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:
$22,569.48 is amount i must have to deposit today
Explanation:
FV = Future Value
, PV = Present Value
, r = rate of interest
, n= no of period
PV = FV / (1 + r )n
PV = 32000 / (1 + 3%)^4*(1+3.6%)^3
PV= $32,000/ (1 + 0.03)^4*(1+0.036%)^3
PV= $32,000/ (1.03)^4*(1.036%)^3
PV= $32,000/ (1.03)^4*(1.036)^3
PV= $32,000/ 1.12550881 * 1.111934656
PV= $32,000/ 1.251492251
PV = $22,569.47514
PV = $22,569.48
$22,569.48 is amount i must have to deposit today
Answer:
Explanation:
the fruit cola should be discontinued as it has decreased the net income by$1275000
check the attached file bellow for further explanation
Answer:
The correct answer is:
- Conduct monetary policy;
- Ensure that the financial system is stable;
- Provide banking services to commercial banks, depository institutions, and the federal government.
Explanation:
A central bank is the apex monetary authority in a country. It plays several crucial roles in the smooth working of the economy.
- A central bank issues currency on behalf of the government.
- It formulates monetary policy on behalf of the government.
- It acts as a banker for the government.
- It acts as a banker for commercial banks.
- It supervises all financial institutions.
The role of providing services to businesses and consumers is played by commercial banks. Fiscal policy is formulated by the government. The responsibility of ensuring the growth of the economy also falls with the government.
