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What is the return on the market portfolio if the risk-free rate is 5.3 percent. If a stock has a beta of 1.8 and a required rate of return of 12.0 percent and the market is in equilibrium?
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Which would create the most money?
the initial deposit is $6500 and the required reserve ratio is 20 percent
If Cabell Corp bonds pay an annual coupon rate of 10 percent and the investors required rate of return is now 8 percent on these bonds what will be the price?
par value
Suppose a bank has 500000 in deposits a required reserve ratio of 5 percent and bank reserves of 100000 Then the bank can make new loans in the amount of how much?
required reserves is 25,000. the bank has excess reserves of 75,000, they can loan out everything but the required reserves so assuming they have no loans, they can loan up to 475,000.
Determinants of required rates of return?
In this section, we continue our consideration of factors that you must consider when selecting securities for an investment portfolio. You will recall that this selection process involves finding securities that provide a rate of return that compensates you for: (1) the time value of money during the period of investment, (2) the expected rate of inflation during the period, and (3) the risk involved. The summation of these three components is called the required rate of return. This is the minimum rate of return that you should accept from an investment to compensate you for deferring consumption. Because of the importance of the required rate of return to the total investment selection process, this section contains a discussion of the three components and what influences each of them. The analysis and estimation of the required rate of return are complicated by the behavior of market rates over time. First, a wide range of rates is available for alternative investments at any time. Second, the rates of return on specific assets change dramatically over time. Third, the difference between the rates available (that is, the spread) on different assets changes over time. First, even though all these securities have promised returns based upon bond contracts, the promised annual yields during any year differ substantially. As an example, during 1999 the average yields on alternative assets ranged from 4.64 percent on T-bills to 7.88 percent for Baa corporate bonds. Second, the changes in yields for a specific asset are shown by the three-month Treasury bill rate that went from 4.64 percent in 1999 to 5.82 percent in 2000. Third, an example of a change in the difference between yields over time (referred to as a spread) is shown by the Baa-Aaa spread.4 The yield spread in 1995 was only 24 basis points (7.83 - 7.59), but the spread in 1999 was 83 basis points (7.88 - 7.05). (A basis point is 0.01 percent.) Because differences in yields result from the riskiness of each investment, you must understand the risk factors that affect the required rates of return and include them in your assessment of investment opportunities. Because the required returns on all investments change over time, and because large differences separate individual investments, you need to be aware of the several components that determine the required rate of return, starting with the risk-free rate. The discussion in this series of posts considers the three components of the required rate of return and briefly discusses what affects these components
What is the difference between uncontrollable and controllable spending?
Controllable spending is the type of spending that you decide to do. Uncontrollable spending is the type of spending that you have no choice about. Budgets are typically dominated by uncontrollable spending.
Cell that contains 50 percent water is placed in a solution that is 30 percent water The cell and the solution will reach equilibrium when they both contain how much water?
The cell and the solution will reach equilibrium when they each contain 40 percent water. This equilibrium is achieved through osmosis.
When the percent change in price is equal to the percent change in quantity demanded demand is said to be what?
in equilibrium
The Big Bull investment club has a portfolio that contains only two stocks At the end of the year stock A had gone up 8 percent and stock B had gone up 10 percent The total portfolio which had a?
4000.00
When we use verb require and when we use verb required?
required is the past tense or the past participle of verb require.require / required / required.Use require when making present simple sentences egThey require a ten percent deposit. OR The mechanic requires a ten percent deposit. OR She requires a ten percent deposit etc.Use required when making past simple sentences egThe travels agents required a ten percent deposit. OR He required a ten percent deposit etcUse the past participle required when making present/past perfect sentences egThey have required a ten percent deposit. He has required a ten percent deposit.Last year he had required a ten percent deposit.OR when making a passive sentence egA ten percent deposit is required.
What percent of 161 is 70?
Required percent = (70/160)x100% = 43.75%
What did The ten percent required?
a loyalty oath
Security A has an expected return of 7 percent?
Security A is less risky if held in a diversified portfolio because of its negative correlation with other stocks. In a single-asset portfolio, Security A would be more risky because sA> sBand CVA > CVB.
What is the percentage required for science stream?
Fifty percent
The ten percent plan required what?
a loyalty oath
What is the minimum Percentage required for science?
50 percent
What would happen if a cell containing 97 percent water were placed in a 10 percent salt solution?
Water would exit the cell causing the cell to shrink until an equilibrium is reached.
How much percentage is required for add in dha college?
how much percent required in dha collage in karachi
