Compute the required rate of return on two stocks with beta values of 0.5 and 2 respectively assuming the risk-
free rate of 5% and the market return of 10% using the capital asset pricing model. Please show work. Thank you.

Answers

Answer 1

The required rate of return for the stock with a beta of 0.5 is 7.5% and for the stock with a beta of 2 is 15%.

What is Rate of return?

Rate of return is the amount of profit or loss earned on an investment over a certain period of time, expressed as a percentage of the initial investment or total asset value.

What is stock?

A stock is a type of security that represents ownership in a company. Investors buy stocks to become shareholders and share in the company's profits and losses.

According to the given information:

The Capital Asset Pricing Model (CAPM) is expressed as:

R = Rf + beta*(Rm - Rf)

Where:

R = Required rate of return

Rf = Risk-free rate of return

beta = Beta coefficient (systematic risk)

Rm = Expected market return

Using the given values, we can compute the required rate of return for each stock:

Stock with beta of 0.5:

R = 5% + 0.5*(10% - 5%)

R = 7.5%

Stock with beta of 2:

R = 5% + 2*(10% - 5%)

R = 15%

Therefore, the required rate of return for the stock with beta of 0.5 is 7.5%, and the required rate of return for the stock with beta of 2 is 15%.

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Related Questions

Which of the following options correctly describes the given statement?
Mark all that apply. (There is more than 1 answer.)
r
r
r
r
Г
The statement can be written as a biconditional: Two angles are complementary if
and only if the sum of their measures is 90.
The converse of the statement is false.
The statement is false.
The converse of the statement is true.
Ev
A
counter-example to prove the converse is false is: a Linear pair of angles are not
complementary, they add up to 180.
The statement is true.

Answers

The answers are given below:

The statement can be written as a biconditionalThe converse of the statement is falseA counter-example to prove the converse is false is: a Linear pair of angles are not complementary, they add up to 180.

What is a Conditional Statement?

A conditional statement is a form of logical statement that consists of two parts: a conclusion and an antecedent (sometimes known as a "if-clause")  

If p, then q is a common way to represent the link between the hypothesis and the conclusion, where p stands for the hypothesis and q for the conclusion.

Therefore, the correct options are:

The statement can be written as a biconditional: Two angles are complementary if and only if the sum of their measures is 90.

The converse of the statement is false.

A counter-example to prove the converse is false is: a Linear pair of angles are not complementary, they add up to 180.

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What is the difference between saving and
investing? Provide examples.

Answers

The difference between saving and investing is that saving is just having you money together and not spending it but investing is spending but you make money

Answer:

What is Saving?

Saving means to keep money aside, not using it for any purpose at all, until in reach of desired goal. While some save for emergencies, others save for family or materials.

Example: My father is saving for a really nice vacation trip to Canada. He needs enough money to pay for gas, the hotel rooms, food and other necessities.

What is Investing?

Investing is the practice of putting interest into something. Investing involves paying for something in increments while also having flowy income. You could invest in almost anything.

Example: My mother and I are investing into a large, family-sized, RV. We are making custom arrangements and changes while we are still living in, and keeping our tiny-home.

what is the constant of proportionally in th equation 2y= 2x

Answers

Answer:

The constant of proportionality in the equation 2y = 2x is 1.

Note that this equation is actually the same as y = x, which is a linear equation with a slope of 1 and a y-intercept of 0. In this case, the coefficient of x (which is 2) is not the constant of proportionality because it does not represent a proportional relationship between x and y. Instead, the constant of proportionality is the ratio of the change in y to the change in x, which is 1.

If the common ratio is 0.6, what is the percent change?
Include the percentage symbol with your answer.

Answers

Answer:

If the common ratio is 0.6, then the percent change is a decrease of 40%.

If the common ratio is 0.6 then the percent change is 40%

What is Percentage?

percentage, a relative value indicating hundredth parts of any quantity.

The percent change for a geometric sequence with common ratio r is given by the formula:

percent change = (r - 1) × 100%

In this case, the common ratio is 0.6, so the percent change is:

percent change = (0.6 - 1) × 100% = -0.4 × 100% = -40%

The percent change is negative, which means the sequence is decreasing.

Hence, If the common ratio is 0.6 then the percent change is 40%

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what is the side length of the dilated square?

Answers

The side length of the dilated side would be 3 cm.

How to find the side length ?

The area of the original square is 16 cm ², so its side length is √ 16 = 4 cm.

When the square is dilated by a factor of 0. 75, its area will be reduced to ( 0. 75 ) ² times the original area , which would then be:

= ( 0.75 ) ² x 16 cm ² = 9 cm²

Therefore, the area of the scaled square is 9 cm². The area of a square equals to the size of its side duration, thus we can locate the side length of the magnified square by extracting the square root of its area:

√ 9 cm = 3 cm

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An ice cream container is 20 cm long, 10 cm wide and 6 cm high. How many liters of ice cream can it hold?

Answers

The Ice Cream container will hold 1.2 liters of Ice Cream.

The Volume of Ice Cream can be calculated by Cubical Volume Equation V=l*b*h _______(1). We Have the data : Length = 0.2 meters, Width = 0.1 meters, Height = 0.06 meters

Now Having the Values of Length, Height & Width. Putting these Values in The Equation (1),

Volume = 0.2*0.1*0.06 m³

Volume = 0.0012 m³

We have got the Volume of Ice Cream that can be contained by the Container in . To Convert into Liters, we have equation 1 m³=1000 Liters. According to this, The Volume of Ice Cream Contained in The Container will be 1.2 Liters.

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Is the following function one to one? f(x) = (x + 2)²
Yes No​

Answers

Answer:

Yes, the function f(x) = (x + 2)² is one-to-one.

The coordinates of the vertices of DEF are D(2,3), E(4,0), and F(1,−2). The coordinates of the vertices of TVW are T(0,3), V(−2,0), and W(1,−2).

Answers

Answer:

To find the equation of the line containing the segment DE, we can use the coordinates of D and E to find the slope:

slope = (change in y) / (change in x) = (0 - 3) / (4 - 2) = -3/2

We can use the point-slope form of the equation of a line, using either D or E as the point:

y - 3 = (-3/2)(x - 2)

Simplifying this equation, we get:

y = (-3/2)x + 6

Similarly, to find the equation of the line containing the segment EF, we can find the slope using the coordinates of E and F:

slope = (change in y) / (change in x) = (-2 - 0) / (1 - 4) = 2/3

Using either E or F as the point, we can write the equation in point-slope form:

y - 0 = (2/3)(x - 4)

Simplifying, we get:

y = (2/3)x - (8/3)

To find the equation of the line containing the segment TV, we can find the slope using the coordinates of T and V:

slope = (change in y) / (change in x) = (0 - 3) / (-2 - 0) = 3/2

Using either T or V as the point, we can write the equation in point-slope form:

y - 3 = (3/2)(x - 0)

Simplifying, we get:

y = (3/2)x + 3

Finally, to find the equation of the line containing the segment VW, we can find the slope using the coordinates of V and W:

slope = (change in y) / (change in x) = (-2 - 0) / (1 - (-2)) = -2/3

Using either V or W as the point, we can write the equation in point-slope form:

y - 0 = (-2/3)(x - (-2))

Simplifying, we get:

y = (-2/3)x + (4/3)

Answer:

are reflection across the y-axis and translation 2 units right.

Step-by-step explanation:

Anton must pay a co-pay of $30 for an office visit. His insurance company will then pay 85% of the cost of the visit.

How much will Anton pay for an office visit that costs $270?

Answers

Answer: I think the answer is $229.5, or $259.5 since it says he has to pay $30

Step-by-step explanation: Just multiply 270 by the percent as a decimal. 85% is equal to 0.85 and that multiplied by 270 is 229.5

Find the slope of the line, then write the equation of the line in slope-intercept form.

Answers

y = x - 4 is  the equation of the line in slope-intercept form.

How do you interpret a slope-intercept form?

The data provided by that form can be used to graph a linear equation in slope-intercept form. As an illustration, the equation y=2x+3 indicates that the line's slope is 2 and that its y-intercept is located at (0,3). This reveals the single point at which the line passes as well as the direction in which we should draw the full line after that.

Point from graph = (2, -2 )

                slope (m) = y/x

                                = -2/2

                                = 1

slope-intercept form ⇒ y = mx + c    

                                        -2 = 1 * 2 + c

                                          - 2 = 2 + c

                                               c = -4

         

 slope-intercept form ⇒ y = x - 4

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what is the volume of this figure?

Answers

The volume of the hexagonal prism is 374.13 cubic inches.

What is apothem of a polygon?

The distance from a regular polygon's centre to one of its sides' midpoints is known as the apothem. In other terms, it is the greatest circle whose radius fits inside the polygon. The apothem runs through the middle of the polygon and is perpendicular to the side it touches. All apothems are equivalent in a regular polygon.

For regular polygons, the apothem is a crucial quantity because it is used to determine the polygon's area. The formula: can be used to determine the area of a regular polygon.

A = apothem x perimeter x (1/2)

The volume of the hexagonal prism is given by the formula:

V = B x h

Here, B is the base area thus,

Given the base area = 41.57 sq. in and height = 9 in we have:

V = (41.57)(9) = 374.13 cubic inches.

Hence, the volume of the hexagonal prism is 374.13 cubic inches.

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x is atleast 12 inequality ​

Answers

The statement can be written as the inequality:

x ≥ 12

How to write that as an inequality?

We know that x is at least 12, so x can be equal to 12, or larger. We want to write that as an inequality, and it can be written as:

x ≥ 12

The symbol:

"≥"

Means that the thing in the left is larger or equal than the thing in the right, so that inequlity represents the given statement.

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What is the distance from home to library?​

Answers

Check the picture below.

[tex]~~~~~~~~~~~~\textit{distance between 2 points} \\\\ (\stackrel{x_1}{2}~,~\stackrel{y_1}{1})\qquad (\stackrel{x_2}{5}~,~\stackrel{y_2}{7})\qquad \qquad d = \sqrt{( x_2- x_1)^2 + ( y_2- y_1)^2} \\\\\\ d=\sqrt{(~~5 - 2~~)^2 + (~~7 - 1~~)^2} \implies d=\sqrt{( 3 )^2 + ( 6 )^2} \\\\\\ d=\sqrt{ 9 + 36 } \implies d=\sqrt{ 45 }\implies d\approx 6.7[/tex]

Data show that men between the ages of 20 and 29 in a general population have a mean height of 69.3​ inches, with a standard deviation of 2.7 inches. A baseball analyst wonders whether the standard deviation of heights of​ major-league baseball players is less than 2.7 inches. The heights​ (in inches) of 20 randomly selected players are shown in the table.

Answers

The crucial t-value is determined to be 1.734 using a t-table with 19 degrees of freedom and a significance threshold of 0.05 for a one-tailed test.

What is null hypothesis?

A type of statistical hypothesis known as a null hypothesis claims that a certain collection of observations has no statistical significance. The viability of hypotheses is evaluated using sample data. known as "zero" at times and represented by the letter H0. The assumption made by researchers is that there is a relationship between the variables. The null hypothesis, on the other hand, asserts that such a connection does not exist. Although it might not seem significant, the null hypothesis is an important part of research.

We may run a one-tailed t-test for the standard deviation to test the hypothesis that the standard deviation of heights of major-league baseball players is less than 2.7 inches.

The following formula may be used to get the sample standard deviation of the players' heights among the 20 chosen at random:

where n is[tex]s = 1/(n-1) * \sum(x' - x)^2 = 1/(20-1) * (1.83-1.755)^2 + ... + (1.9-1.755)^2 = 0.0414[/tex] the sample size, xi is the player's height at position i, and x is the average player's height in the sample.

The test statistic may then be calculated as follows:

[tex]t = (n-1) * s^2 / \sigma ^2 = 19 * 0.0414^2 / 2.7^2 = 0.197[/tex]

The crucial t-value is determined to be 1.734 using a t-table with 19 degrees of freedom and a significance threshold of 0.05 for a one-tailed test.

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I need help with this ASAP

Answers

Answer:

the answer is (HK) Because gj is the only other line that goes across the circle but it is not an option.

What is a coterminal angle of pi/4?

9pi/4 pi/2 3pi/4

Answers

The angle 9pi/4 is a positive coterminal angle of pi/4.

What is a coterminal angle?

Two angles are called coterminal if they have the same initial and terminal sides. In other words, two angles are coterminal if they differ by a multiple of 360 degrees or 2π radians. For example, 30 degrees and 390 degrees are coterminal angles, as are π/4 and 9π/4.

A coterminal angle of pi/4 can be found by adding or subtracting any multiple of 2pi until we get an angle between 0 and 2pi that is equivalent to pi/4.

One way to find a positive coterminal angle is to add 2pi:

pi/4 + 2pi = 9pi/4

So, The angle 9pi/4 is a positive coterminal angle of pi/4.

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Jackson invested $52,000 in an interest rate of 2.1% compounded continuously assuming no deposits or withdraws are made how much money to the nearest dollar would be in the account after 17 years

Answers

The amount of money in the account after 17 years, to the nearest dollar, would be $76,956.

What is the formula for the future value?

The formula for the future value of an investment with continuous compounding is [tex]A = Pe^{(rt)}[/tex] where A is the future value, P is the principal (initial investment), e is the mathematical constant approximately equal to 2.71828, r is the annual interest rate as a decimal, and t is the number of years.

Putting in the given values,

[tex]A = 52000 \times e^{(0.021 \times 17) }\\ A ≈ 76,956.18[/tex]

Therefore, the amount of money in the account after 17 years, to the nearest dollar, would be $76,956.

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NEED HELP NOW DUE TODAY

Warren is building shelves for his 3-D printed model collection. He has a piece of wood that is 4.5 feet long. After cutting five equal pieces of wood from it, he has 0.7 feet of wood left over.


Part A: Write an equation that could be used to determine the length of each of the five pieces of wood he cut. (1 point)


Part B: Explain how you know the equation from Part A is correct. (1 point)


Part C: Solve the equation from Part A. Show every step of your work. (2 points)

Answers

Part A: The equation that could be used to determine the length of each of the five pieces of wood cut by Warren is: x + 0.7 = 4.5

Part B: The equation from Part A is correct because it takes into account the total length of the wood (4.5 feet), as well as the amount of wood that is left over (0.7 feet).

Part C: the length of each of the five pieces of wood cut by Warren is 3.8 feet.

What is equation?

It is made up of two mathematical objects, with an equals sign (=) between them. Equations are used to represent relationships between unknown variables and can be solved to find their values.

Part A:

The equation that could be used to determine the length of each of the five pieces of wood cut by Warren is: x + 0.7 = 4.5, where x is the length of each piece of wood.

Part B:

The equation from Part A is correct because it takes into account the total length of the wood (4.5 feet), as well as the amount of wood that is left over (0.7 feet).

This equation can be used to calculate how much wood Warren has cut off from the original 4.5 feet of wood, which is the length of each of the five pieces of wood.

Part C:

Solving the equation from Part A:

x + 0.7 = 4.5

Subtract 0.7 from both sides:

x + 0.7 - 0.7 = 4.5 - 0.7

x = 3.8

Therefore, the length of each of the five pieces of wood cut by Warren is 3.8 feet.

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A sequence is represented by the explicit formula an = 14 +9n
What is a 26?
262
14
234
248

Answers

Answer:

a₂₆ = 248

Step-by-step explanation:

to find the 26th term substitute n = 26 into the explicit formula

a₂₆ = 14 + 9(26) = 14 + 234 = 248

45 POINTS! Three balls are packaged in a cylindrical container. The balls just touch the

top, bottom, and sides of the cylinder. The diameter of each ball is 13 cm.

a. What is the volume of the cylinder rounded to the nearest cubed centimeter

b. What is the total volume of the three balls rounded to the nearest cubed centimeter?

c. What percent of the volume of the container is occupied by the three balls?

Answers

Answer:

a) 5177 cubic centimeters

b) 3451 cubic centimeters

c) 66.66% (67%)

Step-by-step explanation:

a) V=pi*r2*h

   V=pi*6.5^2*39

   V=5176.5593

b) V=4/3*pi*r^3

   V=4/3*pi*6.5^3

   V=1150.34651

remember we have to multiply by 3 since there are 3 balls:

   V=3451.03953

c) 3451/5177=0.66660*100=66.66%

I NEED HELP PLS WILL MARK BRAINLIEST!!!!!!!

Answers

Answer: x= 75.52 deg

Step-by-step explanation:

1) cos x = adjacent/hypotenuse

  cos x = 2 / 8

  x = cos^-1(2/8)

  x= 75.52 deg

What is the value of x?

sin(x+16)°=cos(2x+14)°

Enter your answer in the box.

Answers

The value of x for which sin(x+16)°=cos(2x+14)° is 20

How to determine the value?

Trigonometry is a branch of mathematics concerned with relationships between angles and ratios of lengths

The given equation says:

sin(x+16)°=cos(2x+14)°

Remember that sin(90-x) = cos x

Applying this formula we have

So comparing we have,

sin(x+16)°=cos(2x+14)°

90 - (x + 16) = 2x +14

distributing - over the bracket

90 -x - 16 = 2x + 14

bringing like terms together,

90-16-14 = 2x +x

60 = 3x

Dividing both sides by 3,

x =20

Therefore the value of sin(x+16)°=cos(2x+14)° is 20⁰

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You are a researcher studying the lifespan of a certain species of bacteria. A preliminary sample of 25 bacteria reveals a sample mean of
¯x=64 hours with a standard deviation of s=4.2 hours. You would like to estimate the mean lifespan for this species of bacteria to within a margin of error of 0.6 hours at a 95% level of confidence.

What sample size should you gather to achieve a 0.6 hour margin of error? Round your answer up to the nearest whole number.

n = bacteria

Answers

Answer:

567

Step-by-step explanation:

n

Graph the solution to 4 - 2 x ≥ 10 on the number line. plot an exclusive point.

Answers

The solution to the inequality, 4 - 2x ≥ 10, is x ≤ -3.

The graph is shown below.

How to Graph an Inequality?

To graph the solution to the inequality given, we have to first of all solve for the possible values of x in the given inequality.

Given the inequality,  4 - 2x ≥ 10, we have:

4 - 2x ≥ 10

Subtract 4 from both sides:

4 - 4 - 2x ≥ 10 - 4

-2x ≥ 6

Divide both sides by -2:

-2x/-2 ≤ 6/-2

x ≤ -3

This means that the values of x are equal to -3 or less than -3.

The graph below shows the solution.

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Select the correct answer from each drop-down menu.
Consider right triangle ABC.
A
sin(A) =
cos(A) =
Reset
40
41
11
=
Next
B
9
C

Answers

Answer:

sinA =9/41. CosA=40/41

Step-by-step explanation:

in right triangles, the sine, cosine and tangent represent ratios of the sides of a triangle. Sine of an angle is the ratio of the side opposite the angle divided by the hypotenuse and the cosine of the angle is side adjacent (touching) the angle divided by the hypotenuse.

The value of Sin A = 9 / 41 and the value of Cos A = ( 40 / 41).

What is trigonometry?

The branch of mathematics sets up a relationship between the sides and the angles of the right-angle triangle is termed trigonometry.

here, we have,

The values of the angels will be calculated by using the trigonometry property.

Sin A = Perpendicular / Hypotenuse

Sin A = 9 /41

Cos A = Base / Hypotenuse

Cos A =  40 / 41

Therefore the value of Sin A = 9 / 41 and the value of Cos A = ( 40 / 41).

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The principal at Carr Elementary and Middle School bought candy bars to be given to
teachers for Teacher Appreciation Week. Her first order was for 36 candy bars and
she paid $27. The second order was for 24 candy bars and she paid $18. The
relationship between candy bars and the amount paid is proportional, Write an
equation to represent the relationship, where y is the number of candy bars and * is
the cost, in dollars.

Answers

The equation that represents the relationship between x and y, where y is the number of candy bars and x is the cost in dollars, is x = 0.75y.

What is an equation?

An equation is a mathematical statement showing the equality or equivalence of two or more mathematical expressions.

Equations contain mathematical expressions with the equal symbol (=).

                                                     First Order    Second Order

The number of candy bars               36                  24

The total cost of order                   $27                 $18

The unit cost per candy bar =       $0.75           $0.75

                                                ($27 ÷ 36)       ($18 ÷ 24)

Let the number of candy bars bought = y

Let the cost of the candy bars = x

Equation:

36x = $27

x = $0.75

Similarly, 24x = $18

x = $0.75

Therefore, the equation representing the relationship is:

x = 0.75y

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CAN SOMEONE IN THE UNIVERSE HELP ME!!!!

Answers

Answer:

Step-by-step explanation:

Formula for trapezoid:

A=[tex]\frac{1}{2}[/tex](b1 + b2)h

1.  b1=5    b2=23  h=12

A=1/2(5+23)12

=168

AsAp need helllpppppppp

Answers

The value of x is 31/64 or 0.484375 and the value of 61/64 is given by adding the value of 29/64 and 31/64 which is 0.9375.

How to convert a fraction to a decimal?

To convert a fraction to a decimal, you need to divide the top number by the bottom number. Here are the steps to follow:

1. Fraction should be written as numerator (top) divided by denominator (bottom).

2. Divide the numerator by the denominator using long division or a calculator.

3. Keep dividing until you get a decimal that terminates or repeats.

a) The given equation is

       [tex]\frac{61}{64} = \frac{29}{64} + x[/tex]

       [tex]\frac{61}{64} - \frac{29}{64} = x[/tex]

       [tex]x = \frac{31}{64}[/tex]

b) Now 31/64 = 0.484375 and given that 29/64 = 0.453125

Hence from the equation 61/64 = 29/64 + 31/64 = 0.453125 + 0.484375

= 0.9375.

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Each spinner below is spun one time. X represents that number of spins that land on 2. Which table correctly displays the probability distribution?

Answers

The probability distribution for the number of spins that land on two is given as follows:

P(X = 0) = 0.5625.P(X = 1) = 0.375.P(X = 2) = 0.0625.

How to calculate a probability?

A probability is calculated as the division of the desired number of outcomes by the total number of outcomes in the context of a problem/experiment.

Each spinner has a 3/4 probability of not landing on two, hence the probability of landing on two zero times is given as follows:

P(X = 0) = 3/4 x 3/4

P(X = 0) = 9/16

P(X = 0) = 0.5625.

For two times, the probability is given as follows:

P(X = 2) = 1/4 x 1/4

P(X = 2) = 1/16

P(X = 2) = 0.0625.

Hence the probability of one landing is given as follows:

P(X = 1) = 1 - (0.5625 + 0.0625)

P(X = 1) = 0.375.

(considering complementary events)

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Find the value of x needed to make the equation true.

Answers

Answer:

x = -3

Step-by-step explanation:

We know that,

[tex]\sf a^x*a^y=a^{x+y}\\\\(a^x)^y=a^{xy}\\\\\frac{a^x}{a^y} =a^{(x-y)}[/tex]

Accordingly,

[tex]\sf \frac{(7^{10})^2}{7^4} =\frac{7^9*7^{10}}{7^x} \\\\\sf \frac{7^{10*2}}{7^4} =\frac{7^{9+10}}{7^x} \\\\\sf \frac{7^{20}}{7^4} =\frac{7^{19}}{7^x}\\\\7^{20-4}=7^{(19-x)}\\\\16=19-x\\\\16-19=x\\\\-3 =x[/tex]

Other Questions
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