You are offered two stocks. The beta of A is 1.4 while the beta of B is 0.8. The growth rates of earnings and dividends are 10% and 5%, respectively. The dividend yields are 5% and 7%, respectively.
Since A offers higher potential growth, should it be purchased?
Investments- Individual Work 2 Page 3
Since B offers a higher dividend yield, should it be purchased?
If the risk-free rate of return were 7% and the return on the market is expected to be 14%, which of these stocks should be bought?

Answers

Answer 1

Answer:

a) Yes , Cause The Expected Returns of stock A is Higher than that of B

b) No,  Cause The Expected Returns of stock B is Lower than that of A

Step-by-step explanation:

From the question we are told that:

Beta A \beta A=1.4

Beta B \beta B=0.8

Stock 1 Growth rates of earnings and dividends G_1=10\%

Stock 2 Growth rates of earnings and dividends  G_2=5\%

Stock 1  Dividend yields D_1=5\%

Stock 2 Dividend yields  D_2=7\%

Generally the equation for Expected Returns is mathematically given by

Expected Returns =Growth rates+Dividend yields

For Stock 1

Expected\ Returns =G_1+D_1

Expected\ Returns =5%+10%

Expected\ Returns =15%

For Stock 2

Expected\ Returns =G_2+D_2

Expected\ Returns =7%+5%

Expected\ Returns =12%

Therefore

a) Yes , Cause The Expected Returns of stock A is Higher than that of B

b) No,  Cause The Expected Returns of stock B is Lower than that of A


Related Questions

The BBQ club meets every Thursday. The meetings last 2 1/2 hours. There were 5 Thursdays in
September. How many hours did the BBQ club meet in September?


A.2 1/2 hours
B.5 hours
C.12 1/2 hours
D.10 hours

Answers

Answer:

12 1/2

Step-by-step explanation:

2 x 5 = 10

1/2 x 5 = 2 1/2

10 + 2 1/2 = 12 1/2

Which equation has the same solution as 10(x) - x + 5 = 41

Answers

Step-by-step explanation:

if that is truly the full problem description, then we have

10x - x + 5 = 41

=>

9x = 36

our simply

x = 4

so, I am not sure, what your teacher wants to see as result.

there is an infinite number of equations I could find, all with the solution x = 4.

Use AABC to find the value of sin B.

Answers

Answer:

35/37

Step-by-step explanation:

sin(B)=(AC)/(AB) = 35/37

Solve the equation by graphing. If integral roots cannot be found, estimate the roots by stating the consecutive integers between which the roots lie. -2p2=12p+15

Answers

9514 1404 393

Answer:

  roots are between -5 and -4, and between -1 and -2.

Step-by-step explanation:

The graph shows the roots are approximately ...

  -4.2 — between -5 and -4

  -1.8 — between -2 and -1

A company produces 2 types of computers; desktops and laptops

Answers

Answer:

?

Step-by-step explanation:

What is the image of (3, -12) after a dilation by a scale factor of į centered
at the origin?

Answers

Answer:

9 is. ................m.m..mk

Keith is trying to figure out the area of his pool section in his backyard he knows that his pool is 20 feet long and 9 feet wide he also knows the sidewalk is 3 feet wide all around the floor what is the total area of the pool section of Keith’s backyard?

Answers

Answer:

The total area of the pool section of Keith's backyard is 390 square feet.

Step-by-step explanation:

Since Keith is trying to figure out the area of his pool section in his backyard, and he knows that his pool is 20 feet long and 9 feet wide, and he also knows the sidewalk is 3 feet wide all around the floor, to determine what is the total area of the pool section of Keith's backyard, the following calculation must be performed:

(20 + 3 + 3) x (9 + 3 + 3) = X

26 x 15 = X

390 = X

Therefore, the total area of the pool section of Keith's backyard is 390 square feet.

Help me please --------------------

Answers

9514 1404 393

Answer:

  139.39 in

Step-by-step explanation:

The length of a semicircle of diameter D is ...

  C = (1/2)πD

For the given diameter of 27 inches, the length of the curved edge of the figure is ...

  C = 1/2(3.14)(27 in) = 42.39 in

__

The perimeter of the figure is the sum of the side lengths. Clockwise from left, that sum is ...

  P = 27 + 35 + 42.39 + 35 = 139.39 . . . inches

The perimeter of the figure is 139.39 inches.

Solve the above quadratic equation

Answers

Answer:

r = 1

Step-by-step explanation:

Find the intersection.

r = 1

r = 3

r = -1

r = 1

Answer:

r=3, r=1, r= -1

Step-by-step explanation:

48r^3-144r^2-48r=-144

48r^3-144r^2-48r +144 =-144 + 144

48r^3-144r^2-48r+144=0

48(r-3)(r+1)(r-1)

r-3=0 r+1=0 r-1=0

r=3, r=1, r= -1

find each measurement indicated round your answers to the nearest tenth. Part 1d. NO LINKS OR ANSWERING QUESTIONS YOU DON'T KNOW!!!

Answers

Answer:

see explanation

Step-by-step explanation:

Using the Sine rule in all 3 questions

(1)

[tex]\frac{a}{sinA}[/tex] = [tex]\frac{b}{sinB}[/tex] , substitute values , firstly calculating ∠ B

[ ∠ B = 180° - (78 + 49)° = 180° - 127° = 53° ]

[tex]\frac{a}{sin78}[/tex] = [tex]\frac{18}{sin53}[/tex] ( cross- multiply )

a sin53° = 18 sin78° ( divide both sides by sin53° )

a = [tex]\frac{18sin78}{sin53}[/tex] ≈ 22.0 ( to the nearest tenth )

(3)

[tex]\frac{c}{sinC}[/tex] = [tex]\frac{a}{sinA}[/tex] , substitute values

[tex]\frac{35}{sinC}[/tex] = [tex]\frac{45}{sin134}[/tex] ( cross- multiply )

45 sinC = 35 sin134° ( divide both sides by 35 )

sinC = [tex]\frac{35sin134}{45}[/tex] , then

∠ C = [tex]sin^{-1}[/tex] ( [tex]\frac{35sin134}{45}[/tex] ) ≈ 34.0° ( to the nearest tenth )

(5)

Calculate the measure of ∠ B

∠ B = 180° - (38 + 92)° = 180° - 130° = 50°

[tex]\frac{a}{sinA}[/tex] = [tex]\frac{b}{sinB}[/tex] , substitute values

[tex]\frac{BC}{sin38}[/tex] = [tex]\frac{10}{sin50}[/tex] ( cross- multiply )

BC sin50° = 10 sin38° ( divide both sides by sin50° )

BC = [tex]\frac{10sin38}{sin50}[/tex] ≈ 8.0 ( to the nearest tenth )

A lottery ticket has a grand prize of $30.1 million. The probity of winning the grand prize is .000000038
Deteman the expected value of the lottery ticket

Answers

Answer:

$30.1 million * .000000038

$1.14

did the question say how much the ticket cost?

if it was $1 then you would have to subtract $1 so the expected value would be 14 cents

Step-by-step explanation:

solution 2^2x+3-7(2^2x+1)+3=0 introduce Log​

Answers

Answer:

[tex]x = \frac{log\sqrt{-1/6}}{log2}[/tex]

Step-by-step explanation:

Given the expression

[tex]2^{2x}+3-7(2^{2x}+1)+3=0[/tex]

Let [tex]P=2^x[/tex]

Substituting into the expression, we will have:

[tex]P^2+3-7(P^2+1)+3=0\\Expand\\P^2+3-7P^2-7+3=0\\-6P^2-1=0\\6P^2=-1\\p^2=-1/6\\P=\sqrt{-1/6}[/tex]

Since:

[tex]P=2^x\\2^x=\sqrt{-1/6}\\xlog2=log(\sqrt{-1/6}) \\x = \frac{log\sqrt{-1/6}}{log2}[/tex]

Simplify Square root (150n^2)

Answers

Answer:

12

Step-by-step explanation:

Please help me determine the general equation for the graph above as well as solve for a. Thank you.

Answers

Observe that the x coords of the roots of a polynomial are,

[tex]x_{1,2,3,4}=\{-3,0,1,4\}[/tex]

Which can be put into form,

[tex]y=a(x-x_1)(x-x_2)(x-x_3)(x-x_4)[/tex]

with data

[tex]y=a(x-(-3))(x-0)(x-1)(x-4)=ax(x+3)(x-1)(x-4)[/tex]

Now if I take any root point and insert it into the equation I won't be able to solve for y because they will always multiply to zero (ie. when I pick [tex]x=-3[/tex] the right hand side will multiply to zero,

[tex]y=-3a(-3+3)(-3-1)(-3-4)=0[/tex]

and a will be "lost" in the process.

If we observed a non-root point that we could substitute with x and y and result in a non-loss process then you could find a. But since there is no such point (I don't think you can read it of the graph) there is no other viable way to find a.

Hope this helps :)

What is the equation of a line that passes through the point (5,-3) and has a slope of -2

Answers

Answer:

y=-2x+7

Step-by-step explanation:

The Slope is obviously -2, and just add a random y and play around with it until it goes through the point (5,-3)

Find the length of the arc.
A. 21/π4 in
B. 18π in
C. 45/π8 in
D. 1890π in

Answers

Answer:

we know that all Lenght of circle is 2πr so 2*π*7=14π

Step-by-step explanation:

14π equal to 360°

but we need just 135° so we should write it kind of radian(π)

if 14π=360°

x=135°

14π*135=360°*x 14π*27=72*x ........= 14π*3=8*x

7π*3=4*x ....... X=21π/4

The length of the arc is 21/π4 in

An answer is an option A. 21/π4 in

What is the arc of the circle?

The arc period of a circle can be calculated with the radius and relevant perspective using the arc period method.

⇒angle= arc/radius

 ⇒  135°=arc/7

⇒ arc =135°*7

  ⇒arc=135°*π/180° *7in

⇒arc = 21/π4 in

Learn more about circle here:-brainly.com/question/24375372

#SPJ2

What is the distance from point Yto wx in the figure below?
W 16 Z
30
X
1612
34
O A. 4
O B. 162
O C. 16
O D. Cannot be determined
E. 16/3
F. 8

Answers

The length of YZ in the similar triangle given is calculated using Pythagoras theorem which gave us 16√3

What are Similar Triangle

Similar triangles are two or more triangles that have the same shape but may be different sizes. They have the same angles and corresponding sides that are proportional.

In this problem, we need to use the concept of ratio and proportions to find the length of YZ

However, we can simply use Pythagoras theorem to determine the length.

According to Pythagoras' Theorem, the square of the hypotenuse, or side opposite the right angle, in a right-angled triangle, is equal to the sum of the squares of the other two sides.

It is expressed as the equation a² + b² = c².

This is because the triangles forms a right angled triangle and we can easily apply that here.

YZ² = 16² + (16√2)²

YZ² = 768

YZ = √768

YZ = 16√3

The length or distance from point Y to WX which is the same as the length of YZ is calculated as 16√3.

Learn more on similar triangle here;

https://brainly.com/question/14285697

#SPJ1

Answer:

C. 16

Step-by-step explanation:

I hope this helps :)

3 lawns in 9 hours.what was the rate of mowing in hours per lawn

Answers

Answer:

3

Step-by-step explanation:

3 = 9 \:th \\ 1 = 3 \\ 3 \times 3 = 9 \\ 9 \div 3 = 3 \\ so \: that \: answer \: is \: 3

3 because 3x3 = 9 and that just makes more sense then to put anything other unless I’m missing something it’s 3

A board that measures 3/4 feet long is cut into 6 equal pieces . What is the length of each price

Answers

Step-by-step explanation:

8 cm² is the correct answer for that question

Given:

Board Length = 3/4

6 equal pieces = 3/4 ÷6

= 3/4 × 1/6

= 1/4 × 1/2

= 1/8

Therefore each equal piece will be 1/8 feet long

Answered by GauthMath if you like please click thanks and comment thanks too.

p(X)=x²+50 then p(2)=
a) 6
b)7
c)8
d)9​

Answers

Answer:

54

Step-by-step explanation:

p(x)=x^2+50, p(2)=2^2+50=54

P(x) = x² + 50

P(2) = 2² + 50

= 54

P(6) = 6²+50

= 86

P(7) = 7²+ 50

= 99

P(8) = 8²+50

= 114

P(9) = 9²+50

= 131

Answered by Gauthmath must click thanks and mark brainliest

simplify using the laws of exponents (4^3)^-2 × (2^3)^4 ×(8/15)^-2​

Answers

Answer:

[tex] \dfrac{225}{64} [/tex]

Step-by-step explanation:

[tex] (4^3)^{-2} \times (2^3)^4 \times (\dfrac{8}{15})^{-2} = [/tex]

[tex]= (2^2)^{-6} \times 2^{12} \times (\dfrac{15}{8})^{2}[/tex]

[tex]= 2^{-12} \times 2^{12} \times \dfrac{225}{64}[/tex]

[tex] = \dfrac{225}{64} [/tex]

the diameter of a circle is 8 cm what is its area?

Answers

A = πr^2 and d = 2r.

So r = 8/2 = 4 cm.

Now use the first formula

A = π(4 cm)^2 = 50.265 cm^2

What is |1-8i|?

A.
B.
C
D

Answers

9514 1404 393

Answer:

  (b) √65

Step-by-step explanation:

The modulus of a complex number is the root of the sum of the squares of the real and imaginary parts.

  |1 -8i| = √(1² +(-8)²) = √(1+64) = √65

If only the height of a pyramid is doubled its volume is Also doubled true or false

Answers

Answer: true

Step-by-step explanation:

need help pls with this question. im struggling with this question.

Answers

Answer:

i can't rn but i could explain to you how... so first put a point on 0,5 then move down one and right one... then keep moving down one and right one

and there you go thats your graph

Step-by-step explanation:

50T Q12 A man wants to buy bags of gravel to cover his driveway. He decides to work out the area of his driveway. 1 bag of gravel covers 14m2 3m Sketch of driveway Not to scale 3m 8m 6m What is the area of his driveway? How many bags of gravel must he buy?​

Answers

Answer:

hi amki nai patajjdkfkejd

Question for the kids orrr?

Answers

Answer:

B. 18 sq in.

Step-by-step explanation:

Surface area of the triangular pyramid excluding the base = area of the three triangular faces = 3(½ × base × height)

Where,

base = 3 inches

height = ED = 4 inches

Plug in the known values into the equation

Surface area of the triangular pyramid excluding the base = 3(½ × 3 × 4)

= 3(3 × 2)

= 3(6)

= 18 sq in.

Select the statement that best justifies the conclusion based on the given information.

l is in plane M,
x is on line l
Conclusion: x is in plane M.

a. A plane contains at least three points not all on the same line.
b. If two points lie in a plane, then the line containing them lies in that plane.
c. If a plane contains a line, it contains the points on the line.
d. Exactly one plane contains a given line and a point not on the line.

Answers

9514 1404 393

Answer:

  c. If a plane contains a line, it contains the points on the line.

Step-by-step explanation:

The only statement relating a point on a line to the plane containing the line is the one shown above.

_____

Additional comment

Identifying true statements is a reasonable strategy for many multiple-choice questions. Another strategy that can be employed is finding the one true statement that is relevant to the question being asked.

a woman has two boards one is two times as long as the other together the two boards equal 9 ft what is the length of the shortest board​

Answers

Answer:

3 feet

Step-by-step explanation:

Let x represent the length of the shortest board.

Since the other is two times as long, its length can be represented by 2x.

Create an equation to represent the situation, and solve for x:

x + 2x = 9

3x = 9

x = 3

So, the shortest board is 3 feet long

can someone help me pls

Answers

Answer:

D NO IS THE WRITE ANSWER .

Answer:

D)

Step-by-step explanation:

Other Questions
I need help with question 2 hi, please help me, please help me. So snh thi v hnh ng ca nhn dn v triu nh Hu trong vic Php nh Bc K ln th nht? Di dalam Quran itu banyak ayat yg menunjukkan ttg hukum bacaan mad iwad. Cari 5 hukum bacaan mad iwad seperti contoh tabel diatas. Find the area of a triangle with the given description. (Round your answer to one decimal place.)a triangle with sides of length 14 and 28 and included angle 20 Show a difference between managed and unmanaged development,? If X+1=2x then what the value of x? help please ITS OF TRIGONOMETRYPROVE acc 450 Anderson embezzled $20,000 from her company's account in Bank X. At year-end, she hid the shortage by making a deposit on December 31 in Bank X, drawn on Bank Y. She has not recorded the transaction on the books. This is an example of: a bus carry 53 passengar on a trif. how many passenger can 9 such carry if each dose 2 trif Name three collinear points. The diameter of a cylindrical construction pipe is 4ft. If the pipe is 22ft long, what is its volume?Use the value 3.14 for pi Hay ______________ escuelas en Guatemala donde que no tienen muchos recursos. ______________ tiles como ______________ computadoras o ______________ calculadoras son muy caras y dificiles de obtener. Hay ______________ organizaciones benficas (charitable organizations) en los Estados Unidos que donan materiales escolares a ______________ escuelas en Guatemala. Se pueden juntar (collect) cosas simples como ______________ bolgrafos, ______________ lpices o ______________ cuadernos y mandarlos a estos estudiantes que necesitan de nuestra ayuda. Ivo Company has a $10 million face value bond issue outstanding. These bonds include a call option that permits Ivo to redeem the bonds at any time for 101% of par. These bonds were issued at a premium and have a carrying value of $10,200,000. If Ivo calls the bonds, its income statement will reflect:_---.a. neither a gain nor a loss on redemption. b. a gain on redemption. c. a loss on redemption. 18. DEFG is a rectangle. Find thelength of each side. Deidre is planting tulips in her garden, and she has 44 red bulbs and 44 purple bulbs to plant in one row. What is the probability that she randomly plants the bulbs so that all 44 red bulbs are next to each other and all 44 purple bulbs are next to each other six times the sum of a number and 4 is 5 help me with this please PLEASE HELP THIS IS DUE ASAP!!!!!!!!!! Fixed costs are $3,000, variable costs are $5 per unit. The company will manufacture 100 units and chart a 50% markup. Using the cost-plus pricing method, what will the selling price be? (2 pts)Your company has fixed costs of $150,000 per year. The variable costs per unit in 2018 were $3 per unit, and 30,000 units were produced that year. Your company uses cost-based pricing and has a profit margin of $3 per unit. In 2019, production increased and your team had more experiencevariable costs went down to $2 per unit because of your teams higher skill and 65,000 units were produced that year. What is the change in selling price from 2018 to 2019? (2 pts)Fixed Costs are $500,000. Per unit costs are $75, and the proposed price is $200. How many units must be sold to break even? How many units must be sold to realize a $200,000 target return? (2 pts)Congratulations! You you just decided to become the proud owner of a new food truck offering traditional Mediterranean cuisine. Kitchen and related equipment costs are $100,000. Other fixed costs include salaries, gas for the truck, and license fees and are estimated to be about $50,000 per year. Variable costs include food and beverages estimated at $6 per platter (meat, rice, vegetable, and pita bread). Meals will be priced at $10.