The market rate of return is 11 per cent and the risk-free rate of return is 3 per cent. Lexant NV has 3 per cent less systematic risk than the market and has an actual return of 12 per cent. This equity:

Answers

Answer 1

Answer:

underpriced

Explanation:

Without mincing words, let us dive straight into the solution to the solution to the question. From the above problem, the following data or information are given:

=> market rate of return = 11 per cent, risk-free rate of return = 3 per cent,  Lexant NV = 3 per cent less systematic risk than the market, actual return = 12 per cent.

The expected return = [ 11% - 3%] × 0.97 + 3%  = 10.76%.

We are given the actual return to be 12% which is greater than the expected return which is 10.76%.

The equity is overpriced.


Related Questions

What is the world's largest free trade area?

Answers

Answer: free market

Explanation:

The free market is where all the stocks are shared, The answer is free market!

Answer:

The world's largest free trade area, encompassing 54 countries and 1.2 billion people, the African Continental Free Trade Area will bring the promise of trade-led economic growth closer to reality for Africa's entrepreneurs, industrialists, investors, innovators and service suppliers.

sorry if it wrong

Question 1 of 10
Monetary policy deals with government actions intended to:
A. help unemployed citizens find jobs.
B. increase exports to other countries.
C. damage a foreign country's economy.
D. control the country's money supply.
SUBMIT

Answers

Government initiatives aimed at regulating the nation's money supply are referred to as monetary policy. Therefore (D) is the correct option.

What is money supply?

The money supply is the entire amount of money—cash, coins, and bank account balances—in circulation. The money supply is the total amount of cash and other liquid assets in an economy on the measurement date.

When the government makes decisions regarding the money supply in the country, it is done to regulate the money supply in the country.

Therefore, (D) is the correct option.

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We have this project in my business class, we have to come up with a store/business. I choose a candy store but I can’t think of any fine names. Can someone help me come with a name please?

Answers

Answer:

Candy Crush

Explanation:

Its catchy

Answer:

The Sweete Shoppe

The Lolly Pop

50 Shades of Candy

Explanation:

Eyan is giving a seminar on environmental conservation efforts in a local factory. Which qualities is Eyan using when writing and presenting his seminar? leadership, supervising, and teaching skills critical-thinking skills and knowledge of environmental regulations communication skills and physical strength knowledge of machines and responsibility in operating heavy equipment

Answers

Answer: critical-thinking skills and knowledge of environmental regulations

Explanation:

Since Eyan is giving a seminar on environmental conservation efforts in a local factory, the quality that Eyan is using when writing and presenting his seminar will be critical-thinking skills and knowledge of environmental regulations.

Eyan should possess critical thinking skill as he should be able to think clearly and at the same time should also have knowledge of environmental regulations.

Answer:

critical-thinking skills and knowledge of environmental regulation

Explanation:

It's below me

_ 5. Which of the following is an example of terminal punctuation?
A. Comma.
B. Question mark.
C. Quotation mark.
D. Colon.​

Answers

B. question mark
terminal punctuation refers to punctuation marks used to identify the end of a portion of text.

Police: 911, what’s your emergency
Me: omae wa mou shindeiru ✨nani?!?✨
Police: *ded*

Answers

TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ vTeeHee ✨ vTeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ vvTeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ vTeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ vvTeeHee ✨ TeeHee ✨ vvv teehee

New home construction is at an all-time high, due to increased demand the cost of new homes has gone up 15%,
In which phase of the business cycle is the economy?

Answers

Answer:

Peak

Explanation:

The business cycle refers to the routine growth and decline of economic activities in a country. Naturally, an economy experiences periods with high economic activities and seasons with subdued growth.

The peak is the business cycle when the economy experiences high growth. At the peak cycle, businesses experience high sales volumes, the rate of unemployment is low, and prices are high. The level of economic growth is measured through GDP. At the peak, the GDP value is high.

Write the names of sender and receiver of quotation letter in foreign trade.​

Answers

Answer:

Wydm

Explanation:

If you are trying to persuade an audience on a question of fact, you are dealing with

Answers

Answer:

Persuasive Speech

Explanation:

In order to hold the audience's attention until the very end and to achieve the desired effect, the message you are transmitting must be clear, communicated in simple language, and understandable to everyone. Try to avoid too many professional terms, except in parts of speech, where necessary.

A good speaker is one who understands the masses, the average citizen who speaks the ordinary language. Be convincing. Argued. The message should instill confidence in the listeners and let them know that you are confident and professional.

A personal financial statement is also called which of the following?

Answers

Answer:

The term personal financial statement refers to a document or spreadsheet that outlines an individual's financial position at a given point in time. The statement typically includes general information about the individual, such as name and address, along with a breakdown of total assets and liabilities. The statement can help individuals track their financial goals and wealth, and can be used when they apply for credit.

Why do many investors choose to make diversification a key element of their investment strategies?

Answers

Spreading out investments through diversification reduces the likelihood of losing money is the way diversification of investment strategies.

What is diversification, and what does it reduce in a portfolio?

In order to lower the risk of market volatility, investors frequently use the investment strategy of diversification, in which they distribute their portfolio among a variety of securities and asset classes.

It is a component of asset allocation, which refers to how much of a portfolio is invested in different asset types.

Thus, Spreading out investments through diversification reduces the likelihood of losing money

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Answer: C. Diversification spreads out investments to limit the risk of losing money

Explanation:

I just took the quiz

Write a short paragraph of two or three sentences describing the benefits of sending a cover letter along with your résumé.

Answers

Answer:

Some benefits of sending a cover letter along with your resume includes, Recruiters will see who put the work in. Your resume is factual, your  cover letter is personal. It demonstrate your interest. Show you've done your research. Give them a taste of who you are. These are benefits for sending in your cover letter along with your resume.

Explanation:

It is NOT the sample response, no need to alter it I made it myself. Hope this helps

Employers are more likely to view your resume if one include a cover letter with it.

Define resume and cover letter.

The facts — whom, what, where, and how – are stated in a resume. A cover letter allows you to show why you are qualified for the position.

Employers are more likely to view your resume if one include a cover letter with it.

The cover letter provides personalized information and the resume is factual.

Your cover letter should convey your enthusiasm.

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In addition, to funding government programs, a Progressive tax system is intended to

Answers

Answer:

see below

Explanation:

A progressive tax system exacts a higher tax rate on higher-income earners. It is based on the ability to pay principle. It results in wealthier people paying more than the less wealthy.

Apart from collecting higher income for the government, the other benefits for the tax system include;

1. Progressive taxes tend to be equitable because rich individuals pay more taxes than poor people. It is fair in the sense that the rich can pay more as compared to the poor.

2. Progressive taxes tend to reduce inequalities in the distribution of income and wealth.

3. It is less costly to administer the progressive tax system.  

Select all the correct answer. Which TWO statements comparing stock and bond investments are true? A. Bonds typically offer higher returns than stocks. Stocks have higher risk than bonds. B. A bond offers fixed interest income, while a stock may offer dividends to investors. C. Investors pay a brokerage fee for buying and selling bonds, while they pay an advisory fee for buying and selling stocks. D. Bonds are traded on an equity-based exchange, while stocks are purchased directly from a corporation.

Answers

Answer:

B, C

Explanation:

A stock gives the holder of the stock ownership right in the company that issues the shares.

Stockholders may earn dividends from a company.

Stocks are usually traded on exchanges

Stocks are more risky than bonds so they offer higher returns.

A bond is a debt instrument.

Debtholders are entitled to fixed interest rate payments.

Bonds are usually sold over the counter

Answer:

2. 3.

Explanation:

You own a roofing company the roofers are replacing shingles on a house it takes 7/8 of 50 pound box of nailes to install shingles on 1/4 of the roof how many boxes of nails will the company need to install shingles on the entire roof

Answers

Answer:

3.5 boxes

Explanation:

If that is what it takes to install shingles on 1/4 of the roof then we would need to multiply this amount by 4 to find out how many boxes it would take to complete the entire roof, since 4 times 1/4 would equal 4/4 which represents the entire roof.

7/8 * 4 = 3.5 boxes of nails

Finally, after completing this calculation we can see that it would take the company 3.5 of 50 pound box of nails to complete the entire roof, that would mean a total of

3.5 * 50 = 175 pounds of nails

Why are mutual funds considered a high-risk form of investment?
A. They rely on risky practices such as investing borrowed money.
B. They are owned and controlled by the federal government.
C. They cannot be withdrawn for at least 30 years after investment.
D. They involve buying stocks that have unpredictable value.

Answers

Mutual funds are considered a high-risk form of investment because they involve buying stocks that have unpredictable value. Therefore, (D) is the correct option.

What are Mutual Funds?

A corporation that pools money from several investors and invests it in stocks, bonds, or other assets is known as a mutual fund.

They are considered highly risky because they deal with unpredictable stock.

Therefore, (D) is the correct option.

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When a strong unity of command is present, employes are assigned to more than one manager.
True
False

Answers

Answer:

The correct option is;

False

Explanation:

Unity of command is the organizational arrangement, whereby all employee assigned to a particular department answer to their line manager, and vice, versa, the line manager directs the activities of all employees within his department to perform the tasks of the organizational engagement or projects for which the department is in responsible.

If the productivity of workers producing a good increases, the supply curve will

A) not change.
B) become flatter.
C) shift to the right.
D) shift to the left.
E) become steeper.

Answers

I’d say E because that’d mean that there would be more supply

Give a least two reseons why u think your product and country would be a good idea

Answers

Answer:

my Product and Country Would be a good idea because instead of charging taxes I would make sure everyone is not at the same level but to a point to where no one is homeless or in need of help my product would be something that could make food for free and anytime food is not hard to come by but the wealthy buys so much food that they don't need and discard that those who do need the food cannot retrieve the food because it is already gone being wealthy is nice but if I was wealthy I would try to at least let those around me either become wealthy or make sure they never need something to the point they could die for it.

Explanation:

Before applying for a credit card, Jacob examines his credit report. Which explains why Jacob might examine his credit report?
to determine which company has the best credit card features
to determine if he has a history of good credit
to determine if he needs a credit card
to determine his credit limit

Answers

Answer:

B

Explanation:

I took the quiz

Jacob might examine his credit report to determine if he has a history of good credit. Thus the correct option is B.

What is a credit card?

A credit card is supposedly a sort of plastic currency that enables a person to make purchases on credit and then reimburse the money with interest at a later date.

In order to avoid excessive spending, one should keep in mind that if a credit card debt is left unpaid at the end of the credit limit, interest will be imposed on the remaining balance.

Your creditworthiness, payment history, and ability to repay a loan are all factors that mortgage lenders consider when approving a loan. This enables you to manage and improve your credit rating by demonstrating your credit growth.

Therefore, option B is appropriate.

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What is the purpose of active listening?

Answers

Explanation:

Active listening serves the purpose of earning the trust of others and helping you to understand their situations. Active listening comprises both a desire to comprehend as well as to offer support and empathy to the speaker.

Gaining others' trust and gaining insight into their circumstances are two benefits of active listening. Both a want to understand and a desire to support and empathize with the speaker are components of active listening.

What are components?

A component is an identifiable portion of a larger program or construction in the programming and engineering fields. A component often performs one specific function or a set of related functions. A component is something that is a piece of a bigger whole. An example of a component is a CD player in a stereo system. An illustration of a component is an ingredient in a recipe. Noun.

Abiotic factors are non-living parts of an ecosystem that have an impact on their surroundings. Terrestrial ecosystems can be characterized by factors like temperature, light, and water. Ocean currents and salinity are examples of abiotic components in a marine ecosystem.

Active listening is a technique for listening to and responding to another person that enhances comprehension between the two parties. To diffuse the situation and look for solutions to issues, it is crucial to take this initial move. Students will learn what active listening is in this session and why it is crucial for handling disagreements.

Therefore,  the speaker is a component of active listening.

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Many workers do not have to drive to an office location. Their offices may be located in their homes. These workers are known as _____.

Answers

Answer:

telecommuter

Explanation:

A person who telecommutes is known as a "telecommuter", "teleworker", and sometimes as a "home-sourced", or "work-at-home" employee. A telecommuter is also called a "telecommuting specialist", as a designation and in a professional context.

Am I the only one who believes that having to pay for Brainily+ to get answers, and better answers at that, to be unfair? I understand that the company needs money, but I think that learning shouldn't have limits or a price tag.

Answers

yes it is unfair exactly like people can’t afford sometimes
Yes it's unfair! ...........

Demand for a good will MOST likely decrease when
A
there are many substitutes for it.
B
the price of it decreases.
C
consumer income rises by ten percent.
D
retailers sell out of the product.

Answers

Answer:

A. There are many substitutes for it.
I’d Definitely say A.

The chart indicates the education or training histories of three employees in the Agriculture, Food, and Natural Resources career cluster. A 2-column table with 3 rows. Column 1 is labeled Employee with entries Prisha, Amos, Deliah. Column 2 is labeled Education and Training with entries High school degree, bachelor's degree, master's degree; High school degree, bachelor's degree; High school degree, on-the-job training. Based on the degrees usually required by Agriculture, Food, and Natural Resources, what are most likely the jobs held by these three employees? Prisha is a Food Scientist, Amos is a Veterinarian, and Deliah is a Floral Designer. Prisha is a Parts Salesperson, Amos is an Environmental Compliance Inspector, and Deliah is a Greenhouse Manager. Prisha is a Park Worker, Amos is an Environmental Engineer, Deliah is a Zoologist. Prisha is a Farm and Management Advisor, Amos is a Forester, and Deliah is an Equipment Operator.

Answers

Answer: D

Explanation:

Answer:

D

hope this helps!!!!11

Explanation:

Which type of workplace culture emphasizes the development of new skills?

Answers

Answer: involvement is the answer just took it.

Explanation:I just took it hope that helps

Answer:

C. involvement-oriented

Explanation:

I just took the test

How does the work done by agriculture communications professionals compare to and differ from that of other marketing workers?

Answers

Answer:

Agriculture communications professionals need to have the same basic background on marketing, covering areas such as market research, product research, and market communication.

However, they will also need to have an agriculture-related background, because they need to understand the dynamics of the agriculture business, from farm issues, to the kind of crops or produce that they can buy or sell in a specific area, to even agricultural policy.

After asking coworkers to review a project plan, you receive feedback. Your coworker thinks there is a better way to display the data in the business report.You should add a
title
reference
abstract
table

Answers

Answer:

table

Explanation:

What does the functional organizational structure organize employees by?

Select one:
a. specialty
b. product
c. profit
d. age

Answers

Answer:

D

Explanation:

I hope this is correct and have a great day

Which of the following relies the most on the health of the economy?
•Builders
•Manufacturers
•Trade industries
•Producers

Answers

Answer: Trade Industries

Explanation:

Trade industries survive as long as people and businesses can afford to trade goods and services. If entities are unable to afford consumption for a reason such as a decline in income, the trade industries will suffer.

When the economy is not healthy, income levels of people will reduce and so trade industries will suffer as opposed to a healthy economy where entities can afford goods and services which will ensure the survival of trade industries.

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