Answer:
risk premium increases by more of the low - beta stock
A risk averse investor is an investor that avoids risk. if risk aversion increases, it means that the investor is more wary of risky investment.
Beta measures the volatility of a portfolio. the higher the volatility, the more risky the portfolio is.
risk premium measures the rate of return in excess of the risk free rate.
According to CAPM :
risk free rate + (beta x stock risk premium)
Beta is a multiplier of stock risk premium, so the higher the beta, the more there would be an increase in the stock risk premium
If a risk averse investor invests in a high beta stock, he would want extra or higher compensation for holding such a volatile stock. this extra compensation would be in the form of a higher risk premium.
Explanation:
Answer:
B. Agency is terminated by incapacity.
Explanation:
- The agency contract is a legal agreement that is were the first party agrees to the actions of the second party and the power of the agent is bound to the agreements of the principle. The principle is responsible for the agents and running the agency.
- The termination of the agency is due to the death or the incapacity of the individual or else the agency may be terminated by law.
I read in a book about Netflix that Reed Hastings was prompted to start Netflix when he had a large overdue (Around $40 in fees) for a DVD.
D) B2B marketers include manufacturers, intermediaries, institutions, and the government.