Assume that the capm holds. one stock has an expected return of 8% and a beta of 0.5. another stock has an expected return of 13% and a beta of 1.5. part 1 ib - attempt 1/10 for 10 pts. what is the expected return on the market?

10.5%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

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

For one stock

8% = Risk-free rate of return + 0.5 × (Market rate of return - Risk-free rate of return)

8% = Risk-free rate of return + 0.5 × Market rate of return - 0.5 × Risk-free rate of return

8% =  0.5 × Risk-free rate of return + 0.5 × Market rate of return

8% ÷ 0.5 = Risk-free rate of return + Market rate of return

So, Risk-free rate of return + Market rate of return = 16

Risk-free rate of return = 16 - Market rate of return             - 1

For another stock

13% = Risk-free rate of return + 1.5 × (Market rate of return - Risk-free rate of return)

13% = Risk-free rate of return + 1.5 × Market rate of return - 1.5 × Risk-free rate of return

13% =  - 0.5 × Risk-free rate of return + 1.5 × Market rate of return        - 2

Now put these equations together

13% =  - 0.5 × (16 - Market rate of return)  + 1.5 × Market rate of return

13% = - 8 + 0.5 × Market rate of return + 1.5 × Market rate of return

So, Market rate of return would be

= 21 ÷ 2

= 10.5%

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported

answer; coefficient of correlation;