Assume that expected return of the stock A in Rachel’s portfolio is 13.6% this year. The risk premium on the stocks of the same industry are 4.8%, betas of these stocks is 1.5 and the inflation rate was 2.7%. Calculate the risk-free rate of return using Capital Market Asset Pricing Model (CAPM).

6.4%

Step-by-step explanation:

Capital asset pricing model measure the expected return on an asset or investment. it is used to make decision for addition of specific investment in a well diversified portfolio.

As per given data

Expected return = 13.8%

Market Risk premium = Mrp = 4.8%

Investment beta = = 1.5

Formula for CAPM

Expected return = Risk free rate + beta ( market risk premium )

Expected Return = Rf + ( Mrp)

As we have the expected return, we need to calculate the the risk free rate.

13.6% = Rf + 1.5 ( 4.8% )

13.6% = Rf + 7.2%

Rf = 13.6% - 7.2%

Rf = 6.4%

$15 each

step-by-step explanation:

$45/3 children= $15 each

when rotating a figure 180 degrees, imagine that you are able to take the figure and turn it clockwise or counterclockwise around a center point. to rotate a figure 180 degrees, you will need to apply the rule (x, y) → (-x, -y). start by using a coordinate grid with coordinates for each vertex of the figure. the center point of the coordinate grid is located at (0, 0), which is what you will rotate the figure around. write down the original coordinates of the shape you are going to rotate. then, apply the rule. for example, coordinate (1, 2) becomes (-1, -2). another example would be, coordinate (-4, -2) becoming (4, 2). after you change each original coordinate to the rotated coordinate, you will draw your new figure.

step-by-step explanation: