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Nataly [62]
2 years ago
6

Suppose that hedonic wage studies indicate a willingness to pay $50 per person for a reduction in the risk of a premature death

from an environmental hazard of 1/100,000. If the exposed population is four million people, what is the implied value of a statistical life?
Business
1 answer:
zmey [24]2 years ago
8 0

Answer:

  • The willingness to pay $50 to reduce the risk of premature death from an environmental hazard of 1/100,000.
  • The exposed population is 4 million.
  • The implied value of statistical life can be calculated as follows

Explanation:

<h3>vsl \:  =  \frac{change \: in \: willingless \: to \: pay \: }{change \: in \: risk}</h3><h3>\frac{50 \: dollar \:  \times 4 \: million}{1\div10000 \times 4 \: million \:  }</h3><h3>\frac{20 \: million \: }{40}</h3><h3>= $ 5,000,000</h3>

STAY SAFE, STAY HEALTHY AND BLESSED

HAVE A GOOD DAY

THANK YOU

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6 0
3 years ago
Read 2 more answers
The Rhaegel Corporation’s common stock has a beta of 1.2. If the risk-free rate is 4.3 percent and the expected return on the ma
alexira [117]

Answer:

Cost of equity = 14.74%

Explanation:

The capital asset pricing model is a risk-based model for estimating the return on a stock..

Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk.

Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.  

Under CAPM,  

E(r)= Rf + β(Rm-Rf)  

E(r)- cost of equity , Rf-risk-free rate , β= Beta, Rm= Return on market.  

Using this model, we can work out the value of beta as follows:  

β-1.2 Rf- 4.3%, Rm = 13%  

E(r) = 4.3% + 1.2 × (13 - 4.3)%=14.74 %

Expected return = 14.74 %

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8 0
3 years ago
Anthony picked up a package of paper plates and noticed that there was a coupon stuck onto the package that stated, "Save 50 cen
Scorpion4ik [409]

Answer:

e.  instantly redeemable coupon

Explanation:

Instantly redeemable coupon -

It is the type of coupon , which is provided along with the goods or services , the person opt for , is referred to as instantly redeemable coupon.

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Answer:

Paid -in Excess capital as on December 31, 2021 $124 million

Explanation:

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For Jan 1, 8 million ×  $15              $120 million

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