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Sindrei [870]
2 years ago
13

The annual return on the s&p 500 index was 12.4 percent. the annual t-bill yield during the same period was 5.7 percent. wha

t was the market risk premium during that year?
Business
1 answer:
EleoNora [17]2 years ago
7 0

The annual return on the s&p 500 index was 12.4 percent. The annual t-bill yield during the same period was 5.7 percent. Then the market risk premium during that year will be 6.7 percent.

The marketplace risk premium is the distinction between the expected go back on a market portfolio and the chance-unfastened price. The marketplace threat top fee is the same as the slope of the SML, a graphical representation of the CAPM.

To calculate market risk premium use the formula

Market risk premium = ( Market rate of return ) - ( Risk-free rate of return )

Market risk premium = 12.4 - 5.7 = 6.7%

Therefore Market risk premium is 6.7 percent ( 6.7 % )

The annual return back is the go-again that funding presents over a period of time expressed as a time-weighted annual percent. Assets of returns can embody dividends, returns of capital, and capital appreciation.

Learn more about market risk premium here   brainly.com/question/24001280

#SPJ4

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Benson Company produces flash drives for computers which have variable costs of $10 per flash drive to produce. Each flash drive
Leno4ka [110]

Answer:

It increases by 50 units.

Explanation:

Current break even point = \frac{Fixed\:Cost}{Contribution\:per\:unit}

Here, fixed cost = $4,500

Contribution per unit = Selling price - Variable Cost = $20 - $10 = $10

Current break even point = \frac{4,500}{10} = 450 units

If variable cost increase by 10% then revised variable cost = $10 + 10% = $11

Contribution per unit = $20 - $11 = $9 per unit

Break even sales in units = \frac{4,500}{9} = 500 units

Difference in original and revised break even = Revised - Original = 500 - 450 units = 50 units,

Thus original break even increases by 50 units, = 50/450 = 11.11% increase.

Final Answer

It increases by 50 units.

6 0
3 years ago
If consumers buy less of a commodity when their incomes rise, this commodity is .
WINSTONCH [101]
The commodity is an inferior good. 

An inferior good is one for which the quantity demanded decreases when the income of the consumer increases, or one for which the quantity demanded increases when the income of the consumer decreases. In contrast, a normal good is one for which the demand increases when the consumer's income increases.
6 0
3 years ago
Read this citation for an informative essay. Davis, Victoria. Joining the Secret Service. Washington, D.C.: Free Print Press, 20
sertanlavr [38]

Answer

This citation is for a book on how to join the Federal Bureau of Investigation

Explanation

A Federal Bureau of Investigation (FBI) special agents work for the federal government and are responsible for conducting investigations according to the federal laws. The special agents are professionals responsible for analyzing a wide range of cases because investigators have skills in specific areas such as crime, accounting or engineering. Joining the secret service requires a person to obtain: a bachelor’s degree, gain work experience, complete the FBI application process, and go through the FBI Academy Training.



6 0
4 years ago
Read 2 more answers
What is the deadline within which HUD must complete a discrimination investigation once a complaint is received
goldenfox [79]

two (2) years of the most recent date of alleged discriminatory action.

What is HUD ?

The United States government's Department of Housing and Urban Development (HUD) was established in 1965 as a part of then-President Lyndon Johnson's Great Society program to broaden the nation's welfare state. Its main goal is to increase chances for affordable homeownership in order to strengthen the inner-city housing market and homeownership.

The goals of HUD's programs are to expand safe and inexpensive rental options, decrease chronic homelessness, combat housing discrimination by providing equitable access to the rental and purchase markets, and assist disadvantaged groups.

The U.S. government's Department of Housing and Urban Development (HUD) promotes neighborhood growth and house ownership.

Based on sex, race, color, national origin, religion, family status, and disabilities, the Fair Housing Act outlaws discrimination in housing.

Learn more about HUD with the help of given link:-

brainly.com/question/10405416

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8 0
2 years ago
Swifty's Market used the perpetual method to record the following events involving a recent purchase of inventory:
butalik [34]

Answer:

Inventory balance will be of 73,318

Explanation:

Inventory                     75,400

     Account payable                75,400

to record goods received

Account payable           1,300

           Inventory                          1,300

to record return of goods

Inventory                          700

            Cash                                  700

to record payment of freight

Account Payable        74,100

            Inventory                         1,482

            Cash                              72,618

to record payment of invoice within discount period

75,400 - 1,300 = 74,100

74,100 x 2% = 1,482

Inventory balance:

<em>   DEBIT         CREDIT</em>

 75,400

                       1,300

      700

                       1,482

<u><em>balance: </em></u>

  73,318

8 0
3 years ago
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