Answer:
D
Explanation:
Risk premium is the compensation given to investors for holding risky assets. The more risky an asset is, the higher the premium.
A rational investor would be unwilling to invest in a stock that offers zero premium because there is no compensation for the risk that is borne by the investor.
Risk premium is always positive.
Risk premium = expected rate of return of the asset - expected rate of return of the risk free asset.
The more risky the asset, the higher the expected rate of return. So, the expected rate of return of the asset would always be higher than the risk free rate. This makes risk premium positive
Answer:
His return on investment is negative 8.7%
Explanation:
Thomas purchased 2,500 shares of EKK at $54 per share (=$135,000 / 2,500).
He received $750 (= $0.30 x 2,500) in annual dividends.
He sold his 2,500 shares at $49 per share = $122,500
The total amount of money he received from his investment is $122,500 + $7
50 = $123,250, then we divide that by $135,000 = 0.913 - 1 = -8.7%
I think there should be an options to choose. Anyway I think, I've got what you mean. I think that the answer is: to achieve this standard, gregson's management strives to <span>maintain quality and efficiency</span>.
Answer:
1,C. Fixed
2.D. Variable
Explanation:
A fixed-rate loan has an interest rate that doesn't change throughout the life of the loan. Because the rate remains the same for the entire term, the monthly loan payment shouldn't change, resulting in a relatively low-risk loan. As you compare loan options, note whether or not loans feature fixed rates
.A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument.
The thing that Sally can do to ensure that she will have access to her money if the bank goes out of business is to keep her money in two financial institutions.
<h3>How to illustrate the information?</h3>
A bank is a place where one keeps money and other valuable.
In this case, to have access to her money if the bank goes out of business is to keep her money in two financial institutions.
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