The maturity risk premium on the 2-year Treasury security is C. 1.39%
Using this formula
rd = r* + IP + MRP
Where
rd represent Required rate of return on 2-year Treasury Security = 6 75%
r* represent real risk free return = 3.18%
IP represent Inflation Premium = 2.18%
MRP represent Maturity Risk Premium
Let plug in the formula
6.75% = 3.18% + 2.18% + MPR
6.75%=5.36%
MRP=6.75% -5.36%
MRP = 1.39%
Inconclusion the maturity risk premium on the 2-year Treasury security is C. 1.39%.
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Answer:
The price of the stock is expected to be $188.16 in 1 year.
Explanation:
This can be determined as follows:
Current price of the stock = Expected next dividend / Expected return = $24.87 / 15.2% = $163.62
Expected stock price in 1 year = Current price of the stock * (100% + Expected return)^Number of year = $163.62 * (100% + 15.2%)^1 = $188.16
Therefore, the price of the stock is expected to be $188.16 in 1 year.
Answer:
sorry I don't have one! T~T
Explanation:
The analytic technique utilized after an adverse event occurs to prevent its recurrence is called Root cause analysis.
<h3>
What are the root cause analysis five steps?</h3>
- Root cause analysis is a technique for problem-solving used in science and engineering to determine the underlying reasons of errors or issues.
- It is frequently utilized in areas like information technology operations, telecommunications, industrial process control, accident investigation, and the healthcare sector.
- Realize the Issue: To start, you must decide what went wrong.
- Gather a Good Amount of Information.
- Determine the Related Causal Factors.
- Create a conclusion.
- Make any necessary adjustments.
- The analytic technique utilized after an adverse event occurs to prevent its recurrence is called
- Root cause analysis.
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