![saraaaaaaaa20](/avatars/41846.jpg)
saraaaaaaaa20
05.09.2020 •
Business
A stock with a beta of 1.8 has an expected rate of return of 16%. If the market return this year turns out to be 6 percentage points below expectations, what is your best guess as to the rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)
Solved
Show answers
More tips
- H Health and Medicine Choosing the Right Contraception Method: Your Ultimate Guide...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- C Computers and Internet How to Learn to Type Fast?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
- F Family and Home How to Get Rid of Your Neighbors?...
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
- H Health and Medicine How to Cure Adenoids?...
Answers on questions: Business
- B Business Cosmo breaks his fly rod while fly fishing in a remote area of Colorado. He goes to the local fly shop to buy a new rod, expecting to pay a considerable mark-up...
- B Business Innovation is the creation of something new that makes money. In order to be profitable, innovations must be both novel and useful. a. True b. False...
- B Business What is the difference between monetary and fiscal policy? A Monetary policy is controlled by the federal government while fiscal policy is controlled by the Federal...
- B Business The Riegle-Neal Interstate Banking and Branching Efficiency Act permits banks to acquire an unlimited number of branches nationwide. This increased competition...
- B Business One of the reasons for new-product failures is that the products a. are test marketed in locations isolated from the media. b. offer no discernible benefits compared...
- B Business If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the...
- H History Why was Ronald Reagan known as The Great Communicator ? Choose 1 A Trained as an actor, Reagan was a skilled and comfortable public speaker. Reagan was particularly...
- B Business Help please!! 10. What are the differences between Domestic, Foreign & Alien corporations? 11. What are owners of a corporation called? 12. When can a corporation...
- E English 1. List 5 ways in which Goebells prepared Berlin for visitors....
- M Mathematics Tapéis raked 5% leaves than Adam raked. Tapita raked 357 liters of leaves....
Ответ:
5.2%
Explanation:
A stock has a beta of 1.8
The expected rate of return is 16%
= 16/100
= 0.16
The market return turns out to be 6% below the expection
The first step is to calculate the decrease in the expected return
= beta× decrease in the market return
= 1.8× 6/100
= 1.8 × 0.06
= 0.108
Therefore the rate of return inn the stock can be calculated as follows
= 0.16-0.108
= 0.052×100
= 5.2%
Hence the rate of return on the stock is 5.2%
Ответ:
I think incidental beneficiary. Because they unintentionally (to Clark) benefitted from being able to keep Clark's money.