Business, 27.06.2020 23:01, absports

Stock R has a beta of 2.5, Stock S has a beta of 0.85, the required return on an average stock is 12%, and the risk-free rate of return is 4%. By how much does the required return on the riskier stock exceed the required return on the less risky stock

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 04:00, neariah24

Assume that the following conditions exist: a. all banks are fully loaned up- there are no excess reserves, and desired excess reserves are always zero. b. the money multiplier is 5 . c. the planned investment schedule is such that at a 4 percent rate of interest, investment =$1450 billion. at 5 percent, investment is $1420 billion. d. the investment multiplier is 3 . e.. the initial equilibrium level of real gdp is $12 trillion. f. the equilibrium rate of interest is 4 percent now the fed engages in contractionary monetary policy. it sells $1 billion worth of bonds, which reduces the money supply, which in turn raises the market rate of interest by 1 percentage point. calculate the decrease in money supply after fed's sale of bonds: $nothing billion.

Answers: 2

continue

Business, 22.06.2019 12:00, kaylallangari549

In the united states, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. in the united kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. the united kingdom has a comparative advantage in the production of:

Answers: 2

continue

Business, 22.06.2019 16:40, yovann

Consider two similar industries, portal crane manufacturing (pcm) and forklift manufacturing (flm). the pcm industry has exactly three incumbents with annual sales of $800 million, $200 million and $100 million, respectively. the flm industry has also exactly three incumbents, with annual sales of $500 million, $450 million and $400 million, respectively. which industry is more likely to experience a higher level of rivalry?

Answers: 3

continue

Business, 22.06.2019 17:20, shakira11harvey6

Andy owns islander surfboard inc. in the past, andy has always given his employees bonuses during the holidays if they reached certain sales goals. this year, even though the company is thriving, he decided to cut bonuses from employees and award them to himself instead. what ethical theory of leadership is andy following?

Answers: 1

continue

Do you know the correct answer?

Stock R has a beta of 2.5, Stock S has a beta of 0.85, the required return on an average stock is 12...