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ss7ja [257]
2 years ago
6

The systematic risk principle states that the expected return on a risky asset depends only on the asset’s ___ risk.

Business
1 answer:
Ahat [919]2 years ago
5 0

The systematic risk principle states that the expected return on a risky asset depends only on the asset’s <u>market </u>risk.

<h3>What are systematic risk principles?</h3>

According to the systemic risk concept, the expected return on an asset is solely determined by its systematic risk. As a result, regardless of how much overall risk an asset carries, just the systematic part is significant in estimating the expected return (including risk premium) on such asset.

Market risk is a kind of systematic risk that affects the entire market. Because it cannot be diversified and distributed, the investor is compensated for it.

Learn more about systematic risk principles here:

brainly.com/question/25821437

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Learn more about systematic risk principles here:

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only deposits of a rare and sought-after mineral known as Yuksporite are found in ussia. Since no other nation has deposits of Y
mash [69]

Answer:

D. Absolute Advantage

Explanation:

Absolute advantage represents an economics principle referring to the capability of a firm or a country or even an individual to manufacture or produce a larger quantity of a product or offer a greater quantity of a service than its competitors especially with the same amount of resource which in in reference to international trade is labour.

The absolute advantage for Russia in the question is that it has the only deposits of Yuksporite and using the same amount of labour input other countries would have used, Russia has the absolute advantage as the only manufacturer of goods that would come out of Yuksporite.

4 0
3 years ago
Read 2 more answers
A company looking to expand internationally with little risk would choose?
leva [86]

Answer:

  • Licensing
  • Franchising

Explanation:

There are no options but Licensing as well as Franchising are some of the least riskiest ways to expand internationally.

With Licensing, the company looking to expand simply sells licenses to various companies in different countries giving them the right to use their image. Basically, the company the license is sold to gets access to the seller's intellectual property but then can run their business with a significant degree of autonomy.

Franchising represents another way to expand with little risk. It involves a company giving a license to another company to sell and sometimes produce their products as well as image rights. The company will give the franchisee (company that gets the license) the knowledge and training required to maintain the franchise and in exchange, franchisee pays a fee.

Both of these methods ensure that the name and brand of a company spread internationally whilst making money from it. Risk is minimized because the investment in other countries is low to nothing.

3 0
3 years ago
An investor wants to save money over a long period of time. This investor does not need to have easy access to the money and is
Mariana [72]

If an investor wants to save money over a long period without easy access to the money and knowing the interest rate will not change, they need <u>A. Bonds</u>.

<h3>What are bonds?</h3>

Bonds are securities that guarantee the return of capital and periodic interests on a long-term basis.

Types of Bonds include:

  • U.S. Treasury Bonds
  • Corporate Bonds
  • Municipal Bonds.

Thus, if an investor wants to save money over a long period without easy access to the money and knowing the interest rate will not change, they need <u>A. Bonds</u>.

Learn more about long-term investments at brainly.com/question/17050326

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6 0
2 years ago
Colleen Matthews had just turned 22 when her hard work finally started to pay off. Six months earlier Colleen graduated from a s
const2013 [10]

Answer:

Prosecutors of this case can use the net worth method to determine the extent these executives have been receiving  illegal incomes by computing their wealth at the beginning  and at the end of the period under investigation.

There will be an increase in the executives wealth, and since this increase cannot be traced to any legal income source, it will become taxable income, with the calculated penalties and fines.

Explanation:

The net worth method specifies that any increase in wealth, which is not traced to non-taxable sources, should be determined as a taxable income for the period under review.  Ordinarily, the net worth is the difference between assets and liabilities.  Since the executives use the money personally at their convenience, this will increase their personal wealth.

5 0
2 years ago
Why would the US government sell government securities to private individuals and organizations?
shusha [124]
D to increase the money supply and lower the inflation rate
4 0
3 years ago
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