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3 years ago

The risk premium of a security is determined by its ________ risk and does not depend on its

Business

1 answer:

Neko [114]3 years ago

5 0

Answer: (B) Systematic, Unsystematic

Explanation:

The systematic risk is one of the type of investment and it is measured by investment return covariance in the market. The systematic risk is basically divided by market risk once it is calculated.

The premium risk of the security is mainly determine by the systematic risk and it is not depend upon its unsystematic risk.

The unsystematic risks is basically inherited from the specific industry and the risk can be reduced by the diversification.

Therefore, Option (B) is correct.

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How do you know if you would qualify for a degree, diploma or certificate ?

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3 years ago

Joe Jones has put in place a new set of performance metrics for the Logistics Department at his firm. He is convinced that these

AnnZ [28]

Answer:

Motivating objective

Explanation:

In simple words, motivating refers to encouraging others to perform a job or task efficiently. It is generally performed by the executive level of employees in the organisation. It is done by teaching others about the incentives and perks they will get by performing the job or by fearing them with punishment. Motivations can be seen as a behavioral charge in an individual to give their hundred percent while performing the assigned task.

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3 years ago

suppose the returns on long term corporate bonds and T-bills are normally distributed. Based on the values below answer the foll

postnew [5]

Answer:

32.35% ( the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent )

Explanation:

Given data for long-term corporate bonds

Standard deviation : 8.3%

mean = 6.2%

To calculate the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent ( USING THE NORM-DIST FUNCTION )

P( x > 10% ) = 1 - P(x<10%) = 1 - NORM-DIST (10,6.2,8.3,TRUE ) = 0.3235

= 32.35%

attached below is the missing part of your question

3 0

3 years ago

Suppose that an investor with a 10-year investment horizon is considering purchasing a 20-year 8% coupon bond selling for $900.

leonid [27]

Answer:

8.67%

Explanation:

PMT (Semi-annual coupon) = par value*coupon rate/2 = 1,000*8%/2 = 40

N (No of coupons paid) = 10*2 = 20

Rate (Semi-annual reinvestment rate) = 7%/2 = 3.5%

Future value of reinvested coupons = FV(PMT, N, Rate)

Future value of reinvested coupons = FV(40, 20, 3.5%)

Future value of reinvested coupons = $1,131.19

FV = 1,000

PMT (Semi-annual coupons) = 40

N (No of coupons pending) = 10*2 = 20

Rate (Semi-annual YTM) = 9%/2 = 4.5%

Price of the bond after 10 years = PV(FV, PMT, N, RATE)

Price of the bond after 10 years = PV(1000, 40, 20, 4.5%)

Price of the bond after 10 years = $934.96

Total amount after 10 years = Future value of reinvested coupons + Price of the bond after 10 years

Total amount after 10 years = $1,131.19 + $934.96

Total amount after 10 years = $2,066.15

Amount invested (Price of the bond now) = $900.

Total Annual Return = [(Total amount after 10 years / Amount invested)^(1/holding period)] -1

Total Annual Return = [($2,066.15/$900)^(1/10)] -1

Total Annual Return = [2.295722^0.1] - 1

Total Annual Return = 1.08665561792 - 1

Total Annual Return = 0.08665561792

Total Annual Return = 8.67%

7 0

3 years ago

A firm that produces bluetooth speakers collected the following data to determine their possible profits. What profit will bluet

Lostsunrise [7]

The profit will Bluetooth speaker sales bring this firm when it sells at the profit-maximizing level of output is $975

Profit-maximizing level

In economics, profit maximizing level of output means where its marginal cost (MC) just equals the product price and where marginal cost is increasing; that is, the MC curve is sloping upward.

Given

A firm that produces Bluetooth speakers collected the following data to determine their possible profits.

Here we need to find the profit will Bluetooth speaker sales bring this firm when it sells at the profit-maximizing level of output.

In order to find the profit-maximizing level of output for the Bluetooth, we have to subtract the maximum price by the minimum price.

For example let us consider $1000 be the maximum price of the Bluetooth and $25 is minimum price of the Bluetooth,

Then the profit-maximizing level of output is calculated as,

=> 1000 - 25

=> 975.

To know more about profit-maximizing level here.

brainly.com/question/14011960

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4 0

1 year ago