1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ss7ja [257]
1 year 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]1 year 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

#SPJ1

Learn more about systematic risk principles here:

You might be interested in
You decide to work in japan for the next 10​ years, accumulate some​ savings, then move back to the united states and convert yo
PtichkaEL [24]

<span>You should be encouraged to work in Japan  as the growing American preference for Japanese goods will lead to an increase the value of the yen relative to the U.S dollar and raise the value of your savings when converted to dollars.</span>

8 0
3 years ago
Assume $1,000 is deposited in a checkable account by Mr. Y in Bank A. Assume further that the reserve requirement is 0.10. The i
scZoUnD [109]

Answer:

$900

Explanation:

As $1,000 is deposited in the account by Mr. Y in the Bank A. But the further requirement of the reserve is 0.10. So, it will amounts to:

Amount of reserve requirement = Amount deposited × Requirement of reserve

where

Amount deposited is $1,000

Requirement of reserve is 0.10

= $1,000 × 0.10

= $100

Therefore, the initial amount of the money that created by excess reserve is:

= Amount deposited - Amount of reserve requirement

= $1,000 - $100

= $900

6 0
3 years ago
Marigold Corp.'s account balances at December 31, 2020 for Accounts Receivable and the related Allowance for Doubtful Accounts a
strojnjashka [21]

Answer:

The necessary adjusting entry would include a credit to the allowance account for $40080

Explanation:

Marigold Corp.'s Account Balances

At December 31, 2020

Accounts Receivable  $917000 Debit

Allowance for Doubtful Accounts $1920 credit

Bad Debts                                $42000

Unadjusted Balance  of Uncollectibles          $ 1920

<u>Estimated Balances                                         $ 42000</u>

<u>Required  Adjustment                                      $ 40080</u>

<u />

The data tells that the Allowance for Doubtful Accounts  has a credit balance of $1920 the required adjustment to the allowance for doubtful accounts is $ 40080. The required entry is

Bad debts Expense            40,080 Dr.

Allowance for Doubtful Accounts $40,080 credit

4 0
3 years ago
The role of the entrepreneur in society is to bring the factors of production together and take the risks of producing output. r
tatuchka [14]

Answer:

bring the factors of production together and take the risks of producing output.

Explanation:

Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.

The four factors of production are;

I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.

II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.

III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.

IV. Entrepreneurship: it is the intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).

In a society, the role of an entrepreneur is mainly focused on bringing the four (4) factors of production together and take the risks of producing output, so as to generate revenue through sales and make economic profits in the long-run.

In conclusion, when the aforementioned factors of production are combined effectively and efficiently, they can be used for the manufacturing or production of goods and services to meet the unending requirements or needs of the consumers.

3 0
2 years ago
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch
cricket20 [7]

Answer:

a) Present value of the investment: $198,936

b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.

c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch

Explanation:

Please find detailed of calculation in (a) which is shown as below:

Present value =  Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] -  [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.

7 0
3 years ago
Other questions:
  • You originally required a risk premium of 6 percent in addition to the rate of return on safe assets before you would purchase s
    13·2 answers
  • You observe a closed economy that has a government deficit and positive investment. Which of the following is correct? a. Privat
    10·1 answer
  • Oscarz Aviation's Web site, GoOscarzAv, informs customers about a wide variety of services offered by the firm. It also has a gu
    10·1 answer
  • The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investm
    12·1 answer
  • The flexible budget variance is the difference between the​ ________.
    13·1 answer
  • Gears Inc., an automobile manufacturing firm, has hired an external agency to handle its employee compensation function so that
    8·2 answers
  • Robert is a strategic planner for a consulting firm. He receives countless reports for daily analysis, but he avoids being inund
    6·2 answers
  • In the rational decision-making process, which of the following should one do after identifying the alternatives?
    14·1 answer
  • Thomlin Company forecasts that total overhead for the current year will be $13,502,000 with 157,000 total machine hours. Year to
    15·1 answer
  • The Beckham Company has the following information about their activity cost pools: Activity Cost Pools Total Overhead Cost Total
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!