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
ABC Company sells its 4G SD memory card for $ 15 per unit. The unit production cost is $ 3 and unit labor cost is $ 5. The packa
Tomtit [17]

Answer:

$93,750

Explanation:

Contribution margin=15-(5+3+3)=4

Fixed Costs=$60,000+$40,000=$100,000

Break even point  in units=$100,000/4=25,000

Break even point in $=25,000/(4/15)=$93,750

7 0
3 years ago
Read 2 more answers
When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the m
Sergeeva-Olga [200]

Answer:

B. Growth.

Explanation:

The growth stage is the period during which the product inevitably and progressively gains acknowledgment among buyers, the industry, and the more extensive overall population. During this stage, the product or the development gets acknowledged in the market, and subsequently deals and incomes begin to increment.

7 0
3 years ago
Lana Reid is an accounting clerk at Tenity Enterprises who is paid $18.15 per hour. During a week’s pay period, she worked 39 ho
butalik [34]

Answer:

$720.25

Explanation:

Given data:

Lana salary per hour = $18.15

total hour of work by her is 39 hr 41  minutes

we know from hundredth hour pay method

hundredth hr for 41 mints is = \frac{(41}{60}) \times  100 = 68.33

so we have  39 hrs 41 minutes that can be written as = 39.6833

So, salary for 39.6833 is = $18.15 \times 39.6833 = $720.25

4 0
3 years ago
The vice president of operations of your company, which makes packaged foods, is thinking about benchmarking manufacturing proce
disa [49]

Answer:

The correct answer is letter "C" and "D": Benchmarking shows the solutions others have found for common problems; Benchmarking allows companies to review their internal processes in an unbiased fashion.

Explanation:

Benchmarking is an analysis that companies make of the best performer in their industries. The objective is to compare the techniques and processes to the top entity to find out which practices can be implemented in the firms to improve their efficiency and effectiveness.

<em>For the comparison to be accurate, the firm must make an unbiased study of its current method of operations. Only then, the firm can review which problems it has in common with the top-industry company and how this corporation overcame the issues.</em>

4 0
3 years ago
Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an in
wel

I need points so dont mind wat I'm putting

5 0
2 years ago
Other questions:
  • Which organization provides leadership for the federal reserve system? board of governors congress department of the treasury fe
    5·1 answer
  • Pinder co. produces and sells high-quality video equipment. to finance its operations, pinder co. issued $25,000,000 of five-yea
    7·1 answer
  • Which of the following is a disadvantage of the first-mover strategy?
    13·1 answer
  • Leaf Lovers Garden Centers is a chain of discount gardening stores throughout the United States. Top management realizes that am
    10·1 answer
  • ABO purchased a truck at the beginning of 2018 for $140,000. They sold the truck at the end of 2019 for $95,000. If the expected
    7·1 answer
  • BJ Company's net working capital and all of its expenses vary directly with sales. The firm is currently operating at 86 percent
    12·1 answer
  • According to the growth accounting studies, if you lived in a country where illiteracy was high and 40% of the children left sch
    5·1 answer
  • At the end of the month, you have only $10 left in your checking account. You deposit your $200 pay­check from your part-time wa
    6·1 answer
  • The ________, which replaces workers with technology, is another cause of the changes in the job market.
    5·1 answer
  • When one company acquires control of another, how are the acquired company's assets and liabilities recorded?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!