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mixas84 [53]
3 years ago
14

What do you think would happen to the expected return on stocks if investors perceived an increase in the volatility of stocks?

Assuming no change in tastes, that is, an unchanged risk aversion, investors perceiving higher risk will demand a higher risk premium to hold the same portfolio they held before. If we assume that the risk-free rate is unaffected, the increase in the risk premium would require a (Click to select) expected rate of return in the equity market.
Business
1 answer:
olya-2409 [2.1K]3 years ago
4 0

Answer:

Higher is the correct answer.

Explanation:

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How can information-management companies help you as an entrepreneur? A. They can help you widen your customer base. B. They can
sergeinik [125]

Answer:

A. They can help you widen your customer base.

Explanation:

5 0
4 years ago
Read 2 more answers
Sales total $500,000, and fixed costs total $300,000. The contribution margin ratio is 68%. Profit = $
marin [14]

Profit = $40,000

Given,

Total sales are $500,000

Total fixed costs are $300,000

Contribution margin ratio is 68%

Solution:

Profit = Total Sales × Contribution margin ratio − Total Fixed costs

         = $500,000 × 68% − $300,00

           =$340,000 −$300,000

Profit =$40,000

Profit:

Profit; also known as net income is the financial gain acquired when the amount of revenue generated by a company exceeds costs and expenses. Profit is the bottom line of a company′s income statement that shows the financial performance during the period.

Learn more about contribution margin :

brainly.com/question/18594744

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8 0
1 year ago
Project 1 requires an original investment of $125,000. The project will yield cash flows of $50,000 per year for 10 years. Proje
mario62 [17]

Answer: $126,613

Explanation:

Net Present value of Project A is:

= Present value of $50,000 annuity + Present value of residual value - Initial investment

Present value of $50,000 annuity:

= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate

= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%

= $248,382

Present value of residual value:

= 8,000 / ( 1 + 12%)⁸

= $3,231

Net present value

= 248,382 + 3,231 - 125,000

= $126,613

6 0
4 years ago
Suppose that the economy enters into a recession and that, as a result, Rusty Z. Wrench loses his job as a delivery truck mechan
tangare [24]

Answer:

C. Cyclically unemployed

Explanation:

Cyclically unemployed is when workers lose their jobs because of downturns in the business cycle

8 0
3 years ago
Marketers are viewing information not only as an input for making better decisions but also as​ a(n) ______________.
Allushta [10]

Marketers are viewing information not only as an input for making better decisions but also as​ a(n) ______________.

Important strategic asset and marketing tool

4 0
4 years ago
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