Suppose the risk-free return is 2.7 %2.7% and the market portfolio has an expected return of 7.5 %7.5% and a volatility of 17.8 %17.8%. Merck & Co. (Ticker: MRK) stock has a 21.2 %21.2% volatility and a correlation with the market of 0.0570.057. a. What is Merck's beta with respect to the market? b. Under the CAPM assumptions, what is its expected return

Case in point 1.2 suppose you work in the it department of global hotels, a multinational hotel chain. global hotels runs several specialized business support systems, including a guest reservations system that was developed in-house to meet the requirements of a large company with worldwide operations. guests can make one-stop online reservations by visiting global's website, which has links to all major travel industry sites. global hotels just acquired momma's, a regional chain of 20 motels in western canada. momma's uses a vertical reservations package suitable for small- to medium-sized businesses and a generic accounting and finance package. should momma's use global hotels' information systems or continue with its own? in your answer, consider issues such as business profiles, business processes, system interactivity, edi, ecommerce, and the characteristics of both information systems. what additional information would be to you in making a recommendation?

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk