To estimate a stock's beta from historical data, we should regress the (excess) return of the stock on the (excess) return of _____.

Answers

Answer 1

Answer: c. the market portfolio

Explanation:

A stock's beta measures how the stock moves in relation to the general movement of the market. It is therefore possible to estimate it based on the returns of both the market and the historical return of the stock.

To do so, one can run a regression analysis of the excess return of the stock on the excess return of the market portfolio. This will allow for knowing the amount of risk that is from the market and the one from the stock itself thereby allowing for the calculation of the stock's beta.


Related Questions

Mary was shopping in a clothing store. She had $100 to spend. She found three items she liked: $99 for a pair of shoes, $98 for a jacket, and $96 for a dress. After over an hour of shopping, she decided to buy the jacket for $98. What was her opportunity cost?

Answers

Answer:

    She have two opportunity cost: 1. Shoes

                                                          2. Dress

   With the return back money of $2

            Opportunity cost is the return of a foregone option less than the return on your chosen option.

Which of the following statements is correct?A. Wide variations in capital structures exist both between industries and among individual firms within given industries. These differences are caused by differing business risks and also managerial attitudes. B. Drug companies (prescription, not illegal!) generally have high debt-to-equity ratios because their earnings are very stable and, thus, they can cover the high interest costs associated with high debt levels. C. Generally, debt-to-total-assets ratios do not vary much among different industries, although they do vary among firms within a given industry. D. Since most stocks sell at or very close to their book values, book value capital structures are almost always adequate for use in estimating firms' costs of capital.E. Electric utilities generally have very high common equity ratios because their revenues are more volatile than those of firms in most other industries.

Answers

Answer:

A. Wide variations in capital structures exist both between industries and among individual firms within given industries. These differences are caused by differing business risks and also managerial attitudes.

Explanation:

Put simply, all the other options aren't factual statements which lack reliability. However, it is generally accepted that not all companies would have the same capital structures (eg either equity capital or debt capital).

So, it is accurate to say that, wide variations in capital structures exist both between industries and among individual firms within given industries.

Roberto and Maria Martinez have a new loan in the amount of $80,000. The interest rate is 10%. The monthly payments are $710, principal and interest. What is their loan balance after the they make two month’s worth of loan payments?

Answers

Answer:

$79,913

Explanation:

The computation of the loan balance after two months loan payments is shown below:

$80,000 × 10% = $8,000 ÷ 12 =$666.67

$710 - $666.67 = $43.33

$80,000 - $43.33 = $79,956

$79,956 × 10% = $7,995 ÷ 12 = $666.30

$710 - $666.30 = $43.70

$79,956 - $43.70 = $79,912.8 i.e. $79,913

Hence, the loan balance after two months is $79,913

A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent

Answers

Answer:

cross-coupon

Explanation:

The type of sales promotion being represented is known as a cross-coupon. This is a redeemable coupon/savings for a specific product and is given to the customer on the purchase of a different product that was made by the same company. This is usually through a tie-in with another manufacturer, in order for them to increase their sales and ultimately their profits by enticing customers to buy more products from the company.

True or false: When a capital investment decision is being made between two or more alternatives, the project with the shortest payback period is always the most desirable investment.

Answers

Answer:

False

Explanation:

The payback period refers to the specific period of time that it is required to recover the amount invested and it is an important factor to take into account but the project with the shortest payback period is not necessarily the most desirable investment because other factors are also considered, for example, the expected profit and the conditions in the environment that may affect the assumptions made. Because of that, the answer is that the statement is false.

Esther Lugo has gone for an interview at an advertising firm in Manhattan and has been asked to complete a self-report survey to help interviewers understand if she is the right candidate for the job. From the interview, they have found that she is extroverted, empathic, scrupulous, and cooperative in nature, empathic, scrupulous, and cooperative in nature, which are key characteristics needed for the job. These characteristics about Lugo indicate her ________.
a) talent.
b) skill.
c) knowledge.
d) genealogy.
e) personality.

Answers

Answer:

Personality.

Explanation:

From the interview bwe found bout that Lucy is an introvert, she is empathic, she is scrupulous, cooperative in nature and several other characteristics. These characteristics are a reflection of what her personality is. personality can be defined as the many charactereristics that a person has which defines them. It is also the different traits that a person has.

Among the most effective ways to increase sales of an online service is to offer some form of free trial for users to experiment with before they purchase the full service. The benefit of such a practice is to encourage sales in individuals who would not buy the product without having tried it first.
Which of the following is best supported by the information given above?
A. The number of people who see the free trial as an acceptable replacement for buying the online service is not greater than the number of people who buy the online service because of their experience within the free trial.
B. Because the cost of offering a free trial can be high, companies are often resistant to offering free trials, especially free trials that offer all features included within the paid version of the online service.
C. In calculating the total number of an online service sold, free trials are generally included as zero-dollar sales rather than as a separate category.
D. The number of sales for a given online service is directly proportional to the number of visitors to the online service's website, a number that tends to increase if a free trial is offered.
E. Online services that are easily adapted to free trial versions sell better than do online services that are not readily distributed as free trials.

Answers

Answer:

Option D

Explanation:

When providing an online service, a company firstly targets to reach the maximum audience. With the increase in reach of audience the chances and feasibility of sales also increases.

But, still there are many customers who desire to have a free trial of service, in order to ensure themselves about the quality and  detailed description of service.

In case company agrees to provide free trial, those customers are also satisfied and tend to avail the online service.

Thus, although the sales is directly proportional to the number of visitors, but it would definitely increase by providing the free trial of online service, as ensures more satisfaction in customers.

Final Answer

Option D

In the short run, with predetermined prices, when output is greater than planned aggregate expenditures:

Answers

Answer:

The decrease in production, is the right answer.

Explanation:

The decrease in production because if the output is more than planned aggregate expenditure then the equilibrium point will be at a lower point. Thus, in order to reach the equilibrium level, the production has to decrease. Moreover, if the output is lower than the planned aggregate expenditure then the production should be increased to reach the equilibrium point.

"An oil and gas sharing arrangement where the general partner agrees to defer taking a percentage of revenues until all costs are recovered is a(n):"

Answers

Answer:

The correct approach will be "Reversionary working interest".

Explanation:

Reversionary value or interest seems to be an individual's value in something like a community when a prior estate continues to function. It represents any curiosity that is deferred to something like the gratification of. Under reversive consideration, the obligation of a mortgagee to provide and inhabit land becomes susceptible to something like constraints imposed by the proprietor.

it is necessary for aquasona inc a company that packages drinking water to regualry change in operational planning. the managers of the company typcially do the planning are _____ managers.

Answers

Answer: first line managers

Explanation:

First-line managers are the managers who are usually closest to the employees of an organization as they are at the management's entry level. It should be noted that they are responsible for ensuring that the objectives of an organization are achieved.

With the above explanation, the answer to the question is first line managers.

During a resuscitation, the team leader assigns team roles and tasks to each member. You recognize that a task has been overlooked. Which is the most appropriate action

Answers

Answer:

fill that overlooked role

Explanation:

In a scenario such as this one, the most appropriate action would be to fill that overlooked role. During a resuscitation, every second counts and all the members of a team are trained to handle these situations, therefore if a role has been overlooked by the team leader the other members need to fill that role as quickly as possible as long as they are not currently occupied with another role. Doing so will save time and potentially a life.

Asking all job candidates questions from the same interview schedule in the same way is an example of ________.

Answers

Complete Question:

Asking all job candidates questions from the same interview schedule in the same way is an example of ________.

Group of answer choices

A) validity

B) correlation

C) reliability

D) standardization

Answer:

D) Standardization.

Explanation:

Asking all job candidates questions from the same interview schedule in the same way is an example of standardization.

When recruiters use a standardization in the recruitment process, it involves the process of asking or assessment of all the potential employees using the same question, pattern or method.

Generally, a standardized job interview is assumed to be more objective and effective.

Capital budgeting decisions include ______. increasing the salary of the current company president hiring new factory workers acquiring a new facility to increase capacity deciding to replace old equipment purchasing new equipment to reduce cost determining which equipment to purchase among available al

Answers

Answer:

a.) acquiring a new facility to increase capacity

b.) deciding to replace old equipment

c.) purchasing new equipment to reduce cost

e.) determining which equipment to purchase among available alternatives

f.) choosing to lease or buy new equipment

Explanation:

Capital budgeting refers to the process in which the business analyzed which planned fixed asset should be purchased or not.

The decision is based on whether the fixed asset should provide you better return after invested it or not and choose that fixed asset that generated a better return at minimum cost

Therefore it includes the above answers

Marlene works in a manufacturing facility, Carz Parts. Throughout the building there were posters and calendars of a sexually explicit nature, making Marlene very uncomfortable. Carz Parts:________

a. Practices sexual discrimination.
b. has no legal worries because Marlene is not suffering any economic injury.
c. has no legal worries because none of the offensive materials are directed at Marlene.
d. has a hostile work environment.
e. is engaging in quid pro quo harassment.

Answers

Answer:

d. has a hostile work environment.

Explanation:

Based on this scenario, it seems that Carz Parts has a hostile work environment. This is a work environment that is created by a boss or coworker whose actions, communication or behavior make doing your job impossible by altered the terms, conditions, and/or reasonable expectations of a comfortable work environment. Which in this scenario, the sexually explicit posters were put up and/or allowed by the boss, and since the posters make Marlene very uncomfortable which prevents her from doing her job correctly the boss has therefore created a hostile work environment.

If the market price of a product is between the minimum average variable cost (AVC) and minimum average total cost (ATC) of a firm, that firm will:___________
a) always shut down.
b) always continue to produce.
c) produce in the short run but shut down in the long run.
d) produce in the long run but shut down in the short run.
e) make positive economic profits.

Answers

Answer:

c) produce in the short run but shut down in the long run.

Explanation:

Option C is correct because the price charged is above the average variable cost which means the firm is still covering its variable cost of production. Moreover, if the firm still continues the same in the long run then it will shut down its operation. But if the price charged is below or equal to average variable cost then the firm will shut down its production even in the short run.

Which of the following ratios appears on a common-size balance sheet? I. Debt to asset ratio II. Net working capital to total assets III. Net profit margin

Answers

Answer:

The answer is I, II

Explanation:

Common-size ratio is a way of expressing each line item of a financial statement as a percentage of a selected line item.

For income statement, each line item is expressed as a percentage of net sales or revenue.

For balance sheet, each line item is expressed as a percentage of total assets.

Both I and II are correct because they are expressed as a percentage of total assets and it is a balance sheet

III is wrong because net profit margin is expressed as a percentage of sales

For a perfectly competitive market to function properly, which of the following must buyers and sellers have access to?

Sufficient technology

Uncompetitive products

Economies of scale

Adequate information

Answers

Answer:

Adequate information

Explanation:

Both the buyers and sellers must have access to adequate information. Information are both vital for both the buyers and sellers. For the buyer, it influences their decision making and buying choice. For the seller, it helps them to know the trending buyer need. Hence, for a perfectly competitive market to function well, the buyer and seller must have access to adequate information.

"An industrial park is sold to a group of investors in 2002. They plan to hold on to the industrial park because it is a growing area. The reason the investors consider this a long term investment is because of:"

Answers

Answer:

Investments in things such as an industrial park are done for the long-term mainly because of two reasons:

These investments tend to be expensive (require a lot of capital).Because they are expensive, these investments take more time to make a return, and as a result, the investors have to wait, usually a few years, to earn money on them. For this reason, either they are made for the long-term, or are not made at all.

Answer: appreciation potential

Explanation:

The mayor of Newton is considering proposals to deal with an unsafe intersection. She could install a traffic light at a cost of $50,000 or she could install stop signs at a cost of $5,000. The traffic light is expected to reduce the risk of fatality by 0.45 percent and the stop signs are expected to reduce the risk of fatality by 0.054 percent. If the value of human life is estimated to be $10 million, what choice should the mayor make? Briefly explain.

Answers

Answer:

Install stop signs

Explanation:

It is observed through workings that the benefits of installing traffic signals are less than the cost of installation and the benefit of installing stop signs exceeds the cost of installing them,  therefore it will be wise for Mayor to install stop signs rather than ls signals.

DATA

Value of human life = $10 million

Cost of installing traffic signal = $50,000

Cost of installing stop signs = $5,000

Workings

Benefit ofinstalling traffic signal = 0.45% * $10 million

Benefit ofinstalling traffic signal =  $45,000

Benefit from installing stop signs = 0.054% * $10 million

Benefit from installing stop signs = $5,400

 

An estimate determined by market research of how many people read a single issue of a publication, such as four readers per copy, is known as the

Answers

Answer:

Pass-along readership.

Explanation:

An estimate determined by market research of how many people read a single issue of a publication, such as four readers per copy, is known as the Pass-along readership.

Generally, the total audience of a publication such as a journal, newspaper, magazine etc is a sum total of its active, non-active subscribers and its pass-along readership.

Pass-along readership refers to a situation where a reader doesn't buy a publication themselves but reads it a copy of the publication when the buyer is done.

West Corp. issued 16-year bonds 2 years ago at a coupon rate of 9.5 percent. The bonds make semiannual payments. If these bonds currently sell for 99 percent of par value, what is the YTM?

Answers

Answer:

the YTM of the bond is 9.63%.

Explanation:

Bonds price in most countries is usually expressed per $100. Taking this price into account, the Yield to Maturity (YTM) would be calculated as follows :

Pv = $100 × 99% =  - $99

n = 14 × 2 = 28

pmt = ($100 × 9.5 %) ÷ 2 = $4.75

p/ yr = 2

Fv = $100

YTM = ?

Using a Financial Calculator, the yield to maturity, YTM is 9.6316 or 9.63%.

Sam filed a discrimination case against his employer with the Equal Employment Opportunity Commission (EEOC). The EEOC sent a notice of charge to Sam's employer. In this scenario, which of the following is most likely to be the immediate next step in the process of bringing a discrimination claim with the EEOC?

a. Both Sam and his employer will receive a referral to mediation from the EEOC, if appropriate.
b. The EEOC will issue a right-to-sue letter to Sam.
c. Both Sam and his employer will have to offer evidence to the U.S. Supreme Court as soon as the notice of charge is issued.
d. The EEOC will immediately investigate the claim.

Answers

Answer:

The correct answer is the option A: Both Sam and his employer will receive a referral to mediation from the EEOC, if appropiate.

Explanation:

To begin with, the U. S. Equal Employment Opportunity Commission or EEOC is the name given to a federal agency in the United States whose main purpose is to manages and enforces civil rights laws against workplace discrimination that people might suffered from their employers. Therefore that in the cases where the employee presents a discrimination case against his employer, then after the receival from both parties of the notice of charge from the EEOC, the Commission will send a referral to mediation due to the fact that is the most easy and cheap way to continue the case from both sides, thanks to that maybe an agreement between them could be arranged.

An employee earns $5,750 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $208 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $176 and contributes $88 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? a. $5,207.b. 53.c. $5,296.70.d. $5,158.32.e. $4,826.22.f. $4,875.42.

Answers

Answer:

Net Pay for the employee $5,238.125

Explanation:

The computation of the amount of net pay for the employee for the month of Jan is shown below:

Particulars                          Amount

Wages Per Month                $6,150

Less:

Federal Income Taxes Withheld -$208

FICA Social Security  -$356.50 ($5,750 × 6.2%)

FICA Medicare -$83.375 ($5,750 × 1.45%)

Health Insurance    -$176

Retirement Plan      -$88

Net Pay for the employee $5,238.125

This is the answer but the same is not mentioned in the given options.

If you are using the social ecological model to help an employer change the personal time allocations based on seniority at a large corporation, you would be changing factors at the intrapersonal level of influence.

a. True
b. False

Answers

Answer:

a. True

Explanation:

The social-ecological model is the model that comprises of an individual, relationship, community and societal. here individual is based on age, education income, etc. The relationship can be in family, peer group, etc. The community could be in social, school, religious places, etc. And, the societal could be in society and its cultural norms

Based on the given situation, the statement is true as the factors could be changed according to the level of intrapersonal.

You’re reviewing the campaigns of a new client who wants to better promote his child daycare facility to parents researching childcare on their mobile devices. Currently, his ads include generic text about childcare. To optimize his ads for mobile, you might create an ad with:

A. the computer version of the facility’s website as the landing page, and a headline and description text that encourages people to sign up for the facility’s newsletter

B. a headline and description text that includes a customer testimonial, and uses the previous visits automated ad extension to let people see when they last visited the client’s website

C. the mobile version of the facility’s website as the landing page, and uses an interactive video showing current students and teachers reading together

D. a headline and description text that encourages people to sign up for a tour, and uses location extensions so they know where the client’s business is located

Answers

Answer:

B. a headline and description text that includes a customer testimonial, and uses the previous visits automated ad extension to let people see when they last visited the client’s website

Explanation:

This is the best because, a testimonial from people who have used the daycare facility encourages others to signup for it for their child(ren).

explain the income method of calculating national income. assume that a farmer sells wheat to miller for rs. 15. the miller turns wheat into flour, which she sells to a baker for rs. 35. the baker turns the flour into bread and sells to consumer for rs. 60. calculate the gdp in this case? which method do you use to calculate gdp in this case? what precautions should be taken in that method?

Answers

Answer:

The income method calculates the GPD by adding all the income generated by each production stage included in the GDP.

In this case, using the income method:

Farmer                sells wheat             income = 15

Miller                   produces flour       income = 35 - 15 = 20

Baker                  makes bread          income = 60 - 35 = 25

total GDP                                            15 + 20 + 25 = 60

If you use the expenditures method, you just account for the price of bread = 60. Both methods should yield the same result.

When using the income method, you must be very careful with depreciation and foreign factors.

President Chris Zane mentions that employees' performance is not evaluated every six months or every year as in many organizations. Zane's Cycles uses Saturday meetings for everyone to come up to speed and to discuss issues. These meetings represent a controlling process that is used to _____.

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Discuss failures of individuals of the company

b) Establish performance standards as a group

c) Measure, evaluate and take corrective action

d) Correct employees' actions by berating and celebrating

e) Cross-train employees

And the correct answer is the option C: measure, evaluate and take corrective action.

Explanation:

To begin with, when it comes to terms of control regarding the inside structure of an organization, the managers use different processes and techniques to take on that job of controlling the employes of the company in order to see how everything is going. In the case of Chris Zane, as he wants to do a control every week, then he is absolutely interesting in evaluating and measuring the improvements of every one inside the business so in that way he can take action in time to correct something if it is not going as planned. And that is the main reason why he would use a controlling process where he needs to have everything going as planned.

The tax assessment ratio for a house valued at $250,000 is 80%. If the tax rate is $2.00 per $100 what is the annual tax?

Answers

Answer:

$4,000

Explanation:

First, you have to determine the 80% of $250,000:

$250,000*0.8= $200,000

Then, you can use the rule of three to determine the annual tax:

$2→$100

x ← $200,000

x=(200,000*2)/100=$4,000

According to this, the answer is that if the tax rate is $2.00 per $100, the annual tax is $4,000.

To satisfy their economic wants, people ______ goods and services.

Answers

Answer: Consume.

Explanation: To satisfy their wants humans tends to consume goods and services. consumes in this sentence is used to indicate the Human purchasing power to sati their needs. And what are human needs this are what we need to survive on a daily basis mainly food, clothes and shelter. So by consuming goods and services we are satisfying our need.

Answer:

Answer: Consume.

Explanation:

Increasing complexity of management and challenges of coordination as firms produce more of the same product can be a source of

Answers

Complete Question:

Increasing complexity of management and challenges of coordination as firms produce more of the same product can be a source of

Group of answer choices

a. economies of scale.

b. learning curves.

c. diseconomies of scale.

d. increasing marginal productivity.

Answer:

C. diseconomies of scale.

Explanation:

Increasing complexity of management and challenges of coordination as firms produce more of the same product can be a source of diseconomies of scale.

Diseconomies of scale can be defined as the cost disadvantages or pitfalls that an organization accrues as a result of its expansion or increase the level of production and output. This ultimately implies that, due to an increase in quantity of goods being produced or organizational size, the cost per unit for each product rises.

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