The common stock of Flavorful Teas has an expected return of 12.00 percent. The return on the market is 8 percent and the risk-free rate of return is 3.0 percent. What is the beta of this stock?

Answers

Answer 1

Answer:

1.8

Explanation:

The beta of the stock can be calculated by rearranging the expected return formula. The expected return formula is given below

DATA

Risk free rate of return = 3%

Return on the market = 8%

Expected return = 12%

Beta =?

Expected return = Risk free rate of return x Beta( Return on market - Risk free rate of return)

12% = 3% x Beta(8% - 3%)

12% - 3% = Beta (5%)

9% / 5% = Beta

Beta = 1.8


Related Questions

Alfred is grain farmer that usually stores his soybeans at a local elevator. What would he do just to use the options market to create synthetic storage after he sells his beans at harvest?

Answers

Answer: Buy a Call Option

Explanation:

A Call option gives the holder the right to buy an asset at a predetermined price and time in the future. If Alfred bought a call option on the soybeans, he could leave the soybeans with the writer of the call option until the time the option is exercised then he can claim it back.

That way Alfred would effectively have stored the soybeans with the writer because he was still going to get it back in future anyway.

A plant's fixed overhead costs total $500,000 for a year to produce 400,000 widgets, among other items. If machine‐hours are used as an allocation base, all processes use a total of 40,000 machine‐hours, and widgets use 16,000 of these hours, what is the fixed overhead applied to each widget? Group of answer choices

Answers

Answer:

$0.5

Explanation:

A plant's fixed total overhead cost is $500,000 for a year

400,000 widgets are required to be produced for this period

All processes require a 40,000 machine hours and the widgets use 16,000 hours out of the total hours

The first step is to calculate the fixed overhead application rate

= $500,000/40,000

= $12.5 machine-hour

The fixed overhead that is applied to the widgets can be calculated as follows

= $12.5 × 16,000

= $200,000

Therefore, the fixed overhead that is applied to each of the widgets produced can be calculated as follows

= 200,000/400,000

= $0.5

Hence the fixed overhead that is applicable to each widgets is $0.5

1. What is capital ?

Answers

Capital is a different way to call Money

If your income increases and your consumption of bagels increases, other things equal, bagels are considered:

Answers

Answer:

d. normal good.

Explanation:

The normal goods are the goods which show the direct relationship between the income and quantity demanded also its elasticity of demand is more than one that means it appears in positive which we called as elastic demand

Therefore in the given case it is a case of normal goods as the income increases also the consumption of bagels also increased

hence, the correct option is d,

There are three approaches to valuation, and all three should be used. Depending on the type of property being appraised however, one approach will have more weight and should afford greater authority. The comparison approach is given greater weight in the appraisal of:

Answers

Answer:

"Single family dwellings " is the right approach.

Explanation:

Single-family dwelling indicates a constructed structure, or component equivalent, that has been used predominantly for housing development, that is built for, as well as inhibited specifically by, 1 individual, and this also incorporates work around the house.It appears to mean the certain continued to improve capital assets which can be used but rather originally meant being used as a household and which provides yet another unit of an apartment.

So that the above is the correct solution.

The comparison approach is given greater weight in the valuation of a property in the appraisal of single family dwellings. Such houses are referred to as owned by a single family.

A single family dwelling gets more value appraisal as there is a more increase in the valuation due to increasing demand and factors contributing like inflation.

A single family dwelling or a one family dwelling is a popular concept in real estate housing development where the house or the entire building is owned by one single family.

Such houses are referred to as property having a high valuation in the property of as there is a great demand for such houses due to their premium locations and features along with inflation.

Single family dwellings houses are built in such a way that any house, buildings, gardens, constructions of such kind do not share their wall with such properties.

Hence, the correct statement is that the single family dwellings are appraised more in their valuation under following the comparison approach.

To know more about comparison approach, click the link below.

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"Which bond recommendation would be the LEAST safe for an individual who seeks income that is free from federal income tax?"

Answers

Answer:

A. AA-rated revenue bond that is escrowed to maturity

Explanation:

As first option is the bond that the issuer of bond called back prior to the matured. It occurs when there is a fall in the rate of interest

The second option is backup by a pledge that involves full trust and contains the secure option that enables an individual free from the federal income tax

The third option are issued by the authorities that are local and governed by the U.S government so it become secure that enables an individual free from the federal income tax

The fourth option is the mix of revenue bonds and the obligation bonds hat involves full trust and contains the secure option that enables an individual free from the federal income tax

You are on your daily jog when a car negligently pulls in front of you. Unable to stop, you run
into it and injure yourself should you be able to recover from the harm done to you?​

Answers

Answer:

medically speaking, Yes!

Explanation:

Since the scenario only involves the individual running into the car, not the car hitting the individual; meaning that he'll have less severe injuries.

To be able to recover from the harm done, the individual may need first aid treated.

As a software developer working for a large clothing store chain, you are responsible for creating software used to connect retail store computers to a central database at the head office. recently, some friends of yours suggested that you publish your software under the gpl. what are some direct benefits to publishing your software under the gpl? to publish software made for a company under the gpl, you need the company's permission because the company owns any software that it pays developers to create. when you approach people in your company regarding oss and explain how companies benefit from releasing software as open source, you are asked what benefits the company will receive from funding an open source project over time. your company also wants to know what the procedure is for releasing and maintaining oss. what benefits will you offer them? where could you send them to gain more information on procedures involved in the open source community?

Answers

Answer and Explanation:

software published under general public license(GPL) makes the software an open source software meaning that the public are free to change, study, share and run the program as they please.

Benefits of open source software/GPL include:

-General feedback and quick identification of bugs in software code

-Community contribution to new features, therefore costing the company less in releasing new features

- quick popularity of software as different people come to use and contribute to development

-open source softwares are even more important as they form stepping stones for even better software, reusability, code can be reused for other software development and there won't be any need to code that same functionality

If the company wishes to get more information on opens piece software's and communities or procedures regarding development of open source software, they could check out open source initiative,www.opensource.org, a non-profit organization dedicated to promoting and protecting open source communities and softwares

Which example is an economic property but not a law?
"No stealing."
"Buy low and sell high."
"All exchanges must benefit both parties."
"Consumers and producers must agree on prices."

Answers

Answer:

The correct option is;

Buy low and sell high

Explanation:

To "buy low and sell high" is a market strategy that involves the idea of buying stocks or goods or other financial instruments, when the market value is at the lowest, and sell when the prices are high or at their peak

That is a profit is made when traders buy stocks or goods at a price lower than they sell

The idea to buy low and sell high is aptly applied to stock market trading that have cycles of high and low prices. But it is also very much applicable to real estate and property, as these are more tangible items although they operate sometimes at a smaller scale.

Answer:

B) "Buy low and sell high."

Explanation:

i took the test and it was correct :))

Shell, an energy company, creates very long range forecasts about energy. The oil and gas businesses require large upfront investments against long-term paybacks. They want to understand the risks to those paybacks. This is called

Answers

Answer:

Budgeting

Explanation:

Budgeting is the process of balancing your expenses and income. It involves creating a spending plan that allocates income effectively to different activities of an entity.

Creating a budget help in meeting set objectives of a business by assigning funds to the most relevant activities per time.

In this scenario the oil and gas businesses require large upfront investments against long-term paybacks.

So they need to create very long range forecasts about energy in order to understand the risk from these paybacks.

This is called budgeting

Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs.
Carrying cost is $30 per unit per year, and the cost of a stockout is $80 per chair per year.
Given the following demand probabilities during the lead time, how much safety stock should be carried?
Demand during lead time Probability
0 0.2
100 0.2
200 0.2
300 0.2
400 0.2
The optimal quantity of safety stock which minimizes expected total cost is _ units (enter your response as a whole number).

Answers

Answer:

The optimal quantity of safety stock which minimizes expected total cost is _ units is 100 units.

Explanation:

Incremental Costs would be considered here to evaluate which safety stock level is the best for the company.

The working is as under:

Safety Stock  Carrying Cost      Stock-out Cost                    Total Cost

   0                        0                     (100*0.2 + 200*0.2) * 80         4,800

 100                100*30 = $3000   (100 * 0.2) * 80                        1,600

200               200*30 = $6000   (200 * 0.2) * 80                       3,200

The total cost has started growing as the safety starts growing above the 100 units level. This means that the safety stock must be 100 units as the cost at this level is the lowest to the company.

Inventory is termed as the accounting name of the stock of the goods and services in the economy. This is the produced level of the final goods of the firm.  

100 units are the optimal quantity of safety stock for reducing the anticipated total cost.

Here, incremental costs would be considered to determine whether the level of inventory level is optimum for the firm.

The calculation is as shown below:

Safety Stock  Carrying Cost      Stock-out Cost                    Total Cost

  0                        0                     [tex](100\times0.2 + 200\times0.2) \times 80[/tex]         4,800

100           [tex]100\times30 = \$3000[/tex]                  [tex](100 \times 0.2) \times80[/tex]           1,600

200               [tex]200\times30 = \$6000[/tex]          [tex](200 \times 0.2) \times 80[/tex]            3,200

The overall cost has risen up when the degree of safety rises above 100 units. This indicates that the safety stock must be 100 units because the company's cost becomes the least at this point.

To know more about the inventory and its calculation, refer to the link below:

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House of quality is a part of the quality function deployment process that utilizes a planning matrix to relate customer "wants" to "how" the firm is going to meet those "wants"

Answers

Answer:

True.

Explanation:

A quality function deployment can be defined as a measure of customer wants or requirements and developing them into processes (how) that each functional area of the manufacturing firm can understand and work with.

House of quality is a part of the quality function deployment process that utilizes a planning matrix to relate customer "wants" to "how" the firm is going to meet those "wants." House of quality is used in product development by providing inter-functional communications and planning in a manufacturing firm through the informations sourced from customers.

What are three ways to make money through investing in real estate?

Answers

Answer:

There are three primary ways investors could potentially make money from real estate: An increase in property value. Rental income collected by leasing out the property to tenants.

Answer: By a sudden positive change in the economy, by renting out residences or land to customers, or by being smart about when and how the properties are put up for sale or rent

Explanation:

When Sunshine Inc., a cosmetics manufacturer, introduced an additional line of perfumes, the response from its existing customers was good. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy.

Answers

Answer:

The given scenario is an example of "Product Development".

Explanation:

This seems to be a technique focused on the development of innovative products or maybe even the alteration of existing commodities so that they look expensive as well as sell such goods to current or previous customers.Usually, these tactics come in even whenever there seems to be no scope for additional opportunities in the established industry for perhaps a business.

A(n) _____ is a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation.

Answers

Answer:

new-venture team

Explanation:

A fishery with populations well below historic levels that has reduced reproductive capacity is called ___________.

Answers

Answer: depleted

Explanation:

A fishery with populations well below historic levels that has reduced reproductive capacity is called depleted.

It should be noted that depletion in fishery occurs due to overfishing by individuals or in certain situations when the waster from companies are poured into rivers or seas which affects the survival of the fishes. This will lead to their reduction in the long run.

ABC Company had 500 units of XYZ in its inventory at a cost of $4 each. It purchased, for $2,800, 300 more units of XYZ. ABC then sold 400 units at a selling price of $10 each, resulting in a gross profit of $1,600. The cost flow assumption used by ABC:__________

Answers

Answer:

ABC company uses the average cost method

Explanation:

beginning inventory 500 units at $4 = $2,000

purchased 300 units at $9.33 = $2,800

sold 400 units at $10 = $4,000 ⇒ gross profit = $1,600

under LIFO, cost of goods sold = $2,800 + $400 = $3,200, gross profit = $800

under FIFO, cost of goods sold = $1,600, gross profit = $2,400

under average cost, cost of goods sold = ($4,800 / 800) x 400 = $2,400, gross profit = $1,600

Project risk events tend to be unlikely __________ a project, but that's also when they tend to be the __________.

Answers

Answer:

Late in, most costly

Explanation:

Project risk events tend to be unlikely late in a project, but that's also when they tend to be the most costly.

Which one of the following is something to look for in identifying a company's culture? A. the atmosphere, spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices B. the track record in meeting or beating its financial and strategic performance targets C. the intensity and makeup of the company's value chain D. the strategic intent and competitive strategy inherent within the company's efforts for successful strategy execution E. the resource strengths, core competencies, and competitive capabilities that permeate the organization

Answers

Answer:

A. the atmosphere, spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices

Explanation:

Culture is the normally acceptable social behaviour that is expected from someone in a group. It includes beliefs, knowledge, art, law, capabilities, and habits of the group.

The process by which the culture of a group is imbibed is through learning and socialisation.

The norm of a group is the acceptable way one is expected to behave in the group. Like the way one dresses and language.

A company's culture is expressed in the spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices.

Based on the sticky-price model, the short-run aggregate supply curve will be steeper the greater the:

Answers

Answer:

The correct answer will be the "proportion of firms with flexible prices".

Explanation:

The sticky market or price mechanism induces on the upward steep slopes quantity supplied for the immediate term cumulative. That was because firms reacting to changes and differences in economic conditions are restrictive in fluctuating prices. We addressed the explanations or causes behind the strength and stiffness throughout this section.

So that the above is the correct solution.

________ is a a selection requirement that is necessary for the performance of job-related duties and for which there is no substitute.

a. Certified qualifications
b. Bona fide occupational qualifications
c. Pedigree
d. First honors

Answers

Answer: B. Bona fide occupational qualifications

Explanation:

Bona fide occupational qualifications is a selection requirement that is necessary for the performance of job-related duties and for which there is no substitute.

When employers awant to make decision about whether to hire or retain s particular worker, the bona fide occupational qualifications can be used.

Which type of bank account allows checks to be written for a larger amount than is currently in the account?

Answers

Answer:

which type of Bank account allows checks to be written for a larger amount than is currently in the amount

Explanation:

first community Bank

Currency devaluation ___________ the cost of foreign goods and _______ the cost of domestic goods to foreign firms.

Answers

Answer:

increases

reduces

Explanation:

Devaluation is when the value of a currency is deliberately adjusted downward relative to the value of another currency.

For example, a dollar can be exchanged for 40 pesos. the Mexican government decides to devalue their currency. After devaluation, a dollar is now being exchanged for  60 pesos. This is an example of devaluation.

If a burger costs $5, before devaluation, the burger would cost 200 pesos to a Mexican before devaluation. After, it would cost 300 pesos. We can see that foreign goods becomes more expensive after devaluation.

If a taco costs 40 pesos, an American would pay $1 for a taco. After devaluation, a taco would cost $0.7. We can see the domestic goods become cheaper to foreigners

"A customer holds 1,000 shares of ABC stock valued at 80 in a margin account. The debit balance in the account is $35,000. ABC declares and pays a 20% stock dividend. The tax consequence of the distribution to the investor will be:"

Answers

Answer: Reduction of cost basis per share

Explanation:

It should be noted that Under IRS rules, when stock dividends are being received, they are not taxable at that particular time as shareholders haven't gotten any return from the stock yet.

The Stock dividend will then lead to reduction in cost basis per share. Therefore, based on the scenario in the question, the tax consequence of the distribution to the investor will be reduction of cost basis per share.

Well balanced people are more productive employees. Please select the best answer from the choices provided T F

Answers

TRUE

eeeeeeeeeeeeeeeeeeeeeee

The statement "Well Balanced people are more productive employees " is true.

What is Productivity?

By comparing the quantity of goods and services produced (output) with the quantity of inputs required to generate those goods and services, productivity is a measure of economic performance.

The word "productive" can be used more generally to refer to anything that yields a favorable outcome. the primary objective of performance reviews is to give management and staff members a formal forum for discussing how the company perceives each employee's performance. We all intuitively understand that effective communication needs two-way contact between individuals.

Therefore, the statement is true that well balanced people are more productive employees.

Learn more about Productivity, here;

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A buyer has deposited 10% of the sales price of a condominium with the broker as earnest money, and the bank has agreed to lend $51,000, which is 80% of the sales price. How much additional funding must the buyer provide to complete this transaction?

Answers

Answer: $6375

Explanation:

Since the bank has agreed to lend $51,000, which is 80% of the sales price, then the sales price will be:

= $51,000/80%

= $51,000/0.8

= $63750

The additional funding must the buyer provide to complete this transaction will be:

= $63750 - $51000 - (10% × $63750)

= $63750 - $51000 - $6375

= $6375

_______is a series of pre-booked, one-on-one interviews from a fixed location with a series of journalists or talk show hosts. Group of answer choices

Answers

Answer:

Satellite Media Tour

Explanation:

A satellite media tour is the media tour that establishes the public relations with respect to the stories with the audience via television, radio, etc. It can be accessed from anywhere at any time.

Here, live interviews are also conducted that seems the cost effective and direct way to communicate with the audience

Therefore the given situation represents the Satellite Media Tour scenario

When interviewing job applicants, Marci shares the many perks of the organization but also mentions the challenges and potential pitfalls associated with the position. Marci's assessment is an example of a(n) EEO compliance. 360-degree appraisal. background check. realistic job preview. position analysis.

Answers

Answer: realistic job preview

Explanation:

Realistic job preview is used by companies and organizations in order to tell prospective employees the good and bad features of the job

The purpose of this is to make sure that the new worker fully knows what the job requires. It also help build mutual trust with the workers.

Sweet Stuff Sugar Source ships product all over the world. Since the product it ships has a low value-to-weight ratio, transportation costs are

Answers

Answer:

a large percentage of the total cost

Explanation:

When a product has a high value to weight ratio it means it is expensive and the weight is light. For products with low value to cash ratio they are cheap but have large weight.

Low value to weight ratio goods are more expensive to transport and they do not make up the high transportation cost because they are also cheap.

In this scenario Sweet Stuff Sugar Source ships low value to weight goods all over the world. So their transportation cost will be high and it will make up a large percentage of total cost.

Chevron identified their desired outputs and then worked backward by examining the supporting processes. They used a holistic approach that led the company to examine the interdependencies among processes used in different business units. This is a _________ approach.

Answers

Answer:

BPR

Explanation:

In this scenario, Chevron identified their desired outputs and then worked backward by examining the supporting processes. They used a holistic approach that led the company to examine the interdependencies among processes used in different business units. This is a Business Process Reengineering (BPR) approach. It is a radical approach and process to redefining a business entity so as to enhance productivity.

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