Answer:
The expected market risk premium is 9.20%
Explanation:
In order to calculate the expected market risk premium we would have to calculate the following formula:
expected market risk premium=(Rs-Rf)/β
Rf=3.7%
β=1.28
Rs=15.47%
expected market risk premium=(15.47%-3.7%)/1.28
expected market risk premium=9.20%
The expected market risk premium is 9.20%
Insurance is a coverage that assesses the risk of a certain item/person. If that item/person is in good condition, your insurance will be lower because it's less likely it'll get damaged.
This is why if you have a bad driving history, your car insurance is high (as there is a high risk).
If you were to instal an alarm, live in a safe neighbourhood or choose not to install a swimming pool you would actually reduce your insurance.
If you have an alarm, you are less likely to have stuff stolen (safer = less risk).
Living in a safe neighbourhood is safer = less risk.
Not installing a pool means your property remains the same value (putting a pool could increase it), higher risk of someone drowning in the pool, or hurting themselves. So by not building the pool, you'll have a safer environment = less risk.
If you build your house in a floodplain, the chance of your house getting damages by a flood is very very high, so you will have to pay more as there is an increased risk.
Investing in stocks, maintaining prices and avoiding inflammation.
Answer:
Capital loss = $(5.46)
Explanation:
<em>Return on investment would be the proportion of the amount invested that is earned as profit. </em>
<em>Profit here includes dividends earned plus capital gains less broker's commission.
</em>
<em>Capital gains/(loss) represents an appreciation/(depreciation) in the stock value. It is usually measures by the change in the stock value over the investment period under focus</em>
Capital gain/loss on stock = stock price at the end - stock price at the beginning
Stock price at the end= 48.78
Stock price at the beginning = 54.24
Capital loss = (48.78 - 54.24) = $(5.46)
The dividend would not be included simply it is not a capital item
Capital loss = $(5.46)
