The maturity risk premium on the 2-year Treasury security is C. 1.39%
Using this formula
rd = r* + IP + MRP
Where
rd represent Required rate of return on 2-year Treasury Security = 6 75%
r* represent real risk free return = 3.18%
IP represent Inflation Premium = 2.18%
MRP represent Maturity Risk Premium
Let plug in the formula
6.75% = 3.18% + 2.18% + MPR
6.75%=5.36%
MRP=6.75% -5.36%
MRP = 1.39%
Inconclusion the maturity risk premium on the 2-year Treasury security is C. 1.39%.
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Answer:
DR Cash $589
DR Credit Card expense $31
CR Sales $620
<em>(To record sales via credit card)</em>
<u>Working</u>
Cash
= 620 * ( 1 - 5%)
= $589
Credit Card Expense
= 620 * 5%
= $31
A national health<span> insurance </span>system<span>, or single-payer </span>system<span>, in which a single government entity acts as the administrator to collect all </span>health care<span> fees, and pay out all </span>health care<span> costs. Medical services are publicly financed but not publicly provided. Canada, Denmark, Taiwan, and Sweden </span>have<span> single-payer </span>systems<span>.</span>
Answer:
A. can afford to take on additional risk; increases
Explanation:
Saying that Risk and Return go hand in hand, tells us that you <u>can afford to take additional risk </u> as the length of the investment horizon <u>increases</u>. Increasing the length of the investment horizon increases the ability to take on additional risk because in the long run the investment pays off while it may be choppy in the short time horizon.
Answer: Production is characterized by significant economies of scale is not an assumption of perfect competition (A)
Explanation:
A perfect competition is a form of market structure that has many buyers and may sellers. In a perfect competition, there is a free entry and exit for producers as there is no barrier.
Also, firms are price takers as no producer can influence the price of the goods in the market unlike in an imperfect competition which is a price maker as producers can influence price. Firms also sell identical products that are the same in quality, size etc.
In a perfect competition, production is not characterized by significant economies of scale. That is an assumption that can be found in monopoly.
Therefore, option A is the right answer.
