If the simple CAPM is valid, is the following situation possible? Portfolio Expected Return Standard Deviation Risk-free 10 % 0 % Market 18 24 A 20 22 Yes No

In a macroeconomic context, what are implicit liabilities? money owed to people possessing government issued bonds. the amount of money that firms collectively owe to shareholders. money that the government has promised to pay in the future. payments that the federal government undertakes only during periods of recession. which of the choices is a significant implicit liability in the united states? military spending education spending national science foundation spending social security

Suppose you purchase shares in acme gadget company for $10 per share. the company believes there is a 20 percent chance it will fail to earn a discounted future profit of $1.85. what is the expected rate of return on your investment? suppose you purchase shares in acme gadget company for $10 per share. the company believes there is a 20 percent chance it will fail to earn a discounted future profit of $1.85. what is the expected rate of return on your investment?

On january 2, 2016, twilight hospital purchased a $94,800 special radiology scanner from bella inc. the scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. the straight-line method of depreciation is used on this scanner. annual operating costs with this scanner are $106,000. approximately one year later, the hospital is approached by dyno technology salesperson, jacob cullen, who indicated that purchasing the scanner in 2016 from bella inc. was a mistake. he points out that dyno has a scanner that will save twilight hospital $26,000 a year in operating expenses over its 3-year useful life. jacob notes that the new scanner will cost $111,000 and has the same capabilities as the scanner purchased last year. the hospital agrees that both scanners are of equal quality. the new scanner will have no disposal value. jacob agrees to buy the old scanner from twilight hospital for $40,500. if twilight hospital sells its old scanner on january 2, 2017, compute the gain or loss on the sale. prepare an incremental analysis of twilight hospital.