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

A water company charges $20 for service and 2.75 for every 1000 gallons of water use in month construct a linear model to represent the water bill; how much would you be charged bill how much would you be charged if you use 5000 gallons of water this month

Answers

Answer:

5000

Step-by-step explanation:

⁉️⁉️

Hank has a bottle of diluted syrup that is 60% maple syrup and a bottle of pure syrup that is 100% maple syrup in his restaurant. How many ounces of pure syrup should he mix with the diluted syrup in order to make 100 ounces of 85% maple syrup? Express your answer as a decimal rounded to the nearest hundredth if necessary.

Answers

9514 1404 393

Answer:

  62.5 oz of 100%

Step-by-step explanation:

Let p represent the number of ounces of pure syrup. Then (100-p) is the number of ounces of 60% syrup. The amount of maple syrup in the desired mix is ...

  p +0.60(100 -p) = 0.85(100)

  0.40p +60 = 85 . . . . . . . . . . . simplify

  0.40p = 25 . . . . . . . . . . subtract 60

  p = 62.5 . . . . . . . . . divide by 0.4

62.5 ounces of pure syrup should be mixed with the diluted syrup to make 100 ounces of 85% maple syrup.

_____

The other 37.5 ounces will be 60% syrup.

The perimeter of a rectangle is 90. One side of the rectangle is twice the length of the other.
What is the length of the longer side?

Answers

Answer:

30

Step-by-step explanation:

p=2l+2w

p=2(2w)+2w

p=4w+2w

p=6w

p=90

90=6w

15=w

help needed right away this is timed

Answers

I think it might be x

HELP PLEASE GEOMETRY!!

Answers

Answer:

<G = <J

Step-by-step explanation:

SAS means two sides and the included angle

WE know two sides and need the included angle

<G must equal < J

Which statement IS true
about the equations -3x + 4y = 12 and +X- ~Y - 1?
The system of the equations has exactly one solution
at -8, 3).
• The system of the equations has exactly one solution at (-4, 3).
• The system of the equations has no solution; the two lines are parallel.
• The system of the equations has an infinite number of solutions represented by either equation.

Answers

Answer:

Second one(Not sure)

Step-by-step explanation:

I believe the system doesn't have an exact answer. But the line are parallel because of (3).

The following data on price () and the overall score for stereo headphones that were tested by Consumer Reports were as follows. The estimated regression equation for these data is

(y-hat) = 27.922+0.302x

Brand Price Score
Bose 180 76
Scullcandy 160 76
Koss 95 69
Phillips/O'Neill 70 58
Denon 80 50
JVC 35 26

Required:
Does the t test indicate a significant relationship between price and the overall score?

Answers

Answer:

Relationship exists between price and overall score

Step-by-step explanation:

Given the data:

Brand Price Score

Bose 180 76

Scullcandy 160 76

Koss 95 69

Phillips/O'Neill 70 58

Denon 80 50

JVC 35 26

Using the correlation Coefficient calculator ; the correlation Coefficient, R = 0.875

H0 : no relationship exists

H1 : relationship exists

Using the R Coefficient ;

The test statistic :

T = r / √(1 - r²) / (n - 2)

n = 6

The test statistic :

T = 0.875 / √(1 - 0.875²) / (4)

T =0.875 / 0.05859375

T = 0.9333

The Pvalue from test statistic :

df = n - 2 ; 6 - 2 = 4

Pvalue(0.933, 4) = 0.02246

At α = 0.05

Pvalue < α ; We reject H0 ; and conclude that relationship exists between price and overall score

Ravi bought 50kg rice at the rate it tk40 per kg and sold it at the rate of tk44 per kg. What is the amount of profit or loss?

Answers

Here is your Answer

Step-by-step explanation:

Ravi bought rice = 50kg

Rate it =40kg

Sold it at the rate = = 44kg

Answer: -34Mark me as brainlist and give me 20 thx pls

Josh spread a total of 281.4 pounds of soil onto the gardens on campus. He used 40.2 pounds on each garden. How many gardens does the campus have

Answers

Answer:7

Step-by-step explanation: I would say just divide unless there is more context.

how to bring the polynomial to the standard form p(x) x^2-2x+4) (x^2+2x+4) ​

Answers

Solution:

[tex]\rightarrow\sf((p(x) {x}^{2} + 2x + 4)( {x}^{2} + 2x + 4)) \\ = \sf {ax}^{2} + bx + c \\ = \sf(p(x) {x}^{2} {x}^{2} + p(x) {x}^{2} (2x) + p(x) {x}^{2} \times 4 + 2x \times {x}^{2} + 2x(2x) + 2x \times 4 + {4x}^{2} + 4(2x) + 4 \times 4) \\ = \sf( {x}^{4} p(x) + {2x}^{3} p(x) + {4x}^{2} p(x) + {2x}^{3} + {8x}^{2} + 16x + 16) \\ \rightarrow \large\boxed{\sf\red{{{x}^{4} p(x) + {2x}^{3} p(x) + {4x}^{2} p(x) + {2x}^{3} + {8x}^{2} + 16x + 16}}}[/tex]

Answer:

[tex]\large\boxed{\sf{\red{{x}^{4} p(x) + {2x}^{3} p(x) + {4x}^{2} p(x) + {2x}^{3} + {8x}^{2} + 16x + 16}}}[/tex]

[tex]\color{red}{==========================}[/tex]

✍︎ʜɴǫɴ

✍︎ʀʀʏɴʟʀɴɪɴɢ

✍︎ɪ ʀ

a) The weekly wages of employees of Volta gold are normally distributed about a mean of $1,250 with a standard deviation of $120. Find the probability of an employee having a weekly wage lying;

Answers

Answer:

0.7102

0.8943

0.3696

Step - by - Step Explanation :

A.) Between $1320 and $970

P(Z < 1300) - P(Z < 970)

find the Zscore of each scores and their corresponding probability uinag the standard distribution table :

P(Z < (x - μ) /σ) - P(Z < (x - μ) / σ))

P(Z < (1320 - 1250) /120) - P(Z < (970 - 1250) / 120))

P(Z < 0.5833) - P(Z < - 2.333)

0.7200 - 0.0098 = 0.7102 (Standard

=0.7102

B.)Under 1400

x = 1400

P(Z < 400)

P(Z < (x - μ) /σ)

P(Z < (1400 - 1250) /120)

P(Z < 1.25) = 0.8943

C.) Over 1290

P(Z > 1290)

P(Z < (x - μ) /σ)

P(Z > (1290 - 1250) /120 = 0.3333

P(Z > z) = 1 - P(Z < 0.3333) = P(Z < 0.3333) = 0.6304

P(Z > 0.3333) = 1 - 0.6304 = 0.3696

write your answer in simplest radical form​

Answers

Answer:

n = 8√2

Step-by-step explanation:

It's a 30-60-90 triangle, so n = 2×4√6/√3 = 8√2

30gallons 3quarts 1pint x 5

Answers

Answer:

Step-by-step explanation:

1 taza = 8 onzas líquidas = 240 mililitros. 1 pinta = 2 tazas = 16 onzas líquidas = 480 mililitros. 1 cuarto (qt) = 4 tazas = 2 pintas = 32 onzas líquidas = 950 mililitros. 1 galón = 4 cuartos = 128 onzas líquidas = 3.8 litros (L)

1 q t0.95 L2 qt1.89 L3 qt2.84 L4 qt3.79 L

HELP ASAP PLEASE!!
stroller rental at the zoo costs $14.00 per day, but members get an 8% discount. What price do members pay for stroller rental?

Answers

Answer:

$10.08

Step-by-step explanation:

100%=$14

72%= x (cross multiple)

100% × x =72% × $14

100x =1008

divide both sides by 100

100x÷100=1008÷100

x=$10.08

99 999.999 to the nearest ones

Answers

Answer:

round 99.999 to the nearest number

=

100

According to the information we can infer that the number 99,999.999, when rounded to the nearest ones, is 100,000.

What is the nearest rounding number to 99 999.999?

When rounding a number to the nearest ones, we look at the digit immediately to the right of the ones place. In this case, the digit is a 9. Since 9 is greater than or equal to 5, we round up the ones place. Therefore, the number 99,999.999 rounds to 100,000 when rounded to the nearest ones.

So, according to the information we can conclude that the number 99,999.999, when rounded to the nearest ones, is 100,000.

Learn more about rounding number in: https://brainly.com/question/29088877
#SPJ2

Ajar contains balls numbered 1 to 10. Two balls are drawn with replacement.
What is the probability that both balls are numbered 2 or less?

Answers

Answer:

1/25

Step-by-step explanation:

The number of ways that we can draw 2 balls without restriction is

10 × 10 = 100

Two balls will give you 2 or less (meaning 1) or 2×2 = 4

Four ways are possible:

2 and 2 2 and 1 1 and 2 1 and 1

4/100 = 1/25 is the probability of making this happen.

2. (03.05)
A cell phone plan has a monthly cost that is shown in the table below. What is the correct statement regarding the average rate of change during the 40-minute time of talk?
X Total min of talk time
0
10
20
30
40
Y Monthly cost of cell phone in $
14.95
15.95
16.95
17.95
18.95

Answers

Answer:

The average change rate increases by a dollar for every 10 minutes you speak.

Step-by-step explanation:

If you do not speak at all you pay the standard price.

After that, If you add 10 minutes to your talk time, you add a dollar to your payment

hope it helps c:

✔✔

PLEASE HELP

BE CORRECT BEFORE ANSWERING PLEASE

Answers

Answer:

1.an equilateral triangle is never similar to a scalene triangle.

2. because we can never map one onto the other using only dilations and rigid transformations.

This is because an equilateral triangle has all equal sides and the same angle measures, and a scalene triangle's sides are all different measures and the angles don't measure the same angle.

Give an example of a counting problem where 2^5 - 1 is the solution. Explain why you must subtract 1.

Answers

Answer:

Suppose a problem of the form:

A person can choose:

1 out of 2 pants (red or blue)

1 out of 2 shirts (red or blue)

1 out of 2 pairs of shoes (red or blue)

1 out of 2 socks (red or blue)

1 out of 2 hats (red or blue)

Ok,

We have 5 selections with 2 options each, so the number of combinations is:

2^5

Now let's add another restriction, the person can not wear all red clothes, the person must have at least one blue one.

So we removed the combination where the person selects all red clothes, which means that we removed one combination.

So now, the total number of possible combinations is the number that we got before minus one:

2^5 - 1

Notice that subtracting the one is necessary, we first use the math that we know to find the total number of combinations and then we look at the restrictions to remove the restricted combination.

Then the complete problem is:

A person can choose:

1 out of 2 pants (red or blue)

1 out of 2 shirts (red or blue)

1 out of 2 pairs of shoes (red or blue)

1 out of 2 socks (red or blue)

1 out of 2 hats (red or blue)

And the person can not wear all red clothes, the person must have at least one blue one.

How many different combinations there are?

Britany wants to read a book. In her room, she has 5 mysteries, 15 historical fictions, 12 modern fantasies, and 7 blographies. how many different choices are available ?
a. 78
b. 34
c. 32
d.39

Answers

Answer

I guess

39 different choice are available

Which describes the transformations applied in the figure above?
7 units up and 10 units to the left

5 units down and a reflection about the y-axis

5 units up and a counterclockwise rotation of 180 degrees

5 units down and a counterclockwise rotation of 90 degrees

Answers

Answer:

Step-by-step explanation:

(4). 5 units down and a counterclockwise rotation of 90 degrees

Option D is the correct answer.

We need to find which options describe the transformations applied in the given figure.

What are the transformations?

There are four common types of transformations - translation, rotation, reflection, and dilation. From the definition of the transformation, we have a rotation about any point, reflection over any line, and translation along any vector. These are rigid transformations wherein the image is congruent to its pre-image. They are also known as isometric transformations. Dilation is performed at about any point and it is non-isometric.

From the given figure we can see 5 units down and a counterclockwise rotation of 90°.

Therefore, option D is the correct answer.

To learn more about the transformation visit:

https://brainly.com/question/11709244.

#SPJ5

66. If the length of one side of a triangle 6 and the length of another side is 2, which of the following cannot be the length of the third side of the triangle?
A) 8
B) 7
C)
D) 5

Answers

Answer:

A)

Step-by-step explanation:

what is C ? 6 ?

if that is the case, then my answer is A) 8

why ? because then the other 2 sides together are just as long as this third side, and we would have just a flat line with the length of 8.

every side in a triangle must be shorter than the other two sides together.

but - fully formally such a flat line could be considered a special triangle with 2 angles of 0 degrees and one angle of 180 degrees.

that is why I am asking about the missing C answer. it could be a trick question. but if C is truly 6, then yes, A is the right answer. if C is larger than 8, then C is the right answer.

Jessy pastes stamps for 160 envelopes in 2 hours. If she pastes the stamps at the same rate, for how many envelopes can she paste stamps in 30 minutes ?

Answers

2 hours=160

1 hours=160÷2=80

30 minutes=80÷2=40

Answer:She can paste 40 stamps in 30 minutes

Consider this function rule: multiply the input by two and then subtract one to get the output. Write an equation that gives this rule in symbolic form

Answers

Answer:

f(x)=2x-1

Step-by-step explanation:

The output is f(x). The input is x.

The prompt says to multiply the input by 2, so 2x.

Then subtract 1 to get f(x).

Hope this helps!

HELP ASAP!!!!!!!PLEASE SHOW WORK!!!!!! !!!!!

Answers

Answer:

Area = 12.82 miles²

Step-by-step explanation:

Area of a triangle with two adjacent sides and the inscribed angle between these side is given by,

Area = [tex]\frac{1}{2}ab[\text{sin(C)}][/tex]

By substituting the values of sides a, b and the angle C,

Area = [tex]\frac{1}{2}(5.7\times 9.3)[\text{sin}(14^{\circ})][/tex]

        = 12.82 square miles

find the measure of the largest exterior angle​

Answers

Answer:

116 degrees

Step-by-step explanation:

To find the answer, we must know what the sum of exterior angles are on a given shape, which is 360 degrees.

So, let's put the equation up.

8x-21+4x-13+5x-11+6x+14=360

Let's add all the x variables together to simplify it. And also add the number together too.

8x+4x+6x+5x= 23x

(-21)+(-13)+(-11)+14 = -31

The equation we have is in its initial simplified version. Let's simplify it even more to solve.

23x-31=360

Add 31 to both sides.

23x=391

Divide 23 on both sides to find x.

391/23 = x

x= 17

Let's put the value x in each exterior angle.

A= 8(17)-21 = 115 degrees

B= 6(17)+14 = 116 degrees

C= 5(17)-11 = 74 degrees

D= 4(17)-13 = 55 degrees

From the work above, we know B is the largest exterior angle, which is 116 degrees.

Hope this helps!

Given the figure, which method will you most
likely use to prove that triangle ADE and
triangle ABC are similar?
A.The SSS Postulate
B.The SAS Postulate
C.The ASA Postulate
D.The AA Postulate

Answers

Answer:
B. The SAS Postulate

Explanation:
Both triangles share angle A, and their sides can be proven similar because the ratios of 4:8 and 5:10.

Answer:

B. The SAS Postulate

Step-by-step explanation:

In the given figure, we are shown two triangles, [tex]\triangle ADE[/tex] and [tex]\triangle ABC[/tex].

Since triangle ADE is inscribed in triangle ABC, both triangles must share angle [tex]A[/tex]. Furthermore, let's take a look at the two legs of each triangle, if we say that their respective bases are DE and BC.

Compare the corresponding legs of each triangle with proportions:

[tex]\frac{AC}{AE}=\frac{10}{5}=2,\\\\\frac{AB}{AD}=\frac{8}{4}=2,\\\\\overline{AC}:\overline{AE}=\overline{AB}:\overline{AD}[/tex]

Since two corresponding legs/sides of triangle are in a constant proportion, the triangles must be similar from the SAS (Side-Angle-Side) Postulate.

Susie is paying $577.02 every month for her $150,000 mortgage. If this is a 30 year mortgage, how much interest will she pay over the 30 years of payments?

Answers

Step-by-step explanation:

versus acacia medina

That’s how much interest she’ll pay

Today only, a suit is being sold at a 36% discount. The sale price is $272.

What was the price yesterday?
=$___

Answers

Answer:$425

Step-by-step explanation:

272/(100-36)*100

You first calculate what the price is relative to the old price. 100 minus 36 is 64%. By dividing with 64 you get 1% of the old price. Multiply it then with 100 to get the price yesterday

A football is kicked upward from a height of 6 feet with an initial speed of 70 feet per second. Use the formula to find the balls height 3 seconds after it was kicked

Answers

70 ft per sec going upward 3 sec from 6 ft high should reach 216 ft, but unfortunately gravity is pulling it and at some point it starts to go backward (at 2.176 second), so to compensate the upward slowing down and distance dropped, use -32.176 times 3 square times 1/2 = -144.792 which is the natural drop distance if the football is released mid air without a initial speed after 3 seconds. 216 - 144.792 = 71.208 ft high.
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