Answer: a. Dynamic forecasting
Explanation:
Dynamic forecasting has to do with when the forecasted value or the predicted value of the dependent variable that us lagged in a research is used rather than using the actual value.
The dynamic forecasting technique fits situations where more recent events carry greater influence.
Common problems being faced by internet users with having an online business
Answer:
businesses are facing issues for a number of reasons. one of which is that websites may crash with a large amount of users on a website at any given period.
Explanation:
How pay for workers is determined?
Find the present value of $9,000 payable at the end of 4 years, if money may be invested at 4% with interest compounded continuously.
Answer:
the present value is $7,669.294
Explanation:
The computation of the present value is shown below:
As we know that
A = Present value × e^(rate × time period)
$9,000 = Present value × e^(0.04 × 4)
Present value = $9,000 ÷ e^0.16
= $9,000 ÷ 1.1735
= $7,669.294
Hence, the present value is $7,669.294
We simply applied the above formula so that the correct value could come
And, the same is to be considered
If operating income is $500,000 and total operating revenues are $10,000,000, the correct operating margin is:__________A. 5%B. 20%C. 2%D. 50%
Answer:
the correct operating margin is 5 %
Explanation:
Operating margin is the relationship between operating income and operating revenues.
This relationship is expressed as follows :
Operating margin = Operating income / Operating revenues × 100
= $500,000 / $10,000,000 × 100
= 5 %
On December 31, 2016, Hamilton Inc. sold a used industrial crane for $1,060,000 cash. The original cost of the crane was $5.30 million and its accumulated depreciation equaled $4.35 million on December 31, 2016. What is the gain or loss from the December 31, 2016 equipment sale? a) $110,000 gain b) $950,000 gain c) $950,000 loss d) $110,000 loss
Answer: a) $110,000 gain
Explanation:
Book value as on date of sale=Cost - Accumulated Depreciation
=$5,300,000 - $4,350,000
=$950,000
Gain on sales =1,060,000-950,000
=$110,000.
A gain because sales proceeds was greater than the Book value;
On December 31, 2016, Hamilton Inc recorded a gain of $110,000 gain
If Bob pays $695.20 for principal and interest every month for 30 years on his $110,000 loan, how much interest will he pay over the life of the loan
Answer:
$140,272
Explanation:
Calculation for how much interest will he pay over the life of the loan
First step is to calculate the Total payment
Total payment= (695.20 x 12 months x 30 years Total payment= $250,272
Last step is to calculate the interest amount Using this formula
Interest=Total payment-Principal
Let plug in the formula
Interest= $250,272- $110,000
Interest=$140,272
Therefore the amount of interest he will pay over the life of the loan is $140,272
Is mortgage a long term liability, capital, current assets , fixed assets, current liability?
Answer:
long-term liability or fixed asset
Explanation:
they're due in over a year's time
The income statement of Venden Co. for the month of July shows net income of $4,000 based on Service Revenue $8,700, Salaries and Wages Expense $2,500, Supplies Expense $1,700, and Utilities Expense $500. In reviewing the statement, you discover the following.
Answer:
The correct net income is $3,500.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
The income statement of Venden Co. for the month of July shows net income of $4,000 based on Service Revenue $8,700, Salaries and Wages Expense $2,500, Supplies Expense $1,700, and Utilities Expense $500. In reviewing the statement, you discover the following.
1. Insurance expired during July of $700 was omitted.
2. Supplies expense includes $250 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $300 was omitted.
4. Accrued but unpaid salaries and wages at July 31 of $400 were not included.
5. Services provided but unrecorded totaled $650.
Instruction: Prepare a correct income statement for July 2017.
Also Note: See the attached excel file for the correct income statement.
In the attached excel file, the following workings are used:
Workings:
w.1. Supplies expense = Total supplies expense already charged – Supplies on hand at July 31 = $1,700 - $250 = $1,450
w.2. Salaries and wages expense = Salaries and wages expense already charged + Accrued but unpaid Salaries and wages expense = $2,500 + $400 = $2,900
w.3. Service revenue = Service revenue already accounted for + Services provided but unrecorded = $8,700 + $650 = $9,350
Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand operations. The first stage was
completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased by
paying $370,000 immediately and signing a noninterest-bearing note requiring the company to pay $770,000 on March 28, 2023. An
interest rate of 8% properly reflects the time value of money for this type of loan agreement. Tide search, insurance, and other closing
costs totaling $37.000 were paid at closing
At the end of April, the old building was demolished at a cost of $87,000, and an additional $67.000 was paid to clear and grade the
land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows
(FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
May 1
July 30
September 1
October 1
$3,750,000
2,350.000
1,920,000
2,820.000
San Antonio borrowed $6,100,000 at 8% on May 1 to help finance construction. This loan, plus interest, will be paid in 2022. The
company also had a $6,950,000, 8% long-term note payable outstanding throughout 2021
In November, the company purchased 10 identical pieces of equipment and office furniture and fortures for a lump-sum price of
$770 000. The fair values of the equipment and the fumiture and fixtures were $522,000 and $348,000, respectively. In December, San
Antonio paid a contractor $370,000 for the construction of parking lots and for landscaping.
Required:
1. Determine the initial values of the various assets that San Antonio acquired or constructed during 2021. The company uses the
specific interest method to determine the amount of interest capitalized on the building construction. (Hint: Expenditures on March 28
and April 30 to acquire land on which to construct the building are included as part of accumulated expenditures for determining the
amount of interest capitalized on the building. This means the interest capitalization period begins on March 28.)
2. How much interest expense will San Antonio report in its 2021 income statement?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine the initial values of the variou assets that San Antonio acquired or constructed during 2021. The company uses
the specific interest method to determine the amount of interest capitalized on the building construction. (Hint: Expenditures
on March 28 and April 30 to acquire land on which to construct the building are included as part of accumulated expenditures
for determining the amount of interest capitalized on the building. This means the interest capitalization period begins on
March 28.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
Answer:
1) assets basis:
land = $1,221,151
equipment = $462,000
furniture and fixtures = $308,000
parking lots and landscaping = $370,000
building = $11,241,600
2) interest expense:
interest on notes payable issued to buy land = $52,812
interest expense on other notes payable = $479,733
total = $532,545
Explanation:
the basis of the land (not depreciable):
$370,000 paid in cashPV of notes payable = $770,000 / 1.08² = $660,151closing costs = $37,000demolition of existing structures = $87,000land clearing and grading = $67,000total = $1,221,151Demolition costs as well as land grading and clearing add to the basis of the land, they are not included as part of construction costs. Therefore, they cannot be capitalized and added to the building's basis. The land is one asset and the building is a separate one, you cannot mix them. Only construction costs incurred when building the building (I don't know how else to say it) can be considered as accumulated expenditures for interest capitalization. The same applies to land improvements, they cannot be included in the construction's accumulated expenditures, they are separate assets.
interest expense on notes payable = $660,151 x 8% = $52,812
basis of equipment, furniture and fixtures (depreciable assets):
equipment = ($522 / $870) x $770,000 = $462,000furniture and fixtures = ($348 / $870) x $770,000 = $308,000parking lots and landscaping (depreciable land improvements):
$370,000total building construction expense during 2021:
May 1 : $3,750,000 July 30: $2,350.000 September 1: $1,920,000 October 1 : $2,820.000total = $10,840,000weighted construction expenditures 2021:
May 1 : $3,750,000 x 8/12 = $2,500,000July 30: $2,350.000 x 6/12 = $1,175,000September 1: $1,920,000 x 4/12 = $640,000October 1 : $2,820.000 x 3/12 = $705,000total = $5,020,000capitalized interests = $5,020,000 x 8% = $401,600
basis of building:
total construction expenses = $10,840,000capitalized interests = $401,600total = $11,241,600interest expense on other notes payable = ($6,100,000 x 8% x 8/12) + ($6,950,000 x 8%) - $401,600 = $479,733.33 ≈ $479,733
At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $16,000. Instructions Journalize and post the adjusting entry for bad debts at December 31, 2020. Journalize and post to the allowance account the following events and transactions in the year 2020. March 1, a $1,900 customer balance originating in 2020 is judged uncollectible. May 1, a check for $1,900 is received from the customer whose account was written off as uncollectible on March 1. Journalize the adjusting entry for bad debts on December 31, 2020. Assume that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $2,000, and the aging schedule indicates that total estimated bad debts will be $38,300.
Answer:
a. Journal Entry
Date Account Titles Debit Credit
Dec 31 Bad Debts Expense $16,000
Allowance for Doubtful Accounts $16,000
To record bad debts expense.
b. Journal Entries:
Date Account Titles Debit Credit
Mar 1 Allowance for
Doubtful Accounts $1,900
Accounts Receivable $1,900
To record the write-off of uncollectible account.
Date Account Titles Debit Credit
May 1 Accounts Receivable $1,900
Allowance for Doubtful Accounts $1,900
To record the reversal of the March 1, 2020 entries.
Date Account Titles Debit Credit
May 1 Cash $1,900
Accounts Receivable $1,900
To record the receipt of check from the customer.
c. Journal Entries:
Date Account Titles Debit Credit
Dec. 31 Bad Debts Expense $40,300
Allowance for Doubtful Accounts $40,300
To record bad debts expense and bring the Allowance for Doubtful Accounts to a credit balance of $38,300.
Explanation:
a) Adjusting journal entries are necessary to ensure that the accounts are reported in accordance with the accrual concept.
Why is it important to include a person's title when developing a reference sheet?
Answer with Explanation:
It is important to include a person's job title when developing a reference sheet because it shows the person's position and level of experience in his field. Reference sheets are meant to help you get connections that will boost your probability of getting hired. The better the job titles of the people you've listed on your reference list, the more confidence you'll have in the hiring process. The Human Resource wants to talk to people who have the credibility to attest to your past performances and credentials.
It is important to list those people whom you have worked with in a similar context. For example, listing your supervisor on your reference sheet rather than listing someone who is not related to you at work.
Reference sheets are documents that specify the people who can vouch for our character. It is important to include a person's title when developing a reference sheet because it tells the hiring manager that we have relationships with people who are outstanding in a field.
If they can attest to our suitability, then we are likely trustworthy.
Hiring managers might want us to present reference sheets that indicate our referees.It is important to attach titles to the names of these referees because it tells the hirer that responsible members of society are willing to attest to our conduct. This will make the employer more confident in us.Learn more here:
https://brainly.com/question/17706833
Jillian has just started her first job with a $45,000 salary at a company with a 401(k) plan that has a 100% match up to 3% gross salary. She figures she can afford to save $3,000/yr out of her income for her retirement. What should Jillian ideally do?
a. Contribute 1650 in a Roth IRA, and 1350 In her company’s 401(k) plan
b. Contribute 3,000 in her company’s 401 (k) plan
c. Contribute 2,00 in a Roth IRA
d. Contribute 1350 in a Roth IRA, and 1650 In her company’s 401(k) plan
Answer:
Jillian
What Jillian should ideally do is:
a. Contribute 1650 in a Roth IRA, and 1350 In her company’s 401(k) plan.
Explanation:
a) Data and Calculations:
Salary = $45,000
401(k) = 3% of $45,000 = $1,350
Employer's match to the 401(k) = $1,350 (100%)
Savings affordable = $3,000
b) Jillian can contribute to Roth IRA and her company 401(k) which her company will also match 100%. Her contributions to both funds are within the allowed limits. In 2020, the allowed limit of 401(k) plan is $19,500 while that of Roth IRA is $6,000.
Shelly’s Gardening Center is deciding when to air their commercials on television. The marketing team feels it would be best to run the ads on weekend mornings anywhere from 9 am to noon. The timeframe the team is recommending is an example of a(n):________
a. first-run syndication.
b. audience share.
c. daypart.
d. avail.
Answer:
c. daypart
Explanation:
Daypart corresponds to a marketing strategy used when you want to reach the target audience of a certain campaign or advertising through the usage data of the medium where the ad is served. As shown in the scenario above, that the marketing team decides to run the ads on weekend mornings, from 9 am to noon, because through data and prior information, the marketing team found that these periods and times are those who would have a greater participation and interaction of the target audience with the television commercial, and thus the objectives and goals of marketing would have the probability of being more widespread and effective.
Suppose the demand for roses increases from 500 to 600 stems when income rises from $10,000 to $20,000. Income elasticity for roses is:__________
Answer:
Demand Income % Δ in Demand % Δ in Income Elasticity
500 10000
600 20000 18.18% 66.67% 0.2727
The formula for midpoint elasticity = ((600-500)/((600+500)/2))/((20000-10000)/((20000+10000)/2)) = 0.2727
As the elasticity value is 0.2727 is less than 1, the good is slightly elastic and the good is normal good as the demand increases with the increase in income.
What was the economy like before the corona virus??
Please help!!
5-8 lines
Answer:
BEFORE the virus, the economy was running (not perfectly) but smoothly. You could go to school without the worry of a death sentence. Marriages were more common before the virus. Concerts were available. You could go out and do things. Bears didn't have to leave the mountains for food. Businesses were running easier.
Explanation:
I hope this helps.
As a vice president of a financial services company, you serve many clients, and they sometimes ask your company to contribute to their favorite charities. You recently received a letter from Elliana Larios asking for a substantial contribution to the National Court Appointed Special Advocate (CASA) Association. On visits to your office, she has told you about its programs to recruit, train, and support volunteers in their work with abused children. She herself is active in your town as a CASA volunteer, helping neglected children find safe, permanent homes. She told you that children with CASA volunteers are more likely to be adopted and are less likely to reenter the child welfare system.
You have a soft spot in your heart for children and especially for those who are mistreated. You sincerely want to support CASA and its good work. But times are tough, and you can't be as generous as you have been in the past. Ms. Larios wrote a special letter to you asking you to become a Key contributor, with a pledge of $2,000
Your Task Write a refusal letter that maintains good relations with your client. Address it to Ms. Elliana Larios, 8569 East 39th Street, Phoenix, AZ 85730.
As a vice president of a financial services company, you serve many clients, and they sometimes ask your company to contribute to their favorite charities. You recently received a letter from Elliana Larios asking for a substantial contribution to the National Court Appointed Special Advocate (CASA) Association. On visits to your office, she has told you about its programs to recruit, train, and support volunteers in their work with abused children. She herself is active in your town as a CASA volunteer, helping neglected children find safe, permanent homes. She told you that children with CASA volunteers are more likely to be adopted and are less likely to reenter the child welfare system.
You have a soft spot in your heart for children and especially for those who are mistreated. You sincerely want to support CASA and its good work. But times are tough, and you can't be as generous as you have been in the past. Ms. Larios wrote a special letter to you asking you to become a Key contributor, with a pledge of $2,000
Your Task Write a refusal letter that maintains good relations with your client. Address it to Ms. Elliana Larios, 8569 East 39th Street, Phoenix, AZ 85730.
_____ set their own goals and inspect their own work, often hire their own replacements and prepare their own budgets.a) Virtual teams
b) Enlarged teams
c) Socio-technical teams
d) Self-managed teams
Answer:
HEY PLS DON'T JOIN THE ZOOM CALL OF A PERSON WHO'S ID IS 825 338 1513 (I'M NOT SAYING THE PASSWORD) HE IS A CHILD PREDATOR AND A PERV. HE HAS LOTS OF ACCOUNTS ON BRAINLY BUT HIS ZOOM NAME IS MYSTERIOUS MEN.. HE ASKS FOR GIRLS TO SHOW THEIR BODIES AND -------- PLEASE REPORT HIM IF YOU SEE A QUESTION LIKE THAT. WE NEED TO TAKE HIM DOWN!!! PLS COPY AND PASTE THIS TO OTHER COMMENT SECTIONS!!
Explanation:
HEY PLS DON'T JOIN THE ZOOM CALL OF A PERSON WHO'S ID IS 825 338 1513 (I'M NOT SAYING THE PASSWORD) HE IS A CHILD PREDATOR AND A PERV. HE HAS LOTS OF ACCOUNTS ON BRAINLY BUT HIS ZOOM NAME IS MYSTERIOUS MEN.. HE ASKS FOR GIRLS TO SHOW THEIR BODIES AND -------- PLEASE REPORT HIM IF YOU SEE A QUESTION LIKE THAT. WE NEED TO TAKE HIM DOWN!!! PLS COPY AND PASTE THIS TO OTHER COMMENT SECTIONS!!
who wants to make a research paper here? i need help guys.
Answer:
I don't want to make sorry
Explain how Robert might perceive the office assistant's reaction.
Answer:
we need a full question to this to answer
Explanation:
what is your view about credit cards in America? Do you think it serves the best interest of Americans or not and why?
The profit function for sales of two models of television sets at a chain discount store is given by where x is the number of sales per week of model A, and y is the number of sales per week of model B. Find and interpret the result.
Answer:
The correct option is B) Px(10, 15) = 80
At a sales level of 10 units of model A and 15 units of model B, increasing sales of model A by one unit and holding sales of model B at 15 units will increase profit by approximately $80.
Explanation:
Note: This question is note complete. The complete question is therefore provided before answering the question as follows:
The profit function for sales of two models of television sets at a chain discount store is given by P(x, y) = 140x + 160y - 6x^2 + 4xy - 8y^2 - 500, where x is the number of sales per week of model A, and y is the number of sales per week of model B. Find Px(10, 15) and interpret the result.
A) Px(10, 15) = 120
At a sales level of 10 units of model A and 15 units of model B, increasing sales of model A by
one unit and holding sales of model B at 15 units will increase profit by approximately $120
B) Px(10, 15) = 80
At a sales level of 10 units of model A and 15 units of model B, increasing sales of model A by one unit and holding sales of model B at 15 units will increase profit by approximately $80.
C) Px(10, 15) = 140
At a sales level of 10 units of model A and 15 units of model B, increasing sales of model A by one unit and holding sales of model B at 15 units will increase profit by approximately $140
D) Px(10, 15) = 60
At a sales level of 10 units of model A and 15 units of model B, increasing sales of model A by one unit and holding sales of model B at 15 units will increase profit by approximately $60
The explanation to the answer is now given as follows:
Given;
P(x, y) = 140x + 160y - 6x^2 + 4xy - 8y^2 - 500 ........................ (1)
Taking partial differentiation of equation (1) with respect to x, we have:
Px(x, y) = 140 - 12x + 4y ...................... (2)
Since we are given Px(10, 15), it implies we substitutes for x = 10 and y = 15 into equation (2) and estimate as follows:
Px(10, 15) = 140 - (12 * 10) + (4 * 15)
Px(10, 15) = 140 - 120 + 60
Px(10, 15) = 80
Therefore, the correct option is B) Px(10, 15) = 80
At a sales level of 10 units of model A and 15 units of model B, increasing sales of model A by one unit and holding sales of model B at 15 units will increase profit by approximately $80.
Alison was just hired around the Grand Stores. She soon learned that all new hires in the company are required to go through mandatory health and drug testing. She consulted her superiors and found that this was not a breach of her privacy right. Which reason for such testing would NOT qualify as a breach of Alisons privacy rights?
A. Pre-employment condition
B. Vacation allotment
C. Fitness for duty
D. Personality assessment
Answer:
A. Pre-employment condition
Explanation:
The answer is A. because if the testing is a requirement for getting the job then you know beforehand. You're aware of this requirement before they employ you so it's not breaching your privacy rights.
Answer:
a
Explanation:
The company can allow whoever they want into the company and it is their choice to test their employees for drugs.
A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because:_______
a. price and marginal cost is higher than marginal revenue.
b. marginal cost is equal to zero.
c. price is lower than marginal cost.
d. average cost and marginal cost are equal.
Answer:
D
Explanation:
A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because average cost and marginal cost are equal.
Answer:
The correct choice is - Price is equal to the Marginal Cost.
Explanation:
Socially desirable price refers to the point on the graph where the demand (D) stands equal to or intersects the marginal cost (MC). That is MC = D.
The challenge with setting prices like this is that the business in arriving at the price of its product(s) and or service(s) has not taken into consideration the fixed cost to the business. To breakeven, the owner of a business must know its Average Total Cost (which takes into consideration both marginal and fixed costs) and set its prices equal to same. To make a profit however the business must set its prices above the Average Total Cost.
Recall that ATC = MC + F/Q where
ATC = Average Total Cost
MC = Marginal Cost
F = Fixed Cost
Q = Quantity of goods produced
D = Quantity of goods demanded
Cheers
Assume that the risk-free rate is 2.5% and the expected return on the market is 12%. What is the required rate of return on a stock with a beta of 1.1?
Answer:
12.95%
Explanation:
Given:
Risk-free rate (rRF) = 2.5%
Expected return on the market (rm) = 12%
Stock beta (bs) = 1.1
(rRF) + (rm - rRF)(bs)
0.025 + (0.12 - 0.025) (1.1)
0.025 + 0.095 (1.1)
0.025 + 0.1045
0.1295
12.95%
Cash flows from collections on credit sales are usually reported in the statement of cash flows as part of:
Operating activities.
Financing activities.
Investing activities.
Noncash activities.
This is not reported in the statement of cash flows.
Answer:
Operating activities.
Explanation:
Operating activities are events and transactions that generate income for a business. They are the normal business activities of producing or purchasing merchandise, selling goods, and services to customers. They also include business administration and selling expenses.
Examples of incomes from operating activities are
1. Cash sales
2. Interest received
3. Lawsuit settlements receipts
4. Cash dividends received
5. Collection from accounts receivables
The BRS Corporation makes collections on sales according to the following schedule:
25% in month of sale
71% in month following sale
4% in second month following sale
The following sales have been budgeted:
Sales
April $ 180,000
May $ 110,000
June $ 100,000
Budgeted cash collections in June would be
Answer:
$110,300
Explanation:
June collections will comprise of
25% of June sales
71% of May sales
4% of April sales
25% of June sales
=25/100 x 100,000
=$25,000
71% of may sales
=71/100 x $110,00
=$78,100
4% of April sales
=4/100 x $180,000
=$7,200
Total June collections
=$25,000 + $78,100 +$7,200
=$110,300
BIZZ0 estimated that income for January would be $53,500 and expenses would be $37,250. The actual income was $48,500 and the actual expenses were $35,000. What is the variance for the balance (income − expenses)?
Answer:
the variance for the balance is $2,750 favorable
Explanation:
The computation of the variance for the balance is shown below:
= Income - expenses
= (Estimated income - actual income) - (estimated expenses - actual expenses)
= ($53,500 - $48,500) - ($37,250 - $35,000)
= $5,000 - $2,250
= $2,750 favorable
Hence, the variance for the balance is $2,750 favorable
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Suppose that the risk-free rate is 3% and that the market risk premium is 5%. Round your answers to one decimal place. What is the required return on the market?
Answer:
The required return on the market is 8%
Explanation:
Market required rate is the sum of the risk free rate and market risk premium.
Risk free rate is a rate on a treasury stock or government bond because these securities have very low risk or no risk at all as these are backed by government entities.
Market risk premium is the premium paid against the risk to invest in a specific market which is additional to the risk free rate. Different markets have different risk levels. The markets having higher rism will pay higher premium and markets with lower will pay lower risk premium.
The required rreturn on the market can be calculated as follow
Market required return = Risk free rate + Market risk premium
Placing values in the formula
Market required return = 3% + 5%
Market required return = 8%
Whenever significant expansionary policies are implemented and left in place for at least half a year or more, the likely result is:_____.
Answer:
It starts effecting price level - inflationary pressure in economy.
Explanation:
Expansionary policies are aimed at increasing Aggregate Demand, by Fiscal or monetary approach.
Fiscal expansion policy include increasing government public expenditure, reducing government tax revenue. Monetary Expansion policy aim include credit expansion - from decreased LRR, decreased bank rate, decreased marginal requirement etc
Significant expansion policy left for more than half an year, start exerting inflationary pressure on the economy price level.
Answer:
high inflation or reduced government spending
Explanation:
A stock has a beta of 1.2. Suppose the expected market risk premium (EMRP) is 6% and the risk-free rate is 1%. What is this stock's expected return according to the CAPM
Answer:
7%
CAPM = 1% + [6% - 1%](1.2) = 1% + 6% = 7%