Orter Plumbing's stock had a required return of 11.00% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.) Select the correct answer.

The new required rate of return is 13.32%

Explanation:

The required rate of return is the minimum return that investors require for investing in a stock based on its risk. The required rate of return can be calculated using the CAPM model.

The formula for required rate of return (r) is:

r = rRF +Beta * rpM

Where,

The beta of the stock is:

11 = 5.5 + beta * 4.75

11 - 5.5 = beta * 4.75

5.5 / 4.75 = beta

beta = 1.15789

The new required rate of return will be:

r = 5.5 + 1.15789 * (4.75 + 2)

r = 13.315% rounded off to 13.32%

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )