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kodGreya [7K]
2 years ago
12

Assume that over the past 88 years, u. S. Treasury bills had an average return of 3. 5 percent as compared to 6. 1 percent on lo

ng-term government bonds. During this same time period, assume inflation averaged 3. 0 percent. What was the average nominal risk premium on the long-term government bonds?.
Business
1 answer:
zheka24 [161]2 years ago
8 0

The average nominal risk premium on the long-term government bonds was 2.6 percent.

A risk premium is the expected investment return on an asset that is higher than the risk-free rate of return. The risk premium on an asset is a form of compensation for investors. It compensates investors for tolerating the additional risk in a given investment over that of a risk-free asset. Subtracting the return on risk-free investment from the return on investment yields the risk premium.

The nominal risk premium is:

Nominal Risk-Free Rate - Inflation Premium = Real Risk-Free Rate. Nominal rates are the rates we encounter on a daily basis, such as interest rates from banks and other financial institutions.

Nominal risk premium = 6.1 % -3.5 %

= 2.6%.

Learn more about risk premium here-

brainly.com/question/15570868

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The term "benchmarking" as it relates to the hotel industry refers to a line-by-line analysis of an operating statement, compari
valentinak56 [21]

Answer:

The term "benchmarking" as it relates to the hotel industry refers to comparing metrics for hotels of similar size or profile.

Explanation:

a) Benchmarking is a process wherein a company's products, services, business processes, or performance metrics are compared with a “best in class” competitor.  The purpose of benchmarking is to enable organizations to make improvements by adapting specific best practices.  A retail shop's metrics can be compared with the leading retail shop in your area.  Given the deep insight gathered from benchmarking, this retail shop can decide to alter its line of products, the way it competes in the marketplace, or to undertake some improvements in her business processes.

There are four types of benchmarking, including internal, competitor, functional, and generic.  Internal benchmarking is limited to internal processes.  Competitor benchmarking compares one company's processes, products, or services to another.  Functional benchmarking compares one function of an entity to another entity's.  While generic benchmarking compares unrelated companies' processes or functions.

7 0
4 years ago
The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 30 percent. Interest expe
natali 33 [55]

Answer:

Explanation:

Step 1

The pro forma income statement of Crosby Inc is as follows, in attachment

Step 2

The excel workings for pro forma income statement of Crosby Inc. is shown below,

Step 3

The pro forma balance sheet of Crosby Inc is as follow...

3 0
4 years ago
8.2 briefly describe the planning process. be sure to include summaries of the strategic, operating, and financial plans. 8.7 wh
stellarik [79]

Planning process can be dined as the process to plan for future that aids in the organisational success of the organization or within the healthcare market.

The process of carrying out our future plans of action in order to contribute to organisational success is known as planning. The fundamental beliefs that serve to define and establish the organization's basis are represented by its strategic organisational values.

The road map that carries out the organisational strategic strategy includes operating plans. It includes all of the guidelines required to achieve all goals. It includes advice on how to carry out a task successfully. The five-year plan is regarded as the financial plan. It focuses on the organization's overall financial health, investments, and funding. It gives a general summary of the company.

To know more about planning, refer to the following link:

brainly.com/question/24864915

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3 0
2 years ago
What is the beta for a 2 stock portfolio with a 0.43 weight in Walmart stock and the remainder in Amazon
Contact [7]

Answer: 0.82

Explanation:

From the given formulas, the beta of Walmart is 0.3616 and the beta of Amazon is 1.1634.

The portfolio beta is going to be a weighted average of these two betas:

= (0.43 * 0.3616) + ( (1 - 0.43) * 1.1634)

= 0.155488 + 0.663138

= 0.82

7 0
3 years ago
I wanna know about debit and credit full explanation ​
BigorU [14]

Answer:

Explanation:

A debit is an entry made in an account. It either increases an asset or expense account or decreases equity, liability, or revenue accounts.

A credit is an entry  alsom made in an account. It either increases equity, liability, or revenue accounts or decreases an asset or expense account.

7 0
3 years ago
Read 2 more answers
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