The market risk premium is 14.12. A market risk premium in finance and economic is used to measure how much the level of risk.
A risk premium means a measure of excess return that is used by an individual to compensate being subjected to an improved degree of risk. A risk premium is the common definition being the expected risky return less the risk-free return.
To find the amount of risk premium, we can calculate it use beta of the stock formula:
Beta of the stock = (expected return - risk-free rate) ÷ risk premium
Because we need the amount of risk premium, then it will be:
Risk premium = Beta of the stock/(expected return - risk-free rate)
Risk premium = 1.75/(15.7% - 3.3 percent)
Risk premium = 1.75/(0.157 - 0.033)
Risk premium = 1.75/0.124
Risk premium = 14.12
Thus, the market risk premium is 14.12.
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Answer:
d. joint venture.
Explanation:
A cooperative, business trust or a franchise are generally stable businesses that are formed to operate in the long run.
On the other hand, a joint venture occurs when different entities get together to do business and that can be a one time event only. In this case, Rusty was hired for spraying the fields one time only (one time event).
The term that describes the restoration of the insured person to the financial position that he or she was in before the loss occurred is called indemnity. This allows protection to the insurer in case of loss and damage and will protect against any legal quandry that may occur.
In the simple quantity theory of money in the AD-AS framework, the AS curve kinked at natural real.
<h3>
What is AS curve or A
ggregate Supply Curve?</h3>
- The amount of real GDP that the economy produces at various price levels is represented by the aggregate supply curve.
- The methodology used to build the supply curve for all products and services is different from the methodology used to build the supply curve for individual goods and services.
- It is assumed that input prices will remain constant when calculating the supply curve for a certain good.
- The price level, however, defines the aggregate supply curve. As the price level rises, producers will be able to charge more for their goods, which will stimulate production.
- However, a price increase will also have a secondary effect that will eventually result in an increase in input prices.
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Answer:
C. collective bargaining
Explanation:
Collective bargaining is when negotiations for better terms of service involve and a group of employees or organized representatives of employees and the employers. The essence of collective bargaining is to have negotiations conducted by parties with interests only, not outsiders.
Collective bargaining may involve a single firm and its employees or employees from different organizations within the industry and their employers. The negotiation objective is to reach an agreement on improved terms or better working conditions.
