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


I need you guy’s help answer thanks so much

Answers

I believe it’s C, hopefully this helps !!

(07.04 MC)
Jim is designing a seesaw for a children's park. The seesaw should make an angle of 30' with the ground, and the maximum height
to which it should rise is 2 meters, as shown below:
1
2 meters
30
What is the maximum length of the seesaw? (6 points)
Select one:
a. 3.00 meters
b. 3.5 meter
C. 4,00 meters
d 4.5 meters

Answers

Answer: 4.00

Explanation

To find the maximum value for x, the hypotenuse, with a given of an angle 30° and a height of 2 m, we can see that 30° is directly opposite the side of 2 m, in which case we may use the sin of 30° to find the hypotenuse.

Remember that the sin = opposite/hypotenuse, so sin30° = 2/x

1) sin30 = 2/x
2) 1/2 = 2/x
3) x = 4

Hope this helps :)

The maximum length of the seesaw is option c  4.00 meters.

What is a right-angled triangle?

A right-angled triangle is one in which one of the angles is equal to 90 degrees. A 90 degree angle is called a right angle, which is why a triangle made up of right angle is termed a right angled triangle.

What are hypotenuse, height of a right-angled triangle?

A right-angled triangle has three sides- hypotenuse, base and height. Hypotenuse is the longest and also the opposite side of the right angle of the triangle, base and height of a right triangle are always the sides adjacent to the right angle.

How to measure the hypotenuse of a right-angled triangle?

The formula for measuring the hypotenuse is,

Height / Hypotenuse = Sinθ , where θ is the angle opposite to the height of the triangle.

In the given question, the seesaw should make an angle of 30° with the ground and the maximum height it should rise is 2 meters so the height here is 2 meters. So the seesaw will make a right angled triangle.

Height = 2 meters, θ = 30°,

Now using the formula,

2 / Hypotenuse = Sin30°

Rearranging we get,

Hypotenuse = 2 / Sin30°

The value of Sin30° is 1/2 and putting the value we get,

Hypotenuse = 2 / (1/2)

                     = 2 × 2

                     = 4 meters.

Therefore, the maximum length of the seesaw (that is the hypotenuse ) is 4 meters.

To learn more about right-angled triangles and finding sides of it click here-brainly.com/question/10331046

#SPJ2

(Use Pascal's triangle to expand each binomial. (x – 5y)^5

Answers

The n-th row in Pascal's triangle tells you the coefficients of terms in the expansion of (a + b). Starting with n = 0,

1

1 … 1

1 … 2 … 1

1 … 3 … 3 … 1

1 … 4 … 6 … 4 … 1

1 … 5 … 10 … 10 … 5 … 1

In more concrete terms, this translates to

(x - 5y)⁵ = 1 x ⁵ (-5y)⁰ + 5 x ⁴ (-5y)¹ + 10 x ³ (-5y)² + 10 x ² (-5y)³ + 5 x ¹ (-5y)⁴ + 1 x ⁰ (-5y)⁵

Simplify:

(x - 5y)⁵ = x ⁵ - 25xy + 250x ³y ² - 1250x ²y ³ + 3125xy ⁴ - 3125y

Help I have a time limit

Answers

Answer:

I think its C:37

Step-by-step explanation:

And if im wrong sorry :/

find the area of the shaded region

Answers

Answer:

22 cm²

Step-by-step explanation:

Shaded area is the difference of the bigger circle and two smaller ones:

A = π(3²) - 2π(1²) = 7π = 7*3.14 ≈ 22 cm²

The figure below is a net for a right rectangular prism. Its surface area is 104 ft2 and
the area of some of the faces are filled in below. Find the area of the missing faces,
and the missing dimension.

Answers

Answer:

12+12+10+10=44

104-44=60

60÷2=30

30 is the surface area of A

30÷6=5

5 is a missing dimention

A boat travels 400 kilometers in 9.6 hours (with a constant speed). How much time will it take to travel 138 kilometers? (round to the nearest tenth of an hour)

Answers

Step-by-step explanation:

here's the answer to your question

Find the measure of the missing angles.

Answers

Answer:

b = 53

c = 53

Step-by-step explanation:

Alright so we already know that b and c are going to have the same angle measures. We can find b by subtracting 180 degrees to 127. Why you may ask? Its because when b and 127 are added together its obvious that it creates a straight line (supplementary angle). This means that two angles will sum up to 180 degrees. We can create an easy equation and solve for b.

127 + b = 180

b = 53 and c = 53

Best of Luck!

1/6+4/18 in simplest form

Answers

Answer:

7/18

Step-by-step explanation:

1/6 x 3 = 3/18

3/18 + 4/18 = 7/18

Answer:

7/18

Step-by-step explanation:

Make the denominators the same!

You can turn 1/6 into 3/18 by multiplying the numerator and denominator by 3. Then you add the numerators of 3/18 and 4/18 together to get 7/18.

It can't be simplified any further :)

Help me please and thank you

Answers

Answer:

D. 3

Step-by-step explanation:

Answer:

3

step by step explanitation

What are the zeros of f(x) = x^2 - x - 12?

A. x= -4 and x= 3
B. x=-3 and x = 4
C. x=-2 and x = 6
D. x=-6 and x = 2

Answers

Answer:

B. x = -3 and x = 4

General Formulas and Concepts:

Algebra I

Terms/CoefficientsFactoringSolving quadratics

Step-by-step explanation:

Step 1: Define

Identify

f(x) = x² - x - 12

Step 2: Solve for x

Factor:                                                                                                               (x - 4)(x + 3) = 0Solve:                                                                                                                 x = 4, -3

What is the product of (2x - 5)(2x + 5)2 ?

Answers

8x^2-50 is your answer hopes this helps

There is a language with 12 distinct letters. How many words that are less than four letters long can possibly be formed? (Assume any combination of letters is valid and letters can be repeated). Can you help me out with this one?

Answers

Answer:

1884

Step-by-step explanation:

1)If you hear the condition "less than four letters" it means that each word can consist of 3,2 or 1 letter. Firstly, consider the easiest situation with the word from one letter. There are 12 letters, so there are 12 words from one letter.

Then the words from two letters. The first letter of such a word can be chosen in 12 means(because 12 letters are available), then the second letter can be chosen in 12 means too. 12*12=144 words with 2 letters. (Multiplying, not adding, because each two words form one combination).

Then for the words from three letters, use the same rule, 12 means for the first letter, 12 means for the second letter, 12 means for the third letter. 12*12*12=1728 words.

Having particular words from 1,2,3 letters add them to get total quantity of words: 12+144+1728=1884words,that is the answer.

PLEASE HELP FAST!! WILL GIVE FIRST PERSON THAT RESPONDS A HIGH RATING AND POINTS!

Answers

Answer:

Step-by-step explanation:

3

Write an equation for the following: y varies directly with x. Find K
when x=4 and y=5.

Answers

Answer:

4/5

Step-by-step explanation:

y varies as x

y=kx

k=x/y

find area and perimeter of shaded area and the perimeter is not 96

Answers

Answer:

picture not clear what is the length

Use the Pythagorean Theorem to find the length of the indicated side of the following right triangle. (NOTE: The square-like symbol indicates a 90-degree angle.)

Answers

Pythagorean Theorem: a^2 + b^2 = c^2

a = 5

b = ?

c = [tex]\sqrt{61}[/tex]

5^2 + b^2 = ([tex]\sqrt{61}[/tex])^2

25 + b^2 = 61

b^2 = 36

b = 6

Hope this helps!

Two lines, A and B, are represented by equations given below:

Line A: y = x − 2
Line B: y = 3x + 4

Which of the following shows the solution to the system of equations and explains why?

(−3, −5), because the point does not lie on any axis
(−3, −5), because the point satisfies both equations
(−4, −8), because the point satisfies one of the equations
(−4, −8), because the point lies between the two axes

Answers

9514 1404 393

Answer:

  (b)  (−3, −5), because the point satisfies both equations

Step-by-step explanation:

Any solution to a system of two equations must satisfy both equations. The only reasonable explanation of "why" is the one associated with the answer shown above.

Intelligence quotients (IQs) on the Stanford-Binet intelligence test are normally distributed with a mean of 100 and a standard deviation of 16.

Use the 68-95-99.7

Rule to find the percentage of people with IQs between 84 and 116.

Answers

Answer:

Approximately 68% of people have IQs between 84 and 116.

Step-by-step explanation:

The Empirical Rule states that, for a normally distributed random variable:

Approximately 68% of the measures are within 1 standard deviation of the mean.

Approximately 95% of the measures are within 2 standard deviations of the mean.

Approximately 99.7% of the measures are within 3 standard deviations of the mean.

In this problem, we have that:

Mean of 100, standard deviation of 16.

Percentage of people with IQs between 84 and 116.

84 = 100 - 16

116 = 100 + 16

So within 1 standard deviation of the mean, which, by the Empirical Rule, is approximately 68%.

Hello people can you please help me on this

Answers

Step-by-step explanation:

Step 1:  Complete the first equation

0.1 is a tenth, therefore if we have 15.3 then we have 153 tenths.

Step 2:  Complete the second equation

15.3 / 3 = 5.1  

0.1 is a tenth, therefore if we have 5.1 then we have 51 tenths.  

Step 3:  Complete the third equation

15.3 / 3 = 5.1

A 10-item statistics quiz was given to 30 students. The table below gives the scores received along with the corresponding frequencies.

A 2-column table with 6 rows. Column 1 is labeled score with entries 5, 6, 7, 8, 9, 10. Column 2 is labeled Frequency with entries 1, 2, 5, 5, 7, 10.

What was the mean score on the quiz?

7.5
8.5
9
10

Answers

Answer:

Should be (B).

8.5

ED2021

Answer: B

Step-by-step explanation:

expresión algebraica el cuadrado del cubo de la suma de dos números​

Answers

Answer:

El cuadrado de la suma de dos números es igual a (a + b) ² = a² + 2ab + b²Un producto notable: es una expresión matemática que conocemos ya el resultado, a pesar de la operación ser sencilla tenemos

Nine Increased by the product of a number and 4 is greater than or equal to -15

Use the variable y for the unknown number

Answers

Answer:

9+4y ≥ -15

y ≥ -6

Step-by-step explanation:

Nine Increased by the product of a number

9+4y

is greater than or equal to -15

9+4y ≥ -15

Subtract 9 from each side

9-9+4y ≥ -15-9

4y ≥ -24

Divide by 4

4y/4 ≥ -24/4

y ≥ -6

A person's email for one day contained a total of 78 messages. The number of spam
messages was two less than four times the number of other messages. How many of
the email messages were spam?

Answers

Answer:

62 of the email messages were spam

Step-by-step explanation:

Let the number of spam and other messages be s and o respectively.

Total number of messages= 78

s +o= 78 -----(1)

s= 4o -2 -----(2)

Substitute (2) into (1):

4o -2 +o= 78

Simplify:

5o -2= 78

+2 on both sides:

5o= 78 +2

5o= 80

Divide both sides by 5:

o= 80 ÷5

o= 16

Since s +o= 78, s= 78 -o.

s= 78 -16

s= 62

what is 127/14 simplified?

Answers

It’s would be 9 1/4

Answer:

9 1/14

Step-by-step explanation:

127 ÷14

127 divided by 14 equals

9 with a remainder of 1

Samantha bought m candies at the store. There are n candies in a pound, and each pound costs c dollars. Write an expression for how much Samantha paid.

Answers

Answer:

total = m/n * c

m/n gives u the number of pounds u have bought, multplied by the cost of the candies per pound gives u the total amount of money she paid

Find X please

15 POINTS WORTH

Answers

Answer and Step-by-step explanation:

To find x, we must find the interior angles first, then we can find the value of x.

To find the interior angle, we need to use the exterior angle. We subtract the exterior angle from 180 to get the interior angle.

180 - 157 = 23

180 - 78 = 102

Now we need to find the last interior angle.

180 - 23 - 102 = 55

Now to find x.

180 - 55 = 125

x = 125

#teamtrees #PAW (Plant And Water) #ALM (All Lives Matter)

I hope this helps!

Answer:

the value of x is 124

Step-by-step explanation:

A study was done to determine the average number of homes that a homeowner owns in his or her lifetime. For the 50 homeowners surveyed, the sample average was 5.1 and the sample standard deviation was 3.8. Calculate the 95% confidence interval for the true average number of homes that a person owns in his or her lifetime.

Answers

Answer:

The 95% confidence interval for the true average number of homes that a person owns in his or her lifetime is (4,6.2).

Step-by-step explanation:

We have the standard deviation for the sample, which means that the t-distribution is used to solve this question.

The first step to solve this problem is finding how many degrees of freedom,which is the sample size subtracted by 1. So

df = 50 - 1 = 49

95% confidence interval

Now, we have to find a value of T, which is found looking at the t table, with 49 degrees of freedom(y-axis) and a confidence level of [tex]1 - \frac{1 - 0.95}{2} = 0.975[/tex]. So we have T = 2.0096

The margin of error is:

[tex]M = T\frac{s}{\sqrt{n}} = 2.0096\frac{3.8}{\sqrt{50}} = 1.1[/tex]

In which s is the standard deviation of the sample and n is the size of the sample.

The lower end of the interval is the sample mean subtracted by M. So it is 5.1 - 1.1 = 4

The upper end of the interval is the sample mean added to M. So it is 5.1 + 1.1 = 6.2.

The 95% confidence interval for the true average number of homes that a person owns in his or her lifetime is (4,6.2).

Muka saved 476.60. He gave Kelvin 429.10 and bought T-Shirt for 432.05, how much money he has left over​

Answers

Definitely a typo in there he’d be in debt

The number formed by adding 1 to the greatest 8 – digit number is?

Answers

Answer:

the answer would be 100,000,000

Greatest 8 Digit Number: 99,999,999

Adding 1 = 99999999+1

= 100,000,000

Must click thanks and mark brainliest

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