Answer:
Risk Premium is 10%
Explanation:
Government treasuries represent risk free rate of return.
[tex]Risk Premium=R_{m}-R_{f}/tex] ,
where, [tex]R_{f} = Risk\ Free\ Rate\ Of\ Return/[tex]
[tex]R_{m} = Market\ Rate\ Of\ Return/[tex]
Risk Premium = 15 - 5 = 10%
Risk Premium is defined as return earned on market portfolio in excess of rate of return earned on risk free assets such as government treasury bonds.
So, Risk Premium refers to the compensation an investor expects to earn for assuming higher risk by investing in market portfolio instead of investing his money in risk free class of assets.
Answer: Option A
Explanation: In simple words, Short run budgets refers to the budgets which are made for a period of less than 12 months and long run budgets are made for a time period greater than one year.
Short run budgets are prepared for some specific assets such as supplying a new customer for one year.
Thus, from the above we can conclude that the correct option is A.
The net present value is 12,100. The investment should be made because NPV is positive
The present value of an investment's after-tax cash flows is known as the investment's net present value.
Businesses can make decisions using the NPV technique. It aids in not only comparing projects of the same size but also in determining whether a given investment is profitable or not.
While the net present value has advantages such as taking time worth of money into an account and assisting management in making better decisions, it also has drawbacks such as not taking hidden costs into account and being unable to be utilized by the company to compare projects of various sizes.
NPV =( Net annual cash flows x present value factor) - cost
NPV = (44,000 x 5,02 ) - $208,780 = 12,100
To know more about net present value refer to: brainly.com/question/17162144
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Answer:
c. -$1 billion and $3 billion.
Explanation:
GDP = C + I + G
20 = 15 + 2 + G
G = 20 - 15 - 2 = 3
The government spending is 3 billion. which makes only option c or d correct.
Now we need to solve for public savings:
Taxes - Goverment Spending = Public savings
2 - 3 = -1
the government runs with a 1 billion deficit.
This makes option c correc
Answer:
This was most likely caused by a shift in the aggregate supply curve to the left.
Explanation:
a recession is when the economy is declining and this can be caused by declining trade and industrial activity so if Real GDP decreases that means there was a decline in prices and a deflation in the market therefore this can be caused by increases in wages or the value of wages which can cause more consumption in the market and then prices fall, an decrease in physical stock which is like people employed where the cost of producing one more unit increases at a decreasing rate so firms end up not hiring more people.
