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andreyandreev [35.5K]
2 years ago
13

the market risk premium equals the question 37 options: risk-free rate of return plus the inflation rate market rate of return m

inus the risk-free rate of return inflation rate minus the risk-free rate of return risk-free rate of return plus the market rate of return risk-free rate of return multiplied by the market beta
Business
1 answer:
Novosadov [1.4K]2 years ago
6 0

The Market Risk Premium (MRP) is the difference between the market portfolio's expected return  and the risk-free rate.

<h3>What is market ?</h3>
  • A market is a place where buyers and sellers come together to facilitate the exchange and trading of goods and services.
  • A market place can be physical, like a retail store, or virtual, like an e-merchant.
  • Many of the other  examples include illegal markets, auction markets, and financial markets.
  • The structure of the economic market  can be divided into four categories: Perfect competition, monopoly competition, oligopoly,  monopoly.
  • Categories differ in the following characteristics: The number of producers is large in monopoly competition, few in oligopoly, and he is one in monopoly.
  • Markets matter. Markets are the mechanisms through which shares of a company  are bought and sold, providing companies with access to cash.
  • Markets are very important for pricing, liquidity transformation, and enabling businesses to meet customer needs.

To learn more about market from the given link :

brainly.com/question/25754149

#SPJ4

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A company is facing a class-action lawsuit in the upcoming year. It is possible, but not probable, that the company will have to
Reil [10]

Answer:

Disclose the $2,000,000 as a Contingent Liability in the Notes

Explanation:

The Company shall Disclose the $2,000,000 as a Contingent Liability in the Notes.

A Contingent Liability is a Liability whose timing or amount is uncertain

8 0
3 years ago
Assume you have noted the following prices for books and the number of pages that each book contains.Book Pages (x) Price (y)A 5
tigry1 [53]

a) $y=0.00991 x+1.042$b) $r^2=0.7503^2=0.563$\\C) $r=\frac{7(30095)-(4210)(49)}{\sqrt{\left[7(2595100)-(4210)^2\right]\left[7(354)-(49)^2\right]}}=0.7503$

x: 500, 700, 750, 590 , 540, 650, 480

y: 7.00, 7.50 , 9.00, 6.5, 7.50 , 7.0, 4.50

We want to create a linear model like this :

$$y=m x+b$$

Where

$$m=\frac{S_{x y}}{S_{x x}}$$

And:  

$$\begin{aligned}& S_{x y}=\sum_{i=1}^n x_i y_i-\frac{\left(\sum_{i=1}^n x_i\right)\left(\sum_{i=1}^n y_i\right)}{n} \\& S_{x x}=\sum_{i=1}^n x_i^2-\frac{\left(\sum_{i=1}^n x_i\right)^2}{n}\end{aligned}$$

With these we can find the sums:  

$$\begin{aligned}& S_{x x}=\sum_{i=1}^n x_i^2-\frac{\left(\sum_{i=1}^n x_i\right)^2}{n}=2595100-\frac{4210^2}{7}=63085.714 \\& S_{x y}=\sum_{i=1}^n x_i y_i-\frac{\left(\sum_{i=1}^n x_i\right)\left(\sum_{i=1}^n y_i\right) n}{=} 30095-\frac{4210 * 49}{7}=625\end{aligned}$$

And the slope would be:  

m=\frac{625}{63085.714}=0.00991

Now we can find the means for x and y like this:

$$\begin{aligned}& \bar{x}=\frac{\sum x_i}{n}=\frac{4210}{7}=601.429 \\& \bar{y}=\frac{\sum y_i}{n}=\frac{49}{7}=7\end{aligned}$$

And we can find the intercept using this:

$$b=\bar{y}-m \bar{x}=7-(0.00991 * 601.429)=1.042$$

And the line would be:

$$y=0.00991 x+1.042$$

Part b

The correlation coefficient is given by:

r=\frac{n\left(\sum x y\right)-\left(\sum x\right)\left(\sum y\right)}{\sqrt{\left[n \sum x^2-\left(\sum x\right)^2\right]\left[n \sum y^2-\left(\sum y\right)^2\right]}}

For our case we have this:

$$\begin{aligned}& \mathrm{n}=7 \sum x=4210, \sum y=49, \sum x y=30095, \sum x^2=2595100, \sum y^2=354 \\& r=\frac{7(30095)-(4210)(49)}{\sqrt{\left[7(2595100)-(4210)^2\right]\left[7(354)-(49)^2\right]}}=0.7503\end{aligned}$$

The determination coefficient is given by:

$$r^2=0.7503^2=0.563$$

Part c

r=\frac{7(30095)-(4210)(49)}{\sqrt{\left[7(2595100)-(4210)^2\right]\left[7(354)-(49)^2\right]}}=0.7503

Learn more about regression line to visit this link

brainly.com/question/7656407

#SPJ4

4 0
1 year ago
A+student+receives+a+35%+similarity+rate+on+their+lopeswrite+score. +what+does+this+mean+and+what+should+that+student+do+before+
Crazy boy [7]

Answer:

They should make sure it's not like someone else's?

Explanation:

i don't know what you mean by this.

8 0
3 years ago
9. Suppose Betty saves $200 each month in her 401(k) account. How much less will her monthly take-home pay be than if she saved
Elenna [48]

Answer:

$160

Explanation:

The way 401(k) savings work is that employees can save from their earnings before tax is deducted, which means that on the $200 saved no tax is deducted, hence, the take of the employee reduces by $200

When there are savings, a tax of 20% would have been deducted from the $200, as a result, the employee would be left with $160($200-($200*20%)), which means that take-home would reduce by $40, the amount tax deducted.

The reduction in take-home=$200-$40

The reduction in take-home=$160

4 0
3 years ago
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products
Margarita [4]

Answer: Please refer to Explanation

Explanation:

Cross Price Elasticity of Demand measures the responsiveness of Quantity demanded of one good to the price of another good.

Remember that according to the laws of Supply and Demand when prices rise, demand drops.

When the Cross Price Elasticity is POSITIVE, it is said that the goods are SUBSTITUTES because a price increase (decrease) in one leads to more (less) of the other being demanded because they can be switched for one another like Coke and Pepsi.

When Cross Price Elasticity is NEGATIVE however then the goods are COMPLIMENTS because an increase (decrease) in the price of one good led to a reduction(increase) in demand of the other good. This proves that the goods compliment each other and so their demand moves in the same direction.

Raskals and Penguin Patties.

Cross Price ED (Raskals and Penguin Patties) = Percentage change in quantity demanded of Raskals/ Percentage change in price of Penguin Patties

Cross Price ED (Raskals and Penguin Patties) = -4%/-5%

= 0.8

This is positive so Penguin Patties and Raskels are Substitutes albeit weak ones.

Kipples and Penguin Patties.

Cross Price ED (Kipples and Penguin Patties) = Percentage change in quantity demanded of Kipples/ Percentage change in price of Penguin Patties

Cross Price ED (Kipples and Penguin Patties) = 6%/-5%

= -1.2

As it is a negative figure, Penguin Patties and Kipples are Compliments albeit weak ones as well.

5 0
3 years ago
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