Problem 11-15 Using CAPM A stock has an expected return of 10.5 percent, a beta of 1.55, and the expected return on the market is 8.5 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.G., 32.16.)

Answers

Answer 1

Answer:

the risk free rate of return is 4.86%

Step-by-step explanation:

The computation of the risk free rate is shown below;

As we know that

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

10.5% = Risk free rate of return + 1.55 × (8.5% - Risk free rate of return)

10.5% = Risk free rate of return + 13.175% - 1.55 Risk free rate of return

10.5% - 13.175% = -0.55 risk free rate of return

-2.675% = -0.55 risk free rate of return

So, the risk free rate of return is

= 2.675% ÷ 0.55

= 4.86%

Hence, the risk free rate of return is 4.86%


Related Questions

Find the fifth term in the geometric
sequence, given the first term and
the common ratio.
a1 = 2 and r = 3
a5 = [ ?]

Answers

We can solve this in 2 ways
Since a1 = 4
a2 = 4 * (3) = 12 i.e( a1* common ratio)
a3 = 12 * (3) = 36 i.e( a2 * common ratio)
a4 = 36 * (3) = 108 i.e( a3* common ratio)
a5 = 108 * (3) = 324 i.e(a4*common ratio)

and so on

The fifth term is 162 in the geometric sequence.

What is geometric sequence?

The geometric sequence defined as a series represents the sum of the terms in a finite or infinite geometric sequence. The successive terms in this series share a common ratio.

The nth term of a geometric progression is expressed as

Tₙ = arⁿ⁻¹

Where a is the first term, r is the common ratio

What is arithmetic sequence?

A arithmetic sequence is defined as an arrangement of numbers which is particular order.

The formula to find the general term of an arithmetic sequence is,

aₙ = a₁ + (n-1)d

Given data :

First term of sequence geometric (a₁) = 2

The common ratio of geometric (r) = 3

To determine the fifth term of geometric sequence

Let the fifth term of sequence = a₅    

The nth term of a geometric sequence is expressed as :

Tₙ = a₁rⁿ⁻¹

Substitute the values of n = 5, a₁ =2 and r = 3 in the formula,

T₅  = (2)(3)⁵⁻¹  

T₅  = (2)(3)⁴

T₅  = (2)(81)

T₅  = 162

Hence, the fifth term is 162 in the geometric sequence

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A video club costs $25 to join. Each video that is rented costs $2.50. Let v represent the
number of videos. Identify the independent and dependent variables. Then, write a rule
in function notation for the situation.

Answers

Answer:

Independent: videos rented; Dependent: total cost; f(v) = 2.5v + 25

Step-by-step explanation:

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Susan can swim 105 meters in 70 seconds. At this rate, how far can she swim in 30 seconds?

Answers

Answer:

45 meters per 30 seconds

Step-by-step explanation:

To figure this question out you first gave to find the unit rate of meters per second by dividing 105 by 70.

105 divided by 70 = 1.5

So Susan can swim 1.5 meters per second.

Then we multiply that amount by 30 to find the number of meters she can swim in 30 seconds.

1.5 x 30 = 45 meters

So, in conclusion, Susan can swim 45 meters per 30 seconds

Bobby hit the wrong lever and as a result the factory produced way too many cheese puffs. If the factory managers decide to to give away 1/3 of 1/9 of a ton away as samples, what fraction of a ton did they give away? Make sure you answer is fully reduced.

Answers

Given:

The factory managers decide to to give away [tex]\dfrac{1}{3}[/tex] of [tex]\dfrac{1}{9}[/tex]  of a ton away as samples.

To find:

what fraction of a ton did they give away?

Solution:

According to the question, the factory managers decide to to give away [tex]\dfrac{1}{3}[/tex] of [tex]\dfrac{1}{9}[/tex] of a ton away as samples. So,

[tex]\text{Samples}=\dfrac{1}{3}\left(\dfrac{1}{9}(1\text{ ton})\right)[/tex]

[tex]\text{Samples}=\dfrac{1}{3}\times \dfrac{1}{9}\times (1\text{ ton})[/tex]

[tex]\text{Samples}=\dfrac{1}{27}\times (1\text{ ton})[/tex]

[tex]\text{Samples}=\dfrac{1}{27}(1\text{ ton})[/tex]

So, samples is [tex]\dfrac{1}{27}[/tex] of a ton.

Therefore, they give away [tex]\dfrac{1}{27}[/tex] of a ton as samples.

Students rent buses and vans for a trip to Disneyland. There were 12 buses and 8 vans and 360 students. A) write an equation to show the relationship described above. B) if there are 12 students on every van, how many kids are on each bus?

Answers

22 kids will be on each bus

based on the information in the table wich of these key features is incorrect

Answers

3=0 and 6=0. You can only have one x for one y

The average rainfall in inches in Miami from January to May is 1.61, 2.24, 2.99, 3.15, 5.35, and 9.68 while it is 2.24, 2.8, 3.03, 2.05, 2.09, and 6.69 during the same period in Tampa.
Which city gets more rain and how much more?

A: Miami gets 0.78 more inches of rain.
B:Tampa gets 5.13 more inches of rain.
C: Miami gets 6.12 more inches of rain.
D: Miami gets 5.35 more inches of rain

Answers

The answer is 100% A

Miami gets 6.12 more inches of rain.

What is mean by Addition?

The process of combining two or more numbers is called the Addition. The 4 main properties of addition are commutative, associative, distributive, and additive identity.

We have to given that;

The average rainfall in inches in Miami from January to May is 1.61, 2.24, 2.99, 3.15, 5.35, and 9.68

While it is 2.24, 2.8, 3.03, 2.05, 2.09, and 6.69 during the same period in Tampa.

Hence, For Miami;

= 1.61 + 2.24 + 2.99 + 3.15 + 5.35 +9.68

= 25.02

For Tampa;

= 2.24 + 2.8 + 3.03 + 2.05 + 2.09 + 6.69

= 18.90

Thus, Find difference as;

= 25.02 - 18.90

= 6.12

Therefore, Miami gets 6.12 more inches of rain.

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help me i need the answer

Answers

9514 1404 393

Answer:

arc AB = 102°arc ADB = 258°

Step-by-step explanation:

The measure of an arc is the measure of the corresponding central angle.

__

Short arc AB is shown as subtending a central angle of 102°, so the measure of arc AB is 102°.

__

The sum of arc measures in a circle is 360°, so the measure of arc ADB is 258°, the value that adds with 102° to make 360°.

What is the completely factored form of this polynomial? 4x4+12x2+9

Answers

When it says 4x4 and 12x2 does that mean it’s squared or multiplied by those?

The prices of different types of nuts are shown in the table.

Type of Nut Price per Pound
Almonds $9.15
Cashews $10.75
Peanuts $3.95

Mila buys 1.4 pounds of almonds, 0.8 pound of cashews, and 2.6 pounds of peanuts.
How much does Mila spend in all?

Answers

Answer:

$31.68

Step-by-step explanation:

Multiply each by the correct number

almond= 1.4*9.15= 12.81

cashews= 10.75* 0.8= 8.6

Peanuts= 3.95 * 2.6= 10.27

Add them all up

12.81+8.6+10.27

you’ll get 31.68

I’m not sure but I think it’s 30.6$

Which of the following functions best describes this graph?
A. y = x^2 - 8x +18
B. y = (x+4)(x+5)
C. y = x^2 -9x +20
D. y = (x-3)(x+4)​

Answers

Answer:

C

Step-by-step explanation:

Looking at the graph, we can see the roots at two points

these are points x = 4 and x = 5

This can be written in their linear forms as;

x-4 and x-5

Finding the products of both, we have

x(x-5) -4(x-5)

= x^2 -5x -4x + 20

= x^2 - 9x + 20

What type of triangle has no congruent sides and one angle that has a measure greater than 90° but less than 180°?

A.) acute scalene triangle
B.) right isosceles triangle
C.) equiangular equilateral triangle
D.) obtuse scalene triangle

Answers

Answer:

D.) obtuse scalene triangle

Step-by-step explanation:

acute triangle: 3 acute angles

right triangle: 1 right angle, 2 acute angles

obtuse triangle: 1 obtuse angle, 2 acute angles

scalene triangle: no congruent sides

isosceles triangle: 2 congruent sides

equilateral triangle: 3 congruent sides

The question is:

"What type of triangle has no congruent sides and one angle that has a measure greater than 90° but less than 180°?"

That means scalene and obtuse.

Answer: D.) obtuse scalene triangle

The triangle is an obtuse scalene triangle, the correct option is D.

What is a Triangle?

A triangle is a polygon with three sides, angles and vertices.

The triangle is classified into various types on the basis of the angle and on the basis of the equality of the length of the sides,

When the measure of all the angles of a triangle is less than 90 degree, it is an acute angle triangle.

When the measure of one of the angle of a triangle is equal to 90 degree, it is a right angled triangle.

When the measure of one of the angle of a triangle is greater than 90 degree, it is called an obtuse angle triangle.

When the measure of all side is different, it is a scalene triangle.

When the two side of a triangle is equal, it is an isosceles triangle.

When all the sides of a triangle is equal, it is an equilateral triangle.

The condition given in the question is triangle has no congruent sides and one angle that has a measure greater than 90° but less than 180°, it is an obtuse scalene triangle.

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Which fraction is represented by point A on the number line?
0
A
O-1
win W
1
3

Answers

Answer:

B

Step-by-step explanation:

it is

It’s B.
Because as u can see the line stops at -1. And A looks 1/3 away from from it so therefore it’s -1/3

In costal regions, some animals live above sea level and other animals live in the ocean. A sea star can be found at an ocean depth of two feet. How can you represent an ocean depth of two feet? 1.What do you know 2.What do you need to find 3.What is the answer

Answers

Answer:

- 2 feets

Step-by-step explanation:

Given that sea star can be found at an ocean depth of 2 feets ;

An ocean depth of 2 feets can be represented as :

Sea level - depth = 0 - 2 = - 2 feets

Hence, it can be concluded that sea star lives in the ocean

Please explain your answer and show your work

Answers

9514 1404 393

Answer:

  A. 6b³

  B. 6b +6

  C. p = 0.0375(6b³ +b +1)

  D. $115.54

Step-by-step explanation:

Given:

  3 candles with dimensions b×b×b, b×b×2b, and b×b×3b

  with wicks of lengths b+2, 2b+2, 3b+2

  wick costs $0.005/cm; wax costs $0.03/cm³

  selling price is material cost + 25%

Find:

  A. an expression for total volume

  B. an expression for total wick length

  C. an expression for the purchase price of a set

  D. purchase price for a set with base area 64 cm²

Solution:

A. The sum of the volumes of the three candles is ...

  v = b³ +2b³ +3b³

  v = 6b³

__

B. The sum of the wick lengths is ...

  L = (b +2) +(2b +2) +(3b +2)

  L = 6b +6

__

C. The selling price is 25% more than the cost of materials so is ...

  p = (1.25)(0.03×6b³ +0.005×(6b +6)) = 0.225b³ +.0375b +.0375

  p = 0.0375(6b³ +b +1)

__

D. The side of the base is the square root of the base area, so is ...

  b = √(64 cm²) = 8 cm

Then the price of a set of candles is ...

  p = 0.0375(6·8³ +8 +1) = 0.0375·3081 = 115.54

Purchase price for a candle set with a base area of 64 cm² is $115.54.

Using mental math, the approximate tip to leave for a bill of $81.79, if you tip 15% would be _____.. a. $8.20 b. $10.30 c. $12.30 d. $16.40 Please select the best answer from the choices provided A B C D

Answers

Step-by-step explanation:

The approximate tip is - 12.30$

Because bill is 81.79$

and tip - 15%

therefore bill amount divided by 15/100

==> 81.79* 15% is 12.30$

Are the triangles congruent? and why?

Answers

Answer: ASA: If two angles and the included side of one triangle are congruent to the corresponding parts of another triangle, then the triangles are congruent. SAS: If any two angles and the included side are the same in both triangles, then the triangles are congruent.

please help ill give brainliest

Answers

Answer: Nadia’s equation should be V = 1/2(12.5)(6.7)(20)

Leo’s equation: V = 1/2(21)(7)(29)

Darcie: V = 1/2(13)(4)(19)

Explanation:

The formula for the volume of a triangular prism = 1/2(base)(height)(length)

HELPPPPPPPPPPPPPPPPPPP!!!

Answers

Answer:

15.13cm

Step-by-step explanation:

From that above question:

We are told that:

Lateral surface area of a right circular cone : πr√r² + h²

We are give the following parameters:

Lateral surface area = 236.64cm²

Radius = 4.75cm

We are to find the height

Making h the subject of the formula

h = √[(A/r)² - πr²]/π

h = √[(236.64/4.75)²- π ×4.75²]/π

h = 15.12975 cm

Approximately to the nearest hundredth = 15.13cm

The graph of a linear relationship passes
through (0, 2), (1,5), and (3, 11) but not
through (2, 7). Which of the following is
the equation for this linear relationship?
A y= 2x + 3 Cy=5x
B y = 3x + 2
Dy= 4x - 1

Answers

Answer:

The equation of the linear relationship is y = 3x + 2B

Step-by-step explanation:

To solve the question substitute the x in the equation by the x-coordinate of each point to find y, if y equals the y-coordinate of the point, then the point is on the graph of the equation

A.

∵ y = 2x + 3

→ Use the first point (0, 2)

∵ x = 0

→ Substitute x by 0 in the equation

∴ y = 2(0) + 3

∴ y = 0 + 3 = 3

∵ The y-coordinate is 2

The point (0, 2) does not lie on the graph of the relationship

∴ The equation y = 2x + 3 doesn't represent the equation of the relationship

B.

y = 3x + 2

→ Use the first point (0, 2)

∵ x = 0

→ Substitute x by 0 in the equation

∴ y = 3(0) + 2

∴ y = 0 + 2 = 2

∵ The y-coordinate is 2

The point (0, 2) lies on the graph of the relationship

→ Use the second point (1, 5)

∵ x = 1

→ Substitute x by 1 in the equation

∴ y = 3(1) + 2

∴ y = 3 + 2 = 5

∵ The y-coordinate is 5

The point (1, 5) lies on the graph of the relationship

→ Use the third point (3, 11)

∵ x = 3

→ Substitute x by 3 in the equation

∴ y = 3(3) + 2

∴ y = 9 + 2 = 11

∵ The y-coordinate is 11

The point (3, 11) lies on the graph of the relationship

→ Use the fourth point (2, 7)

∵ x = 2

→ Substitute x by 2 in the equation

∴ y = 3(2) + 2

∴ y = 6 + 2 = 8

∵ The y-coordinate is 7

The point (2, 7) doesn't lie on the graph of the relationship

The equation of the linear relationship is y = 3x + 2

Tickets for 2 adults and 4 children at a theme park cost £152.

An adult ticket costs twice as much as a child ticket.

Write and solve an equation to work out the price of an adult ticket​

Answers

Step-by-step explanation:

Let x be the price of an adult ticket.

Then 0.5x is the price of a child ticket.

We have 2x + 4(0.5x) = £152, therefore 4x = £152 and x = £38.

Hence the price of an adult ticket is £38.

Answer:

Step-by-step explanation:

2a+4c=152

2c=a

4c+2a=152

2c-a=0

Use simultaneous equation

Substitute 2c=a

                  c=a divided by 2 in the first equation and find value of a and c

Find the equation of the line.
Use exact numbers.
y =
x+
Can I please get an explanation :)

Answers

Answer:

the equation is in form

y=mx+b where

m=slope

and

b=y-int (the y value for the vertex)

first we look to see what the y value is for the point where x=0 and we can see that it is 5 so b=5

then we look at the slope, slope it the amont of units up then to the side are needed to reach the next point, in this case the line goes up 1 then to the right 1 so the slope is 1/1 (1) so the full equation is

y=x+5

Step-by-step explanation:

Rudgolf goes to a store looking to buy comic books and CDs. Comic books cost 15 each and cds cost 10

Answers

Answer:

what to find the sum of Rs or

Answer:

If Rodgolf buys 3 comic books and 4 CDS, he payed a total of 85 dollars

Step-by-step explanation:

(wait but where is the question) Also 15 dollars or cents?

3*15= 45

4* 10= 40

45+40= 85

A real horse is 1.8 m high. A statue of the horse is 3 m high. What is the ratio of the height of the horse to the height of the statue

Answers

1:1.67. You divide both sides by 1.8 to reduce the smaller measurement to 1.

1.8/1.8 : 3/1.8 = 1:1.67 and there you go.

what is the circumference

Answers

Answer:  69.43 cm

Step-by-step explanation:

Given: Arc length (JK) = 40.5 cm

Central angle ∠ JLK = 210°

Arc length = [tex]\dfrac{x}{360}\times\text{Circumference}[/tex]

[tex]\Rightarrow\ 40.5=\dfrac{210}{360}\times\text{Circumference}\\\\\Rightarrow \text{Circumference} =40.5\times\dfrac{360}{210}\\\\\approx69.43\ cm[/tex]

Hence, Circumference = 69.43 cm

write an equation in slope-intercept form if the slope is 1.5 and y-intercept is (0,3)

Answers

Step-by-step explanation:

The equation of the line is y = 1.5x + 3.

Two binomials were multiplied together and the result is represented by the 1 point
algebra tiles shown. What are the two original binomials?

Answers

Answer:

What are the answers?

Step-by-step explanation:

I need help with this equation. I'm not that smart so I can't figure it out-

Answers

Answer:

x = 0

Step-by-step explanation:

In order to solve for x, first combine both fractions on the left

To add 4x-2/8 + 3+x/4 first find the least common denominator of 8 and 4

It's 8 so multiply the numerator and denominator of 3+x/4 by 8, you would get:

8x+24/32

Multiply 4x-2/8 by 4, you will get:

16x-8/32

Now you can add 16x-8/32 + 8x+24/32, you would get:

24x+16/32

Now you can start to solve for x

Your new equation is 24x+16/32 = 1/2

To solve for x, first multiply diagonally, then solve like a regular equation.

Multiply 24x+16 by 2 to get 48x+32

Then multiply 32 by 1 to get 32

Your new equation is 48x+32=32

Now subtract 32 by 32 to get 48x=0

Now divide 48 by 0 to get x=0

) Emma already owns 8 hair bands, and additional hair bands are priced at 3 for a dollar.
How much money does Emma need to spend on new hair bands in order to own a total of
47 hair bands?

Answers

41•3= $123 hope it helped!

Answer:$15.66

Step-by-step explanation:

answer with work please

Answers

Answer: 1. 4

2. 12

3. 6

4. 8

Step-by-step explanation:

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