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Sindrei [870]
1 year 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]1 year 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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What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?
Lostsunrise [7]

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

<h3 /><h3>How does expansionary monetary policy affect trade?</h3>
  • Increases in the stock market are a result of expansionary economic policy since it boosts economic activity. Fiscal and monetary channels can be used by policymakers to carry out an expansionary strategy. It is typically used when inflationary pressures are low and the economy is headed towards a recession.
  • When a central bank employs an expansionary monetary policy, it helps to boost the economy. This boosts the availability of money, brings down interest rates, and raises demand. It promotes economic expansion. It reduces the currency's worth, which decreases the exchange rate.
  • The following are the general effects of monetary policy on economic activity, as measured by changes in (real) interest rates. Financial institutions can obtain funds at cheap interest rates when interest rates fall. They are able to lower their lending rates for loans to businesses and households as a result.
  • Expansive monetary policy can be quite successful in the early stages of a financial and economic collapse, reducing uncertainty spikes and tail risks and preventing negative feedback loops (e.g. Mishkin 2009).

What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

To learn more about lineage, refer to:

brainly.com/question/18939014

#SPJ4

7 0
1 year ago
Peter Company acquired 75 percent of Sally Company on January 1, 2019 for $712,500. During 2019, Sally purchased inventory for $
dezoksy [38]

Answer:

Journal entry to eliminate Sale to Peter Company

Debit : Sales Revenue (Sally Company ) $50,000

Credit : Cost of Sales (Peter Company) $50,000

Explanation:

Peter Company and Sally Company are in a group and Peter Company is the Parent whilst Sally Company is the subsidiary.

For 2019 Eliminate an Intragroup Transactions that occur between Peter Company and Sally Company.

8 0
3 years ago
Difference between accounts payable and accounts receivable
algol13
Payable=outcome
receive=Income
8 0
3 years ago
A company can shorten its cash cycle by: __________
Dafna1 [17]

Answer:

None of the above

Explanation:

Companies can shorten their cash cycles by turning over their inventory faster. The quicker a company sells its goods, the sooner it takes in cash from cash and credit card sales and begins its accounts receivable aging. Inventory turnover has no impact on the cash cycles of service companies with no inventory.

5 0
3 years ago
Read 2 more answers
Which phrase best describes the purpose of a slide master? Check all that apply.
Ksju [112]

Answer: to establish the layout of all slides, or a group of slides, in a presentation.

to determine the theme of all slides, or a group of slides, in a presentation.

to allow users to apply changes in layout or theme to an entire presentation.

Explanation:

It should be noted that the Slide Master refers to the top slide which controls the information regarding the background, fonts, theme, layout, and color of all the slides in Microsoft PowerPoint.

The phrase best describes the purpose of a slide master include:

• to establish the layout of all slides, or a group of slides, in a presentation.

• to determine the theme of all slides, or a group of slides, in a presentation.

• to allow users to apply changes in layout or theme to an entire presentation.

Therefore, the correct options are C, D and F.

8 0
3 years ago
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