Answer:
market premium = 0,0781 = 7.81%
Explanation:
We have to calculate the market return and then calcualte the premium as the difference between the expected return on the market and the risk-free rate:
We multiply each outcome by the stock weight. and then for the probability of occurence of that state of economy
Calculations for boom:
Change of boom x (weighted outcome A + weighted outcome B + weighted outcome C)
0.25 x (0.45 x 0.15 + 0.45 0.27 + 0.1 x 0.05) = 0.05
![\left[\begin{array}{cccccc}Stock&&B&A&C&Totals\\Weights&&0,45&0,45&0,1&&Boom&0,25&0,15&0,27&0,11&0,05&Normal&0,65&0,11&0,14&0,09&0,078975&bust&0,1&-0,04&-0,19&0,05&-0,00985&&&&&return&0,119125&\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccccc%7DStock%26%26B%26A%26C%26Totals%5C%5CWeights%26%260%2C45%260%2C45%260%2C1%26%26Boom%260%2C25%260%2C15%260%2C27%260%2C11%260%2C05%26Normal%260%2C65%260%2C11%260%2C14%260%2C09%260%2C078975%26bust%260%2C1%26-0%2C04%26-0%2C19%260%2C05%26-0%2C00985%26%26%26%26%26return%260%2C119125%26%5Cend%7Barray%7D%5Cright%5D)
market expected return 0,1191
Market premium: 0,1191 - 0,041 = 0,0781
Answer:
a rebate because companies like that and paint companies give out rebates
Answer:
Net present value of machine is $5,561
Explanation:
Net present value is the method of calculating net of cash inflows and outflows in present value term using discounting of the cash flow by required rate of return.
Net Present Value of the machine is $5,561
All the calculation and workings are attached with this question please find it.
Answer: C. Reflects the inability to exclude an Individual from the benefits of someone else's purchase.
Explanation:
The Free-rider problem is a concept in economics that describes the fact that sometimes people benefit from goods and services that they wither did not pay for or underpaid for.
There has been a failure to exclude those individuals who are free-riding from the benefits of goods and services that other people are paying for. A simple example of the free-rider phenomenon is using Wikipedia. Most of those who use it do not contribute or pay for its upkeep in any way yet reap the benefits of its extensive information.
Answer:
North-West Electric
Quality Department
If Ray decided to delayer his organization, what he would be doing is:
a. Reducing the number of job levels to achieve flexibility in assignments.
Explanation:
Delayering helps to cut some management layers from the organizational structure. It reduces the administrative costs of running the entire organization. Delayering helps the organization to make quicker decisions instead of following bureaucratic processes. It also increases the effectiveness and efficiency of the organization. Finally, it enables the staff to become more flexible and willing to step outside their established roles.
