Answer:
The risk premium on market is 8%
Explanation:
The CAPM or Capital Asset Pricing Model is used to calculate the required rate of return on a stock which is the minimum return that is expected or required by the investors to invest in a stock based on its systematic risk as measured by the beta of the stock.
The formula to calculate r under the CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the risk premium on market
To calculate the risk premium on market, we will input the available values for r, rRF and beta in the equation above.
0.158 = 0.07 + 1.1 * rpM
0.158 - 0.07 = 1.1 * rpM
0.088 / 1.1 = rpM
rpM = 0.08 or 8%
So, the risk premium on market is 8%
How much ever percent she cuts so will the value of her sales
Answer:
C. subsidizing: taxing
Explanation:
An activity generates a positive externality if the benefits of economic activities to third parties exceeds its costs.
Example of activities that generate positive externality are education and research.
Government ought to encourage the production of activities that generates postive externality. One of the ways this can be done is through Subsidy. Subsidy reduces cost of production and increases production.
An activity generates negative externality if the benefits of economic activities to third parties is less its costs.
An example of negative externality is pollution.
Government can discourage activities that generates negative externality by taxation. Taxation increases the cost of production and discourages production.
I hope my answer helps you
Answer:
Since half of his loss would be covered by insurance and he is not filing an insurance claim, he cannot take half of the loss.
For the half he can take, 4500, he must reduce it by 100 and then by 10% of his AGI. 4,500 - 100 - 5,000 = less than zero.
So he cannot deduct any of the loss.
<span>This person would be a "passenger comfort specialist.</span>
