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
Andrej [43]
2 years ago
11

Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 4.5%, and the market is in equilib

rium. (That is, required returns equal expected returns.) What is the market risk premium (rM - rRF)
Business
1 answer:
seraphim [82]2 years ago
3 0

The market risk premium of Fund P will be 5.5%.

<h3>How to calculate the market risk premium?</h3>

It should be noted that as per CAPM, the return in stock will be:

= Risk free rate + Beta × Market risk premium

8.90% = 4.5% + 0.8 × Market risk premium.

Market risk premium = 5.5%

In conclusion, the market risk premium of Fund P will be 5.5%.

Learn more about market risk premium on:

brainly.com/question/17135853

You might be interested in
Whitney​ Chamberlin, an experienced event production​ manager, and Jesse​ Chamberlin, a talented​ photographer, used their​ time
Sveta_85 [38]

Answer:

entrepreneurs

Explanation:

Whitney and Jesse are entrepreneurs

5 0
3 years ago
Choose the option that best matches the description given. The social worker is responsible for helping clients_______________.
cestrela7 [59]

Answer:    either a,b or c but probably c

Explanation:

3 0
3 years ago
Victoria has $4000 to put toward consumption this month. She believes there is a 30% chance she will have a bike accident this m
aliina [53]

Answer:

If Victoria purchases insurance, she will have (4000-1200) = $2800 for consumption. Now even if she has an accident, she will not have to incur any medical costs.

So the expected value of Victoria’s consumption should she purchase the insurance cover is $2800.

Expected utility should Victoria purchase insurance will be equal to the total utility as Victoria will surely have 3100 for consumption.

E(U )= 3100^{0.8}

E(U) = 621 (rounded off to nearest integer)

5 0
4 years ago
1.   Workplace communication can suffer when individuals
bonufazy [111]

Workplace communication can suffer when individuals use text lingo or emoticons. Correct answer:A

It is very important companies to have good workplace communication because it helps them to be productive and operate effectively. Emoticons aren't universal and they can get lost in translation. They also make you seem less competent. However, if your workplace is informal, emoticons are likely more acceptable.

8 0
3 years ago
Read 2 more answers
Ownership concentration is determined by both:________ a. the number of outside directors and total percentage of shares they ow
Inessa [10]

Answer:

b.

Explanation:

Ownership concentration refers to the internal governance mechanism where the owners of the company/firm/business (shareholders) can control and thus influence the direction that the company takes in order to protect their own interests. Therefore the ownership concentration is determined by both the number of stockholders and the parties they represent.

6 0
3 years ago
Other questions:
  • American Chemical Company manufactures a chemical compound that is sold for $52 per gallon. A new variant of the chemical has be
    6·1 answer
  • If you have a bank account whose principal = $1000, and your bank compounds the interest twice a year at an interest rate of 5%,
    12·1 answer
  • The long-run aggregate supply curve shifts left if… Group of answer choices The capital stock decreases All of these answers are
    15·1 answer
  • Tuition of $3400 is due when the spring term begins, in 4 months. What amount should a student deposit today, at 12%, to have en
    12·1 answer
  • Boxer Company owned 20,000 shares of King Company that were purchased in 2019 for $500,000. On May 1, 2021, Boxer declared a pro
    5·1 answer
  • When all employees are exceedingly clear about what is expected from them, guidelines for task completion are clear and understo
    15·1 answer
  • How do scarce resources influence you personally? What impact does this have on your financial management?
    14·1 answer
  • Describe the benefits and disadvantages of different career pathways
    9·1 answer
  • Is streaming Business in form 4 Diffult?. Justify your Answer.​
    14·1 answer
  • Based upon Booked Orders and Sales Predictions, the expected finished goods requirements is 550 units over the planning period.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!