1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Define cultural intelligence<br>How important is it terms of doing business globulty
Alex17521 [72]
Cultural Intelligence can be described as the capability of a person to relate and communicate to different cultures including his own. This can be very important in terms of doing global business involving different cultures. This intelligence can be used to analyze other cultural techniques and easily relate to them. 
4 0
3 years ago
During January, its first month of operations, Flint Company accumulated the following manufacturing costs: raw materials purcha
VashaNatasha [74]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

3 0
3 years ago
BRAINLIEST REWARD
ivolga24 [154]
They are to set a plan and Have parameters
6 0
3 years ago
The price elasticities of supply and demand affect A. the tax incidence but not the size of the deadweight loss from a tax. B. b
stira [4]

Answer:

B. both the size of the deadweight loss from a tax and the tax incidence

Explanation:

The price elasticities of demand & supply are : buyers' & sellers' - demand & supply responsiveness to price change.

On levy of indirect tax - whose burden can be shared between buyers & sellers ; it affects tax incidence & deadweight loss both :-

  • More tax burden shifts on buyers if demand is more inelastic, more tax burden shifts on sellers if supply is more inelastic.
  • Deadweight loss is the effect of tax re allocation,  benefitting neither of consumer surplus, producer surplus, government revenue. It is less when demand &, or supply are more inelastic

4 0
3 years ago
You have $10,000 to invest - $3,500 in Company A, the remaining amount in Company B. The expected returns for these stocks are 2
mihalych1998 [28]

Answer:

The expected return on the portfolio is:

16.75%

Explanation:

a) Data and Calculations:

                                Company A      Company B      Total

Investment                  $3,500              $6,500      $10,000

Expected returns          20%                    15%

Expected returns ($)   $700                $975         $1,675

Expected return on

portfolio = $1,675/$10,000 * 100 = $16.75%

b) The expected return on the portfolio is calculated as the returns on the portfolio in dollars divided by the total investment in the two companies, multiplied by 100.  This gives a value in percentage terms.

6 0
3 years ago
Other questions:
  • During the meeting malcolm constantly reminds the rest of the team that he is in charge of this project, and it must be carried
    12·2 answers
  • A market might have an upward-sloping long-run supply curve if A. firms have different costs. B. consumers exercise market power
    6·1 answer
  • Suppose a u.s. firm builds a factory in china, staffs it with chinese workers, uses materials supplied by chinese companies, and
    10·1 answer
  • Need Help ASAP!!!
    15·1 answer
  • ______is the difference between the early start and the late start days for a given
    13·1 answer
  • In the global business environment, small businesses are becoming more entrepreneurial while larger organizations are "shying" a
    14·1 answer
  • The firm projects a rapid growth of 40 percent for the next two years and then a growth rate of 20 percent for the following two
    5·1 answer
  • What actions might be taken to reduce the risk associated with a loan to start the business? Give examples please​
    14·1 answer
  • The relationships between inventory and throughput, and inventory and operating expense are defined as follows: As everyone is s
    14·1 answer
  • All of the following are advantages of having a savings account except
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!