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Nana76 [90]
2 years ago
10

Consider the following two investment alternatives. First, a risky portfolio that pays a 12 percent rate of return with a probab

ility of 50% or a 4 percent return with a probability of 50%, and second, a T-bill that pays 3 percent. The risk premium on the risky investment is
Business
1 answer:
zaharov [31]2 years ago
5 0

The risk premium on the risky investment is 5%

<h3>What is investment?</h3>

The dedication of an asset to achieve an increase in value over time is referred to as investment. Investment necessitates the sacrifice of a current asset, such as time, money, or effort. The goal of investing in finance is to generate a return on the invested asset.

Income investing is an investment strategy that focuses on constructing an investment portfolio that is specifically designed to generate regular income. The income investing strategy's sole goal is to generate a consistent stream of income.

The type of investor you are and how you should make investments are determined by your investing personality. Your investing personality is essentially your financial risk profile, which takes into account a variety of factors such as age, financial history, circumstances, and investment objectives.

To know more about investment follow the link:

brainly.com/question/25790997

#SPJ4

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2 years ago
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be
e-lub [12.9K]

Answer:

Esquire should purchase machine B since its present value is lower than machine B's ($69,917.73 < $73,356.18)

Explanation:

Machine A:

PV of purchase cost $63,000

PV of maintenance costs = $2,000 x 6.7101 (PV annuity factor, 10 periods, 8%) = $13,420.20

PV of resale value = -$6,615 / 1.08¹⁰ = -$3,064.02

total PV = $63,000 + $13,420.20 - $3,064.02 = $73,356.18

Machine B:

PV of purchase cost $52,500

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total PV = $69,917.73

7 0
3 years ago
With rapid advancements of science and technology, the emergence of artificial intelligence is transforming traditional practice
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Explanation:

The globalized and competitive business environment requires companies to be in line with new trends and market changes that happen very quickly around the world. Organizational automation is already happening on a large scale in large companies and the tendency is for artificial intelligence to reach more and more organizations, regardless of the sector or the size of the company.

In the human resources department, the crossing of information from the company and candidates can assist in a more effective and standardized recruitment and selection process for the company, with the chances of aligning the company's values ​​and skills with those of the professional sought. to complete the staff.

The main advantages of artificial intelligence in HR is the speed with which the process is carried out, the lowest cost and the highest standardization, but although it is advantageous, it is still not a sufficient process to replace the human recruiter in the decisive stages of the process, as artificial intelligence systems still need to achieve the subjectivity inherent to human beings, which is essential for the creation of the expected organizational climate.

5 0
3 years ago
1. In the study of communication, noise is best defined as _
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Noise is any form of interaction that prevents or interfere with the adequate transfer and recieving of Information.

Communication can be in the form of verbal communication,print media(News papers, letters etc) through electronic communications (email, television, mobile phone etc).

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