based on the capital asset pricing model (capm), there is generally blank relationship between beta and the expected return on a security.

Answers

Answer 1

Based on the Capital Asset Pricing Model (CAPM), there is generally a positive relationship between beta and the expected return on a security.

The CAPM is a widely used financial model that helps investors and analysts estimate the expected return on an investment. It states that the expected return of a security is equal to the risk-free rate plus a risk premium, which is determined by the beta of the security. Beta is a measure of a security's sensitivity to market movements. It indicates how much the price of the security is expected to move in relation to the overall market. A beta greater than 1 suggests that the security is more volatile than the market, while a beta less than 1 indicates lower volatility compared to the market.

According to the CAPM, securities with higher betas are expected to have higher expected returns, reflecting the additional risk associated with investing in those securities. This is because investors demand a higher return for taking on more risk. Conversely, securities with lower betas are expected to have lower expected returns, as they are considered less risky.

It's important to note that the relationship between beta and expected return is not always linear or exact for every security. Other factors, such as market conditions, company-specific risks, and investor preferences, can also influence the expected return. However, in general, the CAPM suggests a positive relationship between beta and expected return, indicating that higher beta securities should provide higher expected returns to compensate for the additional risk.

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Related Questions

when a business makes an unethical decision and then rationalizes it by saying it is only a small issue, is an example of:

Answers

when a business makes an unethical decision and then rationalizes it by saying it is only a small issue, is an example of Categorical Imperative.

A business can fail due to unethical decisions. Dishonest practices, such as fabricating financial data, overcharging, or deceptive marketing, can damage a company's reputation and cost it clients and money. Unethical behavior is occasionally against the law and can land executives in penalties and even prison.

Based on irrational expectations of success, employees may decide to act unethically. For instance, a salesperson might present incorrect information to close a deal and reach their quota. Employees at Wells Fargo created fictitious accounts and credit cards in their clients' names in order to meet quota.

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Which margin is at the very bottom of the page when printing worksheets?

top margin
bottom margin
header margin
footer margin

Answers

Answer:

Footer Margin

Explanation:

Just took this :)

Answer:

Footer Margin

Explanation:

If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the monetary base is.

Answers

The monetary base is $501 billion if the required ratio is 10%.

What is the Monetary base?

We know that,

M1 Multiplier

=1+c/r+c+e

Monetary base is =r+c

hence it becomes 501 billion

An essential idea in monetary economics is shown by the definition of the monetary base. Every nation has a central bank that creates, regulates, and oversees the flow of currency. For instance, the US monetary base is managed by the Federal Reserve, which is the country's central bank.Open market operations or conventional monetary policy measures are used by central banks to regulate the MB. For instance, the US's MB value varies when the Federal Reserve buys and sells US Treasury Bonds. through making open-market purchases of government bonds.

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write me a 8 sentence pitch or more for a donut shop

Answers

Answer:

come down to our donut shop. please come down and get some donuts. we sell the best donuts here. thank you for your consideration.

we hope you enjoy our donuts.

Explanation:

haha

An employee has enrolled in his company's nonqualified deferred compensation plan. The benefit paid at the time of the employee's retirement is:_______.
A) taxable as ordinary income to the employee and can be taken as a deduction by the employer.
B) taxable as ordinary income to the employee with no benefit allowed to the employer.

Answers

Answer:

A) taxable as ordinary income to the employee and can be taken as a deduction by the employer.

Explanation:

When an employee defers to receive the compensation plan he gets the benefit of lower tax bracket each year, ultimately decreasing his tax liability.

Further when he receives the complete amount his income stands taxable. Accordingly at that time ordinary tax rates as per FICA are applicable.

On the employers part it is only deductible when the employee includes it in the income of the year, and pays tax on such compensation received.

Thus, when he receives it as compensation on retirement it is normally taxable at ordinary rates to the employee and deduction can be claimed by the employer.

In for peny, in for a pound , taking care of the rands and cents​

Answers

Answer:

l don't understand the question you ask

Which of the following marketing fundamentals applies solely to the hospitality and tourism industry? A.interdependence of organizations B.sequential steps in marketing C.key role of marketing research D.continuous nature of marketing

Answers

Answer:

key role of marketing research

Answer:

interdependence of organizations

Explanation:

Edge 2021 :)

Which of the following marketing fundamentals applies solely to the hospitality and tourism industry?

Write the name of any five organic fertilizers and describe any one them.​

Answers

One example of an organic fertilizer is compost. Compost is made from decomposed organic materials such as kitchen scraps, yard waste, and other biodegradable materials.

What is Fertilizers?

Fertilizers are substances added to soil or other growing mediums to provide essential plant nutrients that are deficient or absent in the soil. They are used to enhance the growth, yield, and quality of crops, and can be organic or inorganic in nature. Fertilizers contain essential plant nutrients such as nitrogen, phosphorus, and potassium, as well as other secondary and micronutrients that are important for plant growth and development. The use of fertilizers can help increase agricultural productivity and improve food security, but it is important to use them responsibly to minimize negative impacts on the environment.

Compost

Manure

Bone meal

Fish emulsion

Blood meal

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A local coffee shop is giving out free mini-size brewed coffee to entice consumers to come in the shop and try its products. The giveaways are called ______.

Answers

Answer:

Free Sample Marketing

Explanation:

This is the answer because when you give away free products it makes people want to buy it because it taste good or is good.

On January 2, 2020, Howdy Doody Corporation purchased 14% of Ranger Corporation's common stock for $59,000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $12,000 and $55,000, respectively. During 2020, Ranger declared and paid a dividend of $63,000. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $69,000. How much should Howdy Doody show in the 2020 income statement as income from this investment?
a. $16,000.
b. $8,820.
c. $10,000.
d. $18,820.

Answers

Answer:

D

Explanation:

$18,820.

You may need to use the appropriate appendix table to answer this question.

Only 0.03% of credit card holders of a company report the loss or theft of their credit cards each month. The company has 20,000 credit cards in the city of Memphis. Use the Poisson probability tables to answer the following questions. (Round your answers to four decimal places.)

What is the probability that during the next month in the city of Memphis, every credit card is lost or stolen?

Answers

The probability that during the next month in the city of Memphis, every credit card is lost or stolen is approximately 0.0025.

We are given that the proportion of credit card holders who report loss or theft of their credit cards is 0.03%. We have to find the probability that every credit card is lost or stolen during the next month in the city of Memphis.

To solve the above problem, we have to use the Poisson distribution formula.

Poisson distribution formula is:

P(x; μ) = (e^-μ) (μ^x) / x!

Here,x = 0 (every credit card is lost or stolen)

μ = mean or average number of successes in the given time interval= λ × t, where

λ = rate of success, which is the expected number of successes per unit time or space.

For this problem,λ = number of credit card holders who report loss or theft of their credit cards= 0.03% of 20,000 (credit cards in the city of Memphis)= 0.03/100 × 20,000= 6

t = time interval = 1 month

Now, let’s put the values of λ and t into the formula:

P(x = 0; μ) = (e^-μ) (μ^x) / x

!P(x = 0; 6) = (e⁻⁶) (6^0) / 0

\!P(x = 0; 6) = (e⁻⁶)

Therefore, the probability that during the next month in the city of Memphis, every credit card is lost or stolen is approximately 0.0025.

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What is the primary purpose of incident investigation?
A. To determine the direct and root causes of the incident
B. To disturb physical evidence
C. To find fault
D.To satisfy the insurance company

Answers

A To determine the direct and root causes of the incident-to prevent it from happening again

Mary's purchased 1100 shares of the S&P 550 index (SPY) at $330 per share, inside her $1.2 million fee-only account this year. The planner's firm charges commissions of $0.20 per share and 1% on fee-based accounts. How much does her planner charge this year?
O $12000
O $220
O $3630
O $12220

Answers

The planner's firm charges a commission of $0.20 per share and 1% on fee-based accounts. Mary purchased 1100 shares of SPY at $330 per share, so the commission on the purchase is $220. The fee on the $1.2 million account is $12,000. The total amount charged by the planner is $12,220.

The commission is charged on the number of shares purchased, while the fee is charged on the balance of the account. The planner's firm may charge a higher commission on purchases of more than 1000 shares. The planner may also charge a higher fee on accounts with a balance of more than $1 million.

It is important to note that the planner's fees may change over time. Mary should check with her planner to confirm the current fees.

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6. He is not a skilled worker. He
doesn't ............... much.
win
gain
earn
pay
afford

Answers

Answer:

earn .

He is not a skilled worker. He doesn't earn much.

Explanation:

He doesn't earn much.....

Guya paid 20% more for a name-brand entertainment system than a generic one would have cost.assuming the generic system was $400, how much did he pay for his entertainment system

Answers

Answer:

$480

Explanation:

Find 1% of the cost.

100% = 400

1% = 400 ÷ 100 = 4

Since they are asking for entertainment system, which costs 20% more than the generic, find out 120%.

120% = 4 x 120 = 480

The CD production function q=k^.5*l^.75 yields the cost function

Answers

The cost function derived from the CD production function q=\(k^0.5*l^0.75\) is given by C(w,r,q)= min{wL,rK} where w and r are the wage rate and rental rate of capital, respectively.

Here, the cost function is derived from the production function by minimizing the cost of production subject to a given level of output q. In this case, the cost of production depends on the quantities of labor and capital used, which are represented by L and K, respectively. The wage rate w and the rental rate of capital r determine the cost of using these inputs.

The cost function is a measure of the minimum cost required to produce a given level of output q using a given combination of inputs. The cost function is useful for determining the least-cost combination of inputs required to produce a particular level of output, given the prices of the inputs.

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Sam is carrying a balance on his credit card of $500. The credit limit on the card is $1,500. What is his utilization rate?

Answers

The utilization rate of Sam that carrying a balance on his credit card of $500, that having a limit of $1,500, is 33%.

What is credit card?

Credit card is a plastic card that is used for withdrawing the excess amount from the bank account. This card is generally issued by the banks to their customers.

Sam's credit card use rate is 33 percent because he has a $500 load on his card with a $1,500 limit.

Therefore, the utilization rate is 33%.

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Franklin reviews financial data of a company to ensure accurate and complete information. Which job title does he most likely have?

Answers

Answer:

accountant

Explanation:

They go over money and financial data to help the company know how much money is brought in and out.

Refer back to the Rice football dilemma from question 1.7. The school board was faced with a tough decision to reduce Rice's football team's $4 million and growing deficit. The school had three choices: increase ticket earnings, obtain money from non-athletic sources, and/or move NCAA (National Collegiate Athletics Association) division. Each choice had its own outcome. When looking at increased ticket earnings, the school can increase the price of tickets (resulting in fewer people attending games). Or they can devise a way to get more people at games. However, increasing. Option two, obtaining money from non-athletic sources, can be done through alumni donations, licensing/merchandise, and rising tuition. Rising tuition and also make the school too expensive for some students. The last option could be to move football division. Conversely, this could cause a decrease in support from fans, supporters, and alumni. (2 pts) *note that this question is a summary of question 1.7. There are some minor changes and additions, so answer the following question based on the summary provided above and not the book A) What is the fundamental objective? B) Draw the decision tree

Answers

A) The fundamental objective in the Rice football dilemma is to address the team's growing deficit of $4 million. The school board needs to make a tough decision on how to reduce this deficit effectively.

B) The decision tree for addressing the deficit can be summarized as follows: The school board has three choices. The first option is to increase ticket earnings, which can be achieved by either increasing ticket prices or finding ways to attract more people to games. The second option is to obtain money from non-athletic sources, such as alumni donations, licensing/merchandise, or rising tuition fees. The third option is to move the football division within the NCAA. However, each choice has its own potential outcomes. Increasing ticket prices may result in fewer people attending games, while finding ways to attract more attendees could boost ticket earnings. Obtaining money from non-athletic sources may provide financial support, but rising tuition fees could make the school unaffordable for some students. Moving the football division could lead to a decrease in support from fans, supporters, and alumni. Ultimately, the school board needs to weigh these potential outcomes and choose the best course of action to address the deficit while considering the long-term implications for the football program and the school as a whole.

In summary, the fundamental objective in the Rice football dilemma is to reduce the team's growing deficit of $4 million. The school board has three choices: increasing ticket earnings, obtaining money from non-athletic sources, or moving the football division. Each choice has its own potential outcomes, such as fewer attendees with increased ticket prices, financial support with rising tuition fees, or decreased support from fans and alumni by moving divisions. The decision tree represents the options and potential consequences that the school board must consider when making their decision.

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What type of transactions should be recorded in the Payment, Fee, Withdrawal column
of your check register?

Answers

I don’t know Iam adult but I don’t know

with respect to estimate changes in pension assumptions, an investment return increase will have what probable effect?

Answers

An increase in the assumed investment return for pension assets is likely to have a favorable effect on pension plan estimates.

When estimating changes in pension assumptions, the assumed investment return refers to the expected rate of return on the pension plan's assets. A higher assumed investment return means that the pension plan anticipates earning a higher return on its investments over time.

The probable effect of an investment return increase is that it would reduce the projected pension liability. A higher assumed investment return implies that the pension plan expects its assets to grow at a faster rate, which can offset a portion of the future pension obligations. As a result, the projected funding shortfall or pension expense may be lower, and the financial health of the pension plan may appear stronger.

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Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each. if it sells 20,000 cards the first month, what is its total revenue?

Answers

Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each. if it sells 20,000 cards the first month,  its total revenue will be $60000.

It is calculated as:

Total revenue=  Price of product* quantity of the product

                        = $3*20000

                         =$60000

Total revenue is the total of all the receipts  which a seller can obtain from selling the goods or services to buyers. It can be stated  as P × Q which depicts that the price of the goods is multiplied by the quantity of the sold goods.

Total revenue is also known as the gross revenue.

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PLS help, 25 pts and brainliest will be given !
How can reflecting on morals and ethics; help you identify your areas of strengths and weaknesses?

Answers

Explanation:

Identifying your strengths and weaknesses can be extremely valuable. Not only will it allow you to approach tasks and challenges with a better understanding of how to succeed and what pitfalls to look out for, but it also allows you to effectively communicate what you can contribute, which is essential for things like job interviews.

Distinguishing your qualities and shortcomings can be very significant. Not exclusively will it permit you to move toward assignments and difficulties with a superior comprehension of how to succeed and what traps to pay special mind to, yet it likewise permits you to viably convey what you can contribute, which is fundamental for things like new employee screenings.

Question 9 of 10
If a new source of lumber is found, what is likely to happen to the price of
lumber, and why?
A. The price is likely to increase because demand will increase.
B. The price is likely to increase because costs of production will
increase
C. The price is likely to decrease because demand will decrease.
O D. The price is likely to decrease because supply has increased.
SUBMIT

Answers

Answer:

O D. The price is likely to decrease because supply has increased.

SUBMIT

Explanation:

A new source of lumber will result in an increase in the quantity available for sale. As per the laws of supply and demand, an increase in supply without a corresponding increase in demand leads to reduced prices.

The prevailing market price or equilibrium price is the price at which the current demand matches the current supply. There are no shortages or excesses. An increase in supply creates a surplus in the market. For suppliers to sell the excess lumber supplied, they have to reduce prices to create more demand.

Which strategy best helps a famous brand company reach consumers?


selling at trade shows
sending out mailings in small towns
advertising nationally
marketing selectively

Answers

Answer:

C.) advertising nationally

Explanation:

This is the correct answer. The person above may only have a 3-star rating, but they are correct.

The correct answer is C.) advertising nationally This is the correct answer.  when The person above may only have a 3-star rating, also but they are correct.When National advertising is any advertising that is placed by a company, organization, or individual that is operated on a national or regional (multi-state) basis.

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The evidence from banking crises in other countries indicates that:
A) deposit insurance is to blame in each country.
B) a government safety net for depositors need not increase moral hazard.
C) regulatory forbearance never leads to problems.
D) deregulation combined with poor regulatory supervision raises moral hazard incentives.

Answers

Answer: The correct answer is D) deregulation combined with poor regulatory supervision raises moral hazard incentives.

Explanation: Evidence from banking crises in various countries suggests that a combination of deregulation and inadequate regulatory supervision can create incentives for moral hazard. Moral hazard refers to the increased risk-taking behavior by banks or financial institutions when they believe they will be protected from the consequences of their actions.

During banking crises, weak regulations and supervision can contribute to excessive risk-taking and imprudent lending practices by financial institutions. Deregulation, which reduces restrictions and oversight on banks, combined with poor regulatory supervision, can amplify the moral hazard problem. Banks may engage in riskier activities or take on excessive leverage, expecting that any losses will be borne by the government or taxpayers.

Deposit insurance, which protects depositors from loss in the event of a bank failure, is not to blame for banking crises in every country (option A). While deposit insurance can play a role in moral hazard, it is not the sole factor responsible for banking crises.

The statement in option B, that a government safety net for depositors need not increase moral hazard, is not universally true. While a well-designed safety net can provide stability to the banking system, it needs to be accompanied by strong regulations and supervision to mitigate moral hazard.

Option C, stating that regulatory forbearance never leads to problems, is not accurate. Regulatory forbearance, which involves leniency in enforcing regulations or supervisory requirements, can contribute to the buildup of vulnerabilities in the banking system and delay necessary interventions, potentially exacerbating problems during a crisis.

Therefore, the most accurate statement is D) deregulation combined with poor regulatory supervision raises moral hazard incentives, based on the evidence from banking crises in other countries.

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explain advertisement

Answers

Answer: Advertisement is a marketing communication. It is used to promote businesses and their products. Used to promote more effectiveness in a businesses profit and their sales. May be seen in the form of commercials or billboard announcements in everyday life.

7. "Skill is necessary to develop team spirit”. Justify your answer.​

Answers

Answer:

ghjj

Explanation:

jjkkklnnnmmmn jjjjj jjjn

The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization’s resources is the definition of _____.

Answers

Answer:

Management

Explanation:

Management can be defined as the discipline that involves the use of a firm's resources (labor, capital) in an efficient and effective way, in order to attain the firm's objectives.

Those firm's objectives are also set by management, and the main task of management is to coordinate efforts accross the firm divisions (marketing, operations, HR, accounting, finance) to achieve those goals.

The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization’s resources is the definition of management.

What is management?

Management refers to the process of planning, organizing, coordinating, and controlling resources to achieve specific goals and objectives within an organization. It involves making decisions, allocating resources, and guiding and directing individuals or teams to accomplish tasks and meet targets. Effective management involves overseeing various functions such as setting objectives, making strategic plans, allocating resources, coordinating activities, monitoring progress, and making adjustments as needed.

Management encompasses multiple roles and responsibilities, including setting goals, making decisions, organizing and allocating resources, leading and motivating employees, communicating effectively, problem-solving, and ensuring the efficient use of resources to achieve organizational objectives.

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what is franco invoice?​

Answers

An invoice number is a unique number in chronological order without any breaks. There can be separate series for different invoices. The invoice must have the date on which service is provided to the client.

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"Find the area of the region that is inside the circle r=4cosand outside the circle r=2.Find the area of the region that is between the cardioidr=5(1+cos) and the circle r=15." Estimate the mean of the age of the people in group A 14895 decreased by 3% Convert the following polar equation to a cartesian equation. r = 2 O A. y2 = 4 OB. x = 2 O C. y = 2 OD. x2 + y2 = 4 Could someone correct my grammar?1. Cual es el cdigo de vestimenta?-El cdigo de vestimenta es informal. Los empleados se permiten usan ropa cmoda. Pero, cuando se arreglando los bienes de consumo, es importante vestirse apropiadamente para la trabajo. Las camisas y pantalones largos son recomendado. Todas los trabajadores son necesario vestir que usar gafas de proteccin y guantes cuando trabando con frutas. Las zapatillas deportivas de todo tipo es tambin necesario vestir. What is the general idea of this passage? A. The general idea of the passage is that while choosing a career, a person should identify a profession that would enable a rich and comfortable life. B. The general idea of the passage is that while choosing a career, a person should identify one's area of interest and recognize one's calling by self-analysis. C. The general idea of the passage is that while choosing a career, a person should identify one's area of interest while ensuring that it brings monetary rewards. D. The general idea of the passage is that while choosing a career, a person should recognize one's calling by seeking the opinions of others. 2 Rema has two jobs. In one year, she worked 276 hours at her first job. In the same year, she worked 3 times the number of hours at her second job. How many hours did Rema work that year at her second job? limits for fha insured and va guaranteed loans were raised by the What is true about research on the relationship of virtuous leadership to organizational and individual employee performance? she finds a hotel that charges 84 euros per night, she thinks this will be about 100. Is she right? How do I become = skinny???????????? Asking for a friend!!!!!!!!!!! anyone plz help?? T^T Which are lymphocytes?-T-cells and phagocytes -phagocytes and saliva -saliva and B-cells -B-cells and T-cells Assume the following data describe the condition of the banking system how large is the money supply Data are available in the database for detecting the dollar amounts attributable to: a.manipulation of physical inventory counts b.employees walking out the door with food c.servers and chefs not recording wasted food d.diners eating and leaving without paying Identify two factors from porter's five forces paper and explainhow they apply to REPUBLIC SERVICES COMPANY (RSG)and what threats (high, moderate, or low) they pose. expatiate on the cause of rage in the raider of the treasure trove Clara and even volunteer at an animal shelter a total of 956 hours letter word for 4 1/3 hours how many hours did even work Make the singular nouns plural, and the plural nouns singular-la chose -le bureau-le caf-les libraries -la facult-les acteurs-lami-luniversit-les tableaux-le problme-les bibliothques what is the solution set for 2n squared +7n-9=0