Business, 31.10.2019 02:31 kornut5536

Stock x has a beta of 0.6, while stock y has a beta of 1.4. which of the following statements is correct? a. stock y must have a higher expected return and a higher standard deviation than stock x. b. if expected inflation increases but the market risk premium is unchanged, then the required return on both stocks will fall by the same amount. c. if the market risk premium declines but expected inflation is unchanged, the required return on both stocks will decrease, but the decrease will be greater for stock y. d. if expected inflation declines but the market risk premium is unchanged, then the required return on both stocks will decrease but the decrease will be greater for stock y. e. a portfolio consisting of $50,000 invested in stock x and $50,000 invested in stock y will have a required return that exceeds that of the overall market.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 14:50

One pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 20% of the following month's production needs. purchases of raw materials for february would be budgeted to be:

Answers: 2

Answer

Business, 22.06.2019 18:00

Bond j has a coupon rate of 6 percent and bond k has a coupon rate of 12 percent. both bonds have 14 years to maturity, make semiannual payments, and have a ytm of 9 percent. a. if interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?

Answers: 2

Answer

Business, 22.06.2019 20:30

Mordica company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $156,960, $382,800, and $84,640, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,180, machine hours 25,520, and number of inspections 1,840. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection

Answers: 1

Answer

Business, 22.06.2019 20:40

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.

Answers: 2

Answer

You know the right answer?

Stock x has a beta of 0.6, while stock y has a beta of 1.4. which of the following statements is cor...

Questions