answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vivado
29 days ago
14

Two central components of the CAPM are the​ ________. A. riskminus free rate and the market risk premium B. risk premium and the

inflation rate C. market rate and the inflation premium D. inflation rate and the market rate
Business
1 answer:
soldi70 [3.1K]29 days ago
7 0

Answer:

A. risk-free rate and the market risk premium

Explanation:

The Capital Asset Pricing Model (CAPM) is used to determine the expected rate of return. Its formula is as follows:

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

Where, the term (Market rate of return - Risk-free rate of return) is referred to as the market risk premium and it is used for calculations.

You might be interested in
Kendra owns a sporting goods store. She is in court because of a breach of contract lawsuit against her supplier. One of the ter
arsen [2965]

Response:

Yes, but it's primarily to clarify the unclear terms of the contract

Explanation:

Breach of contract is a valid reason for action that reflects a common grievance where at least one party to the agreement does not adhere to what was reasonably expected of the anticipated transaction, either by failing to perform or obstructing the other party's fulfillment. A significant breach represents the most serious type of agreement violation. Such instances occur when a party has failed

to

fulfill their contractual obligations as outlined in the agreement. Consequently, the affected party may pursue damages through a formal lawsuit. For instance, if a contractor completes an assignment but is not compensated, it constitutes a significant breach.

6 0
11 days ago
Work Breakdown Structures typically include one or more intermediate levels. Which of the following statements correctly describ
marusya05 [3091]

Answer:

c. Typically, they illustrate the elements that must be developed to generate the final deliverables.

Explanation:

The Work Breakdown Structure (WBS) serves as a method employed by project managers to systematically break down deliverables into smaller parts. It provides a structure that can be utilized for additional planning tasks. These are presented in an indented outline layout.

6 0
10 days ago
Why is using cash unhelpful when a person wants to apply for a loan in the near future?
stepan [3001]
Using cash is counterproductive and disadvantageous because relying solely on it leads to a lack of credit history, making it difficult for banks to assess your reliability for loan repayment.

7 0
1 month ago
Toni makes apple pies for the local bakery. When Toni works with an assistant, she produces 60% more apple pies and works 20% fe
stepan [3001]

Respuesta:

La respuesta es 200%.

Explicación:

Supongamos que Toni produce x tartas de manzana en y horas.

Esto significa que el ritmo de producción es \frac{x}{y} tartas por hora.

Trabajando con un asistente:

Toni incrementa su producción en un 60%, es decir, ahora hace x + 0.6x = 1.6x tartas.

Además, reduce su tiempo trabajando en un 20%, entonces trabaja y - 0.2y = 0.8y horas.

Por lo tanto, la tasa de producción con ayuda es 1.6x / 0.8y = \frac{\frac{1.6x}{0.8y} }{\frac{x}{y} } X 100.

Al simplificar, obtenemos un aumento del 200% en la producción por hora.

6 0
1 month ago
Read 2 more answers
Which loan created a habit where the borrower kept coming back to request an extension?
Free_Kalibri [3151]
Extension requests are quite common due to the buyer's viewpoint on bridging finance and the varied reasons for both requirements. The more prevalent explanations include: Securing planning approvals has taken longer than anticipated. Once a deal is negotiated, the borrower waits for contracts to be exchanged. The lender requires additional resources and time to complete the project. A refurbishment assessment was unexpectedly delayed. The lender postpones refinancing the debt until a new lender has completed their research. At the last moment, the buyer interested in the lender's property withdraws, leading the borrower to re-list the property. In the final moments, the previous buyer deciding against refinancing forces the lender to seek out a new mortgage company.
4 0
22 days ago
Other questions:
  • When sam goes to a restaurant, he always tips the server $2 plus 10% of the cost of the meal. if sam’s distribution of meal cost
    7·1 answer
  • Explain why the scene below fails to meet the definition of professionalism. Situation: Brian, an employee at Just For Hue Ink c
    11·2 answers
  • : A Notary Signing Agent decides to expand his business by offering new services. With respect to advertising, the NSA should av
    6·1 answer
  • Just before Henderson Laboratories opened for business, Eugene Henderson, the owner, had the following assets and liabilities. C
    15·1 answer
  • Tuscan Inc. had a retained earnings balance of $60,000 at December 31, 2018. During the year, Tuscan had the following selected
    13·1 answer
  • In a transaction that qualifies under Section 351, Buster transfers an asset with a basis of $50,000 and a fair market value of
    12·2 answers
  • Omar is presenting a persuasive speech to convince his class to begin investing for retirement early in life. He begins with a p
    13·1 answer
  • Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10, n/30. Elkhorn returned merchan
    9·1 answer
  • Lacy hired richard to paint her house. richard took too many jobs and realized that he did not have time to complete them all, s
    13·1 answer
  • Madeline spends all of her spare money on widgets, which cost $2 each, and gizmos, which cost $3 each. What is her opportunity c
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!