Stock Y has a beta of 1.0 and an expected return of 12.4 percent. Stock Z has a beta of 6
and an expected return of 8.2 percent.
What would the risk-free rate have to be for the two stocks to be correctly priced? (Do
not round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)

Answers

Answer 1

Answer: Risk free rate = 1.9%

Explanation:

The Capital Asset Pricing Model allows for the calculation of the required return using the market return, beta and risk free rate.

Required return = Risk free rate + Beta * ( Market return - Risk free rate)

First find the market rate. Stock Y is uniquely positioned to help with that:

12.4% = Risk free rate + 1.0 * (Market return - Risk free rate)  

12.4% = rf + Market return - rf  

Market return = 12.4%

Apply this to the formula using Stock Z:

8.2% = rf + 0.6 * (12.4% - rf)  

8.2% = rf + 7.44% - 0.6rf  

rf - 0.6rf = 8.2% - 7.44%  

0.4rf = 0.76%  

rf = 0.76% / 0.4  

Risk free rate = 1.9%


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Answers

Answer

Yes

Explanation

Yes. If concentrations of ozone-destroying chemicals are reduced, the natural balance between ozone creation and destruction can be restored.

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» Question Completion Status:
QUESTION 2
A physician describes a patient's disease as being "idiopathic"; what is meant by this term?
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b. The patient isn't really sick
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Answers

The answer is C because idiopathic means a disease that has an unknown cause.

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Answers

Answer:

Non-verbal communication is one in which people use communicative means other than language, that is, they do not use the word and its meaning to convey a message, but rather through gestures, body expressions, movements, looks, images, etc., that is, appealing to the human senses without using language as a communication channel.

In principle, there are no major differences in how each gender communicates non-verbally with each other or with the other, except in matters of love attraction, where clothing, postures and looks play a fundamental role.

Significance test (Hypothesis Testing) Ap Statistics

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Answers

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Answers

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Answers

Answer:

Too inconsistent classify lollolololoo

Explanation:

Answer:

D. too consistent to classify

Explanation: just took the test :) good luck

What would a society be like if its members believed that women are superior to men?

Answers

Answer:

number one if society men would feel threaten because in a mens mine they might think sense their the men the should have more power then a women and that she should stay home and look after his kids and have a hot meal on the table when he come home from work

Explanation:

How do migration patterns impact women differently? What can governments do to protect women from the negative effects of migration?

Answers

The correct answer to this open question is the following.

Although there are no options attached or specific context, we can comment on the following.

Migration patterns impact women differently because depending on their own circumstances and the country in which they live, women are exposed to many different things that affect them and their children.

For instance, in many Central American countries such as El Salvador, Nicaragua, and Honduras, men leave their homes to immigrate to the United States. Meanwhile, women stay at home with their children, living the exact same problems: poverty, hunger, disease, and lack of opportunities. So if the husband can cross the US-México border and get a decent job in the United States, that is a matter of luck and the pass of time. During that process, women have to feed and protect their children under the worst of circumstances. And that is a major issue for women.

What governments can do to protect women from the negative effects of migration is to establish a series of programs and legislation that protect women while their husbands are away trying to get a fortune in the United States, for instance. This means that the government should invest to spend some money on social programs to guarantee basic living standards for mothers and children. For example, the opportunity to access health systems and public education to their children.

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Answers

Answer:

Yeah, I would say that’s true

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Answers

Answer:

Below

Explanation:

Despite the mutual non-aggression pact, the Soviets and the Germans were not on good terms. The Nazis were against the spread of communism, and the Soviets were against Nazi ideologies. During 1939, both of these nations had their reasons for staying neutral, but once those reasons were gone, it was only a matter of time before they clashed with each other. Even while fighting in France, Hitler had his doubts about Stalin and stationed some reserve troops on the Eastern border.

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Answers

Answer:

e

Explanation:

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Answers

Answer:

A. Semi periphery.this is the stage

The Rostow's growth model illustrated in this case is A. Semi periphery.

What is the growth model?

It should be noted that the growth model simply means the stages that are taken by a country before they develop.

In this case, the industrial newcomer is currently making waves in the world market. This illustrates the semi periphery stage.

Learn more about Rostow on:

https://brainly.com/question/4616128

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Answers

Answer:

they need strong analytical, organizational and leadership skills.

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