Answer: Modern portfolio theory takes this idea even further. It suggests that combining a stock portfolio that sits on the efficient frontier with a risk-free asset, the purchase of which is funded by borrowing, can actually increase returns beyond the efficient frontier.
Risk premium is defined as excess return over risk free rate by taking extra risk. A risk-free asset has zero risk, so risk premium on these assets is zero. As risk level of investment increases, risk premium on investment also increases.
The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope of the security market line (SML), a graphical representation of the capital asset pricing model (CAPM). CAPM measures required rate of return on equity investments, and it is an important element of modern portfolio theory and discounted cash flow valuation.
Explanation:
D. Scholarly article.
The scholarly article is most likely to be a reputable source, since the author is educated in the manner of what you are needed. The scholar is most likely to know what you are needing to know.
Answer:
Gross pay= $20,000
Explanation:
She takes $ 13,400.
the company deducted $200 as voluntary deductions.
She had $13600 after paying tax 32%which is equivalent to 68%
$ %
13600 68
x 100
x= 13600*100/68= 1360000/100= $20,000
Her gross pay is $ 20,000
Answer: a. Gather all the information
d. Be patient with the reaction
Explanation:
It is very important that before the conversation begins, that you have all the relevant information you will need to find out why they are so hostile to the new employee to avoid judging them prematurely and therefore putting them on the defensive which will not do well for the progress of the conversation. It will also help you detect any lies that they may have.
When the conversation is also going on along, let them explain themselves and be very patient with them as they do so. This way you will listen to respond not listen to react. This way you can hear their side of the story before making an informed decision.
