Investors expect the market rate of return this year to be 15.00%. The expected rate of return on a stock with a beta of 1.3 is currently 19.50%. If the market return this year turns out to be 12.80%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Expectation of rate of return on the stock is  16.64%

Explanation:

Ke=Rf+beta(Mrp-Rf)

Rf is unknown

Mrp is 15%

Ke is 19.5%

beta is 1.3

19.5%=Rf+1.3(15%-Rf)

19.5%=Rf+19.5%-1.3Rf

19-5%-19.5%=Rf-1.3Rf

0%=-0.3Rf

Rf=0%/-0.3

Rf=0%

By substituting the value of Rf in the original formula ,we can now calculate Ke when Mrp is 12.80%,beta is 1.3 Rf is 0%

Ke=0%+1.3(12.80%-0%)

Ke=0%+16.64%+0%

Ke=16.64%

the correct answer is:

it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.

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