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
ZanzabumX [31]
3 years ago
13

Over a certain period, large-company stocks had an average return of 12.59 percent, the average risk-free rate was 2.58 percent,

and small-company stocks averaged 17.45 percent. What was the risk premium on small-company stocks for this period
Business
1 answer:
suter [353]3 years ago
6 0

Answer:

The answer is 14.87%

Explanation:

Solution

Given that:

A large company stock had an average return of =12.59%

The average risk free rate = 2.58%

A small company stocks average is =17.45

The next step is to find the risk premium on small-company stocks for this period

Thus,

The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate

So,

Risk premium on small-company stocks = .1745 - 0.258

=0.1487

Therefore the risk premium on small company stocks for the period was 14.87%

You might be interested in
Perhaps the most important reason that u.s. companies have moved industrial production abroad is?
nignag [31]

Perhaps the most important reason that u.s. companies have moved industrial production abroad is that the labor of the other nation is paid the low wages than the labor wages in US.

Job outsourcing occurs when U.S. companies hire the foreign workers instead of Americans.

Job outsourcing can help American companies to compete in the economy by keeping prices low, but simultaneously it has a negative effect on

America has lost local jobs to different countries labor such as  China, Mexico, India, and other countries with lower wage standards.

Companies outsource domestically as well , they do not rely on the other countries completely U.S. employment but they have been increasing their reliance on freelancers or  temp workers, as well as the part-timers.

To know more about job outsourcing here:

brainly.com/question/4129759

#SPJ4

8 0
2 years ago
How can you maintain a balance between high-risk and low-risk investments?
ch4aika [34]
"By diversifying your investments" is the way among the choices given in the question that you can <span>maintain a balance between high-risk and low-risk investments. The correct option among all the options that are given in the question is the first option or option "A". I hope the answer helps you.</span>
7 0
3 years ago
Read 2 more answers
How do you solve for an owner's equity​
olganol [36]

Answer:

add up all of the business assets and deducting all of its liabilities.

5 0
2 years ago
Josh bought a bond with a par value of 1,500 from company ABC. The bond pays twenty annual coupons of 90 and matures at the end
ElenaW [278]

Answer: c

Explanation:

3 0
3 years ago
New York passed a "transport" law that prohibited the transport of live cattle across its borders.
madreJ [45]

Answer:

The isn't in the constitution against it.

7 0
2 years ago
Other questions:
  • Based on an annual disposable income of $40,000, calculate the average amount o money a person would save in japan; in the unite
    11·1 answer
  • Parr Hardware Store had net credit sales of $6.5mil and cost of goods sold of $5mil for the year. The Accounts Receivable balanc
    12·1 answer
  • TB MC Qu. 6-70 Awtis Corporation has a margin of ... Awtis Corporation has a margin of safety percentage of 25% based on its act
    14·1 answer
  • Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $26,000 with an adjusted basis
    6·1 answer
  • On May 1, 2016, Meta Computer, Inc., enters into a contract to sell 5,000 units of Comfort Office Keyboard to
    5·1 answer
  • Russell Container Corporation has a $1,000 par value bond outstanding with 30 years to maturity. The bond carries an annual inte
    15·1 answer
  • Complete the sentence. As _____ increases, specialization increases as well
    15·2 answers
  • . Define corporate-level strategy. What are the different levels of diversification firms
    14·1 answer
  • Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance
    14·1 answer
  • Circuit Pro, a manufacturer of electrical circuits, wants to decrease the per-unit cost of making its products. Which incentive
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!