designer, etc. are examples of sole owners.

A business that is owned, run, and controlled by one person is known as a sole proprietorship. A Sole Proprietor runs the business, reaps the financial benefits, and bears all risks and liabilities. It is appropriate for independently run businesses like hairdressers or small retail stores.

Thus, option D is correct.

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Do you think workers of a company need to join in a trade union? Justify your answer

Answers

Explanation:

Because there is no unity the would not be done properly because there is role for every one

According to Uniform Commercial Code (UCC) Section 3-312, a certified check or a cashier's check is fully recoverable if the check is _____.

Answers

Answer:

lost or stolen

Explanation:

The Uniform Commercial Code is one of the primary sources of the contract law in the United States of America together with the Common law. The Uniform Commercial Law is commonly known as the UCC and it is one of the "uniform law" or the "modern laws" in the United States.

Under the section 3-312 of the UCC if a check is a certified check or a cashier check and if the check is lost or stolen, then the claimant of the check can fully get the refund of the amount by submitting a declaration to the bank and have to wait for 30-90 days to get a replacement check or the refund of the money. The claimant may have to present a indemnity bond to the bank.

Base on Uniform Commercial Code (UCC) Section 3-312, There is every tendency that certified check or a cashier's check can be recovered in case of loss or theft.

Uniform Commercial Code (UCC) Section 3-312 can be regarded as code that overseas the recovery of any teller's check or certified check Incase of theft or loss.

This means that so far the check is a certified one no panic incase of loss.

Therefore, loss or stolen is correct.

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Helpppp !!!

Usually done before you introduce a new product to be successful :

A) Test marketing
B) Marketing research
C) Marketing concept
D) Marketing mix

Answers

B) Marketing Research

HELP ASAP...Just tap the photo to read the problem

Answers

Answer:

Red Dear

Explanation:

Red Dear tell the location of Human Resources

Workplace diversity describes differences among workers in any of the following areas:
salary
office space
religion
Orace
select all that apply.

Answers

Answer= religion and race.

Office space and salary are not an example of diversity.

I hope this helps.
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