asset a has an expected return of 12%. the expected market return is 14% and the risk-free rate is 6%. what is asset a's beta?

Answers

Answer 1

As per the expected return, the asset a's beta value is 42.85%

The term expected return refers the profit or loss that an investor anticipates on an investment that has known historical rates of return.

Here we have given that asset a has an expected return of 12%. the expected market return is 14% and the risk-free rate is 6%.

And we need to find the asset a's beta.

While we looking into the given question, we have identified the following from the question.

Expected return = 12%

Expected market return = 14%

Risk free rate = 6%

Then the asset a's beta value is calculated as,

Let us consider that the value of beta is b.

Here we know the formula of expected return formula as,

=> Expected return = Risk Free Rate + [Beta x Market Return Premium]

Apply the given value as decimal values, then we get

=> 0.12 = 0.06 + [b x 0.14]

=> 0.06 = 0.14b

=> b = 0.06/0.14

=> b = 0.4285

Then we convert it into percentage then we get

=> b = 42.85%

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Related Questions

True or false?

2 best friends are one mind in 2 bodies?

Answers

Answer:

True

Explanation:

because they are I hope its right

Answer:

well i would say true because friendship is a really strong thing

but then i don't really know

Which policy highlight would discuss how to approach an employer if you need to change a scheduled interview?.

Answers

The policy highlight that would address how to approach an employer if a scheduled interview needs to be changed is: The Public highlight.

What is a Public highlight?

A public highlight is an unwritten social laws institutionalized to solve unplanned problems. These policies serve as guide when implementing programs or actions created by an organization.

So for a planned interview to suddenly change, a public policy highlight would be most appropriate to implement. It gives room for an unforeseen event.

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If rodney traded €228.75 for $314.52, when did he make his exchange?
a. saturday
b. friday
c. thursday
d. tuesday

Answers

d. Rodney would have traded on Tuesday to trade €228.75 for $314.52.

The exchange rate between Euro and US Dollar is constantly changing and can vary from day to day. In order to determine when Rodney made his exchange, we need to look at the exchange rate on that day. The exchange rate is determined by the amount of one currency that can be exchanged for another.

For example, if the exchange rate on Tuesday is 1 Euro = 1.37 US Dollars, then Rodney would have exchanged €228.75 for $314.52. This means that Rodney made his exchange on Tuesday.

To determine the exchange rate on a given day, you can look up the currency exchange rate for that day on a currency exchange website. You will also need to know the base currency, which is usually the currency that you are exchanging from, in this case, the Euro.

Once you have the exchange rate, you can calculate how much of the second currency Rodney received for his exchange. In summary, the correct answer is d. Tuesday because this is when Rodney made his exchange based on the current exchange rate.

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What kind of monopoly does the cottage represent? Why?

Answers

The  kind of monopoly does the cottage represent is Technological Monopoly.

What is  definition of monopoly?

A scenario known as monopoly occurs when there is only one seller in the market. The monopoly case is viewed as the polar opposite of perfect competition in conventional economic analysis.

According to Irving Fisher, a monopoly is a market where there is "no competition," which results in a situation where one person or business is the only supplier of a specific good or service.

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A trading company acts like a ______, taking on much of the responsibility of finding markets while facilitating all marketing aspects of a transaction.

Answers

A trading company acts like a wholesaler

Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called Group of answer choices auditing. economics. finance. accounting.

Answers

Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called accounting.

Accounting is a fundamental process in business and financial management. It involves systematically recording financial transactions, classifying them into appropriate categories, and summarizing the information to create financial statements such as the income statement, balance sheet, and cash flow statement. These financial statements provide a snapshot of a company's financial performance, position, and cash flows, enabling decision-makers to analyze and make informed decisions about the organization's operations, investments, and financial strategies.

While auditing, economics, and finance are related disciplines, each has its own distinct focus. Auditing involves examining and evaluating financial records and statements to ensure accuracy, compliance, and reliability. Economics studies the production, distribution, and consumption of goods and services within an economy. Finance, on the other hand, focuses on managing financial resources, investments, and the financial aspects of decision making. However, accounting serves as the foundation for providing the necessary financial information in these areas.

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A company has a poor impression with the public. Who might they hire to make it better?
A.
A graphic designer
B.
An advertising agent
C.
A public relations manager
D.
A quality assurance professional

Answers

Answer:

c

Explanation:

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When an auctioneer decides that no one will bid any higher for the goods on sale, the bidding is closed, usually by

the pounding of the auctioneer's gavel.

True

False

Answers

Answer:

True

Explanation:

An auction is defined as a public sale of properties that considers bids from prospective buyers.

The highest bidder eventually makes the purchase.

The auctioneer calls for bids and when there is an unchallenged bid he pounds the gavel to indicate the item has been sold.

The auctioneer is the seller himself of am agent representing him.

At the start of the auction the seller sets a minimum price before bidding commences

In a free market economy, the market, not the
determines prices. The interactions of
and
determine the price in the market?

Answers

In a free market economy, the market, not the government, determines prices. The interaction of producers and consumers determine the price in the market.

Answer: 1. government , 2. consumers , 3. producers

Explanation: edmentum / plato

Suppose when Nablom's Bakery raised the price of its breads by 10 percent, the quantity demanded fell by 15 percent. What was the effect on sales revenue

Answers

The effect on sales revenue can be determined by analyzing the price elasticity of demand. With an elastic demand, the decrease in quantity demanded outweighs the increase in price, resulting in a decline in sales revenue.

The price elasticity of demand measures the responsiveness of quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. In this case, the price elasticity of demand would be:

Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)

= (-15%) / (10%)

= -1.5

Since the price elasticity of demand is greater than 1 (-1.5 in this case), it indicates that the demand for Nablom's Bakery breads is elastic. This means that the percentage change in quantity demanded is greater than the percentage change in price.

With an elastic demand, when the price increases, the total revenue (sales revenue) will decrease. In this scenario, since the price increased by 10 percent and the quantity demanded decreased by 15 percent, the effect on sales revenue would be a decrease.

The magnitude of the decrease in sales revenue depends on the specific values involved, such as the initial sales revenue, the price increase percentage, and the quantity decrease percentage.

However, in general, with an elastic demand, the decrease in quantity demanded outweighs the increase in price, resulting in a decline in sales revenue.

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Which of the following statments about government regulation of business is true?

A. Small businesses often feel the burden of regulations more than large corporations

B. It is easy for large corporations to comply with most government regulations

C. It is easy for small businesses to comply with most government regulations

D. Large corporations often feel the burden of regulations more than small businesses ​

Answers

Answer:

small business often feel the burden of regulations more than large corporations

Explanation:

Since they have less money to spend on things like building permits and licensing fees, small business owners may find it more difficult as a result of federal rules, which can also lead to lost productivity and fewer starting businesses.

Thus, Option A is correct.

What are a few unfavorable consequences of government regulations?

Ineffective laws may waste scarce resources, hinder innovation, growth, and job creation, undermine sustainable development, unintentionally injure the individuals they are meant to protect, and degrade public trust in our government.

Inefficiency and additional costs are encountered. Government regulation has a number of benefits, but there are also some drawbacks. Businesses typically incur more costs as a result of government regulation, which results in some operational inefficiencies.

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State 5 differences betweeen a stencil suplicator and a spirit duplicator​

Answers

Answer:

spirit duplication is a method of reproducing documents where a spirit duplicator is used. The master copy is prepared from which copies are produced.

I hope is helpful

please i want to be a branalist

Explanation:

Which sentence best describes how money functions as a "store of value"?
(A) You can exchange money for ghods and services.
(B) It adds to your purchasing power.
(C) It assigns value to goods and services.
(D) Its value appears in the books of accounts.

Answers

Answer:

(B) It adds to your purchasing power.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.

The three (3) main functions of money all over the world are;

I. Medium of exchange.

II. Unit of account.

III. Store of value.

The sentence which best describes how money functions as a "store of value" is that, it adds to your purchasing power.

Hence, money being a store of value makes it possible to transfer purchasing power between traders and buyers from the present to the future.

what the guy said above me

explain the difference between a courier and a post office (4marks)


Help pls!!

Answers

Answer:

Here are some major differences between courier services and postal services.

Explanation:

The first major difference between them is the time taken by them to complete the delivery. Postal services take a lesser amount of time (1-2 days), whereas on the other hand courier services make it a rapid delivery, generally the same day or the next day.

Courier services are offered by private organizations such as FedEx or DHL, whereas postal services are generally govt offices. Couriers are sent within the home country, but postal services are sometimes international too, which develops connectivity between nations.

If we take a look at the pricing, postal services are generally cheaper than courier services considering the reliability, speed ,and quality.

PLEASE HURRY!!!! Thanks! ;)
How do you know when you can afford something? When you have the ———————- to pay for it!

Answers

Answer:

Umm. Money

Explanation:

Well its not bananas or ketchup is it?

How does hrm promotes employees well being in both industries

Answers

HRM (Human Resource Management) promotes employees' well-being in both industries through a variety of strategies and practices.

These include:

1. Providing competitive compensation and benefits packages: HRM ensures that employees are adequately compensated for their work and have access to benefits such as health insurance, retirement plans, and paid time off.

2. Creating a positive work environment: HRM works to create a work environment that is supportive, respectful, and free from discrimination and harassment.

3. Offering professional development opportunities: HRM provides employees with opportunities to learn new skills and advance their careers through training programs and educational opportunities.

4. Promoting work-life balance: HRM encourages employees to maintain a healthy balance between their work and personal lives by offering flexible work schedules and paid time off.

5. Providing employee assistance programs: HRM offers resources such as counseling and support groups to help employees cope with personal and work-related issues.

Overall, HRM plays a crucial role in promoting employees' well-being in both industries by ensuring that they are adequately compensated, supported, and provided with opportunities for growth and development.

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An effective social media policy includes an element that
o prevents all use of social media during daytime hours.
o vaguely threatens employees who violate the policy.
o applies consistent standards across all social media networks.
o encourages anonymity when posting on social networks.

Answers

An effective social media policy includes an element that applies consistent standards across all social media networks. Therefore option C is correct.

What is Social Media?

The phrase "social media" refers to a computer-based technology that makes it possible to share concepts, ideas, and knowledge through online groups and networks. Social media is internet-based and allows users to share anything quickly, including movies, images, documents, and personal information.

Users interact with social media using web-based software or applications on a computer, tablet, or smartphone. Despite being widely used in America and Europe, Asia, particularly Indonesia, leads the world in social media usage. By October 2021, there will be more than 4.5 billion users of social media.

Therefore option C is correct.

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Plz help this is timed

Plz help this is timed

Answers

Answer:

the first option

Explanation:

All other options can be used to validate the checking up of the notes but verifying serial number is not ideal

Answer:

Verifying serial number

Explanation:

If they had a published list, counterfit makers would just use the list to generate serial numbers.

how did Suzy Batiz failures set her up for success?

Answers

Answer:

I'm not sure

Explanation:

Not enough explanation.

Not enough information

ATP is a vehicle manufacturing company which purchases most of the component from suppliers all around the globe. To minimize inventory costs, management decided to use Economic Order Quantity to control its inventory level. KWP is ATP’s long-term supplier for tire, and they have agreed to strict delivery time and quality requirement. Based on the 202X budget, the following information was collected from production:1. Based on pre-order, ATP requires 5250 units of tire each month for the first 4 months of the year and 3625 units of tires each month for the remainder of the year. 2. The carrying cost per unit is R2 per year. 3. The cost per order is R1,000.

Answers

Economic Order Quantity is 7071 units to control its inventory level. The following variables are necessary to determine the economic order quantity: demand rate, setup costs, and holding costs.

What are EOQ and its formula?

The following is the EOQ formula. EOQ equals the square root of [(2 times demand times ordering cost)/carrying charge]. Demand. The EOQ's assumptions state that the demand is unchanged. The measure of demand is how much inventory is used annually or how many units are sold annually.

Given,

Annual Requirement = 50,000 ( 5250 x 4 + 3625 x 8)

Carrying cost = 2 per year

Order cost = 1000 per order

Required to calculate EOQ =?

EOQ = square root of [(2 times demand times ordering cost)/carrying charge]

EOQ = √ 2 x 50000 x 1000/2

EOQ = √50,000,000

EOQ = 7071 units

Thus, the EOQ is 7071 units. Economic order quantity is crucial since it aids businesses in effectively managing their inventories. Without these inventory management strategies, businesses will frequently store excess inventory during times of low demand while holding insufficient inventory during times of strong demand. Missed opportunities result from either issue.

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It is important to balance your check book every month Bc

Answers

Answer:

This is one of the reasons it’s a good idea to balance your checkbook more often than once a month, especially if you are newly adopting this financial task. You will have fewer transactions to comb through if you balance once a week or once every two weeks.

Explanation:

the magnitude of operating leverage for perkins corporation is 4.5 when sales are $100,000. if sales increase to $110,000, profits would be expected to increase by what percent? a. 4.5% b.14.5% c.45% d.10%

Answers

It would be anticipated that the profit would rise by 45%. The appropriate response to the given question is option (c).

What is Operating Leverage?

The percentage of a company's cost structure that is made up of fixed expenses as opposed to variable costs is measured by operating leverage. A corporation is said to have more operating leverage if its fixed expenses are higher than its variable costs.

Magnitude of operating leverage= 4.5

Old sales= $100000

New sales= $110000

Percentage increase in sales:

(New-old)/old = (110,000-100,000)/100,000

                       = 10%

Consequently, a percentage rise in profit might be anticipated:

sales percentage growth times the degree of operational leverage

                        = 10% * 4.5

                        = 45%

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All of the following are arguments used by proponents of offshoring except:
a. It creates enormous value for firms and economies.
b. Western firms are able to tap into low-cost and high-quality labor.
c. Firms can focus on their core capabilities.
d. For every dollar spent by US firms on India, the U.S. obtains $1.13.
e. It is not true that some US employees may lose their jobs.

Answers

Answer:

Explanation:

The correct answer is e. It is not true that some US employees may lose their jobs.

Proponents of offshoring often argue for its benefits, but they do acknowledge that some US employees may lose their jobs as a result. The other options listed are commonly cited arguments in favor of offshoring:

a. It creates enormous value for firms and economies: Proponents argue that offshoring can lead to increased efficiency, productivity, and competitiveness, benefiting both companies and the overall economy.

b. Western firms are able to tap into low-cost and high-quality labor: Offshoring allows companies to access labor markets in countries with lower labor costs, enabling cost savings and potentially accessing skilled workers not readily available domestically.

c. Firms can focus on their core capabilities: By offshoring certain tasks or functions, companies can concentrate on their core competencies, leading to increased specialization and efficiency.

d. For every dollar spent by US firms on India, the U.S. obtains $1.13: This argument highlights the potential economic benefits of offshoring, such as increased exports or revenue from foreign markets.

It's important to note that offshoring is a complex and debated topic, and there are differing opinions on its impact and implications for various stakeholders, including employees and local economies.

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All of the following are arguments used by proponents of offshoring except  It is not true that some US employees may lose their jobs. Thus the correct option is E.

Offshoring is the practice of moving a company's commercial operations or specific duties to another country. This is usually done to benefit from cheaper labor costs, gain access to specialized talents or resources, or grow into new markets.

offshore supporters often admit that some US employees may lose their jobs as a result of offshore. They contend, however, that the overall benefits outweigh the potential negative consequences.

Therefore, option E is appropriate.

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In the organizational structure, it is responsible for managing of income and expenses of a company.

Answers

Financial Controller  is responsible for managing of income and expenses of a company.

Who is Financial Controller?

Vital controllers additionally influence direction, anticipating, and planning at the organization level, in view of bookkeeping information.

The FC is a senior forerunner in the money group. Consequently, it's generally expected that employment forms show huge involvement with bookkeeping and assessment issues, in addition to the capacity to direct others and take responsibility for organization's books.

This requires more than just a gift for numbers. Controllers should be coordinated self-administrators, with the abilities to urge the more extensive organization to follow strategies and techniques.

Therefore it is the Financial controller who basically helps in managing the overall income.

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Which statement describes the effect of inflation?

A. Inflation does not affect the value of an object.

B. Inflation does not affect the cost of an object.

C. Inflation increases the cost of an object or decreases the value of
an object.

D. Inflation decreases the cost of an object or increases the value of
an object

Is it C?

Answers

Inflation is a decrease in the purchasing power of money, ... As a currency loses value, prices rise and it buys fewer goods and services

The statement that best describes the situation and the effect of inflation is the option C). Inflation increases the cost of an object or decreases the value of an object.

What is the effect of the inflation?

Inflation refers to the general increase or rise in the prices of goods and services in an economy. It is the rate of increase in prices over a given period of time. It also lowers the values of pensions, savings, and Treasury notes.

Inflation played a very significant role in the development of any country as it effect it in both the negative and positive way. It raises the prices of both the goods and services, which lower down the purchasing power of the people.  

Basically, it can be said that the Inflation occurs when there is a broad increase in the prices of the goods and services.

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legal and illegal labor migrants a. are called guest workers. b. provide many of the foods, goods, and services we consume daily. c. often receive long-term rights and privileges lacking in their nations of origin. d. fill niches that native-born workers want.

Answers

Legal and illegal labor migrants often receive long-term rights and privileges lacking in their nations of origin.

A wrong (from vintage English wrang – 'crooked')[1] is an act that is unlawful or immoral.[2] prison wrongs are normally quite virtually described inside the law of a country and/or jurisdiction. They can be divided into civil wrongs and crimes (or criminal offenses) in common regulation nations,[2] while civil regulation nations tend to have a few extra classes, inclusive of contraventions.

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What is putting-out system examples?

Answers

The putting-out system is a means of subcontracting work. Historically, it was also known as the workshop system and the domestic system. The arrangement between the merchant and the weavers is an example of a putting-out system.

The putting-out system is an economic system that was prevalent in Europe during the 17th and 18th centuries. In this system, a merchant would provide raw materials to a network of rural producers who would work on them at their own homes. These producers would then return the finished products to the merchant who would sell them in the market. The merchant would pay the producers for their labor but also take a significant cut of the profits.

The putting-out system was an early form of industrial production and helped to promote rural industrialization. It provided work to rural communities and helped to spread industrialization beyond urban centers. However, it was also an exploitative system that paid low wages and perpetuated inequality. The putting-out system eventually gave way to the factory system, which was more centralized and efficient but also brought its own set of problems.

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Which of the following is an advantage of operating a business as a private limited company?
a. It is easier to raise finance as the business can sell shares
b. Owners have unlimited liability
C. Partners can provide specialist knowledge and skills
d. It is very quick and easy to set up

Answers

Answer:

a. It is easier to raise finance as the business can sell shares.

Explanation:

A private limited company can be defined as a type of legal hybrid-business structure that can combine both partnership and corporation form of business, and the owners are only responsible for its debts with respect to the amount of capital they have invested.

Some of the characteristics (features) of a private limited company include;

I. Shares can be issued by the private limited company to raise capital.

II. All the shareholders (owners) of a private limited company have limited liability.

III. After the death of a shareholder, a private limited company will continue to operate its business.

An advantage of operating a business as a private limited company is that it is easier to raise finance as the business can sell shares.

However, one of the disadvantages of a private limited company is that the general public are able to view a summary of their business accounts.

Explain how a statement of cash flow can assist users of
financial statements

Answers

The statement of cash flows assists financial statement users by providing information on a company's cash inflows and outflows, helping assess its liquidity, operating performance, investment decisions, financing activities, cash flow quality, and aiding in forecasting and decision-making processes.

A statement of cash flows provides valuable information to users of financial statements by presenting a detailed summary of a company's cash inflows and outflows during a specific period. Here's how it assists users:

Cash Position: Users can assess the company's liquidity and cash position by examining the cash flows from operating activities, investing activities, and financing activities. This information helps evaluate the company's ability to meet short-term obligations, fund future investments, and sustain ongoing operations.Operating Performance: The statement of cash flows helps users understand the cash generated or used in day-to-day operations. By analyzing the net cash provided or used by operating activities, users can assess the company's ability to generate cash from its core business operations. It provides insights into the company's profitability and cash flow sustainability.Investing and Financing Activities: Users can evaluate the company's investment decisions and financing activities by examining the cash flows from these categories. The statement highlights cash spent on acquiring assets (such as property, plant, and equipment) or cash received from asset sales, providing insights into the company's capital expenditures, divestments, and strategic investments. It also reveals cash inflows or outflows from financing sources like issuing or repurchasing stocks, taking on debt, or paying dividends, which helps assess the company's funding structure and financial flexibility.Cash Flow Quality: Users can analyze the composition of cash flows to assess the quality and sustainability of the company's earnings. By comparing net income with operating cash flows, users can identify any discrepancies or red flags that may indicate potential earnings manipulation or cash flow issues.Forecasting and Decision Making: The statement of cash flows assists users in making informed decisions and forecasting future cash flows. By analyzing historical cash flows, users can project future cash inflows and outflows, aiding in budgeting, and investment decisions, and assessing the company's ability to meet financial obligations.

In summary, a statement of cash flows helps users understand a company's cash position, assess operating performance, evaluate investing and financing activities, analyze cash flow quality, and make informed decisions based on cash flow projections. It complements other financial statements and provides essential insights into a company's financial health and liquidity.

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influences of Business environment,​

Answers

Factors that Influence the business environment are :

Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment

The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.

Importance of business environment:

Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.

The economic environment is all the things that create an economic impact on the firm.

The social environment is all the traditions and customs of the society that creates an impact on the firm.

The technological environment is all the impact on the firm caused due to new technology and upgradations.

The political environment is the conditions and behavior that the elected representatives hold toward the business

The legal environment is entirely based on the rules and legislation of the authorities.

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