1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tanzania [10]
3 years ago
14

Over a certain period, large-company stocks had an average return of 12.14 percent, the average risk-free rate was 2.49 percent,

and small-company stocks averaged 17.09 percent. What was the risk premium on small-company stocks for this period?
a. 9.93%
b. 19.39%
c. 14.81%
d. 11.85%
e. 4.88%
Business
1 answer:
tatyana61 [14]3 years ago
6 0

Answer:

14.6 percent

Explanation:

Data provided in the question

The average return of large-company stock = 12.14 percent

The average risk-free rate of return = 2.49 percent

The average return of small-company stock = 17.09 percent

By considering the above information, the risk premium is  

= Average return of small-company stock - Average risk-free rate of return

= 17.09 percent - 2.49 percent  

= 14.6 percent

This is the answer but the same is not provided in the given options

We simply deduct the risk-free rate of return from the market return so that the risk premium could come

You might be interested in
The neoclassical view holds that long-term expansion of potential GDP due to _______________________ will determine ____________
boyakko [2]

Answer:

1.  economic growth;

2.  the size of the economy

Explanation:

According to the neoclassical standpoint on issues relating to macroeconomics, it is believed that, over a long period of time, the economy will vary around its potential GDP and its natural rate of unemployment.

Therefore, the size of the economy is defined by potential GDP, and wages and prices will adjust in an intelligent manner so that the economy will move back to its potential GDP level of output.

Hence, The neoclassical view holds that long-term expansion of potential GDP due to ECONOMIC GROWTH will determine THE SIZE OF THE ECONOMY

4 0
3 years ago
You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of in
Lubov Fominskaja [6]

Answer:

Option (d) , Bank 4 offers the highest amount after a year

Explanation:

The total amount from each of the interest rates can be expressed as;

A=P(1+r/n)^nt

where;

A=Future value of investment

P=Initial value of investment

r=Annual interest rate

n=Number of times the interest is compounded annually

t=number of years of the investment

a). Bank 1

P=x

r=6.1%=6.1/100=0.061

n=1

t=assume number of years=1

replacing;

A=x(1+0.061/1)^(1×1)

A=x(1.061)

A=1.061 x

b). Bank 2

P=x

r=6%=6/100=0.06

n=12

t=1

Replacing;

A=x(1+0.06/12)^(12×1)

A=x(1.005)^12

A=1.0617 x

c). Bank 3

P=x

r=6%=6/100=0.06

n=1

t=1

Replacing;

A=x(1+0.06/1)^(1)

A=1.0600 x

d). Bank 4

P=x

r=6%=6/100=0.06

n=4

t=1

A=x(1+0.06/4)^(4×1)

A=x(1+0.015)^4

A=x(1.061)

A=1.0614 x

e). Bank 5

P=x

r=6%=6/100=0.06

n=365

t=1

A=x(1+0.06/365)^(365×1)

A=1.0618

Option (d) , Bank 4 offers the highest amount after a year

7 0
2 years ago
The steam requirements of a manufacturing facility are being met by a boiler whose rated heat input is 5.5 × 106 Btu/h. The comb
e-lub [12.9K]

Solution:

Given Information,

Heat input is ( Q_{in} ) = 5.5 × 10^{6} Btu/h

Combustion efficiency of the boiler (n_{furnance}) = 0.7

Combustion efficiency after turn up (n_{furnance,now}) = 0.8

Operation Hour (t) = 5200h

Unit cost (c) = \frac{23 dollar}{10^{6}Btu }

Calculate heat output from the boiler  Q_{out} = Q_{in} x n_{furnance}

                                                                      = 5.5 x 10^{6} x 0.7

                                                                      = 3.85 x 10^{6} Btu/h

Calculate the heat input to the boiler after the tune-up

(Q_{in} ){new} = Q_{out} / (n_{furnance} ){new}

               = 3.85 x 10^{6} / 0.8

               = 4.8125  x 10^{6} Btu/h

Calculate the saved energy after the tune-up

(Q_{in} ){saved} = Q_{in} - (Q_{in} ){new}

                 = 5.5 x 10^{6} - 4.8125  x 10^{6} Btu/h

                 = 0.6875  x 10^{6} Btu/h

Calculate the annual energy saving ( E_{Saving} )

E_{Saving} = (Q_{in} ){saved} x t

           = ( 0.6875  x 10^{6} Btu/h ) ( 5200 hr/yr)

           = 3575 x 10^{6} Btu/h

Calculate the annual cost saving

Annual cost saving = E_{Annual saving} x Unit cost

                                = 3575 x 10^{6} Btu/h x \frac{23 dollar}{10^{6}Btu }

                                = 82225

4 0
3 years ago
Note how these emerging technologies are impacting organizations and what organizations can to do to reduce the burden of digita
Rashid [163]

The correct answer to this open question is the following.

You did not attach any text, article, or particular reference to answer this question. So we assume you are talking in general terms.

So being that the case, we can comment on the following.

It is true that emerging technologies are impacting organizations. Some businesses and organizations have been overwhelmed by technological advances. We are talking about new technologies that are transforming the workplace such as biometrics, analytics, robotics, big data, or artificial intelligence.

What organizations can do to reduce the burden of digitalization is having a gradual transformation. Not a sudden or abrupt change. A step by stape process is highly recommended. But procrastination at all. The digital transformation should start now.

It has to start with a process of training to make employees aware of the necessity of change.

6 0
3 years ago
When an administrative assistant reorders office supplies for a business, placing the same order as last month without checking
belka [17]

Answer:

The correct answer is straight rebuy.

Explanation:

The straight buyback is a routine, low participation purchase. A minimum of information is needed and consideration of alternatives is not necessary. This type of purchase is handled by the purchasing department and is usually acquired from a list of approved suppliers. Examples of straight repurchase are repeating purchases of office supplies, and small parts.

4 0
3 years ago
Other questions:
  • How long after a tax taking can a treasurer begin land court proceedings?
    6·1 answer
  • E15 3B (L0 1) (Stock Issued for Land) Twenty thousand shares reacquired by Sierra Land Inc. for $153 per share were exchanged fo
    6·1 answer
  • If 5 Swiss francs trade for $1, the U.S. price level equals $1 per good, and the Swiss price level equals 2 francs per good, the
    12·2 answers
  • Cleo is afraid of being viewed as weak, so she uses only her head when managing her team of employees. Which leadership task is
    10·1 answer
  • Wildhorse Co. reported net income of $176,240 for 2017. Wildhorse Co. also reported depreciation expense of $34,330 and a loss o
    9·1 answer
  • What is the fourth part to property rights?
    10·1 answer
  • Please look at the picture​
    9·1 answer
  • According to the overall staffing organizations model, hr and staffing strategy are driven by ______________.
    5·1 answer
  • Faith caught an employee putting a case of 1,000 single-serving tea bags in his car. Not wanting to create a scene, Faith smiled
    15·1 answer
  • ________ refers to how quickly information is reflected in the available prices for trading. Market efficiency Mechanical effici
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!