Answer:
Average real risk free rate = (1 + Nominal risk free rate / 1 + Inflation rate ) - 1
= (1 + 5% / 1 + 1.5%) - 1
= 1.0345 - 1
= 0.0345
= 3.45%
Average return on stock = Sum of annual returns / Number of years
= 13% + (-8%) + 16% + 16% + 10% / 5
= 0.47 / 5
= 0.094
= 9.40%
Average real returns = (1 + Average return on stock / 1 + Inflation rate) - 1
= (1 + 9.40% / 1 + 1.5%) - 1
= 1 + 0.0940 / 1 + 0.015) - 1
= 1.077832512 - 1
= 0.077832512
= 7.78%
Average real risk premium = Average real return - Average real risk free rate
Average real risk premium = 7.78% - 3.45%
Average real risk premium =4.33%
Answer:
a. decrease/lower
Explanation:
In the case when the rate of interest declines in the USA as compared with rest of the word, the demand of the dollar of the US would decrease as it represents the lesser demand for the assets with the lesser returns
Therefore as per the given situation, the option a is correct
hence, the same is to be considered
All the other options are incorrect
It is generally uncommon for people to decide a place of residence based on <u>E. credit score </u>
When people look for places to stay, they think about their:
- Lifestyle and what house it suits that
- Their needs from a place
- Their values and whether the place would support them
- Attitudes towards what kind of place they should live
People only think about the credit score when it comes to paying the rent of the place or being able to buy it. It is generally not a factor when selecting a place of residence initially.
In conclusion, most people do not select residence based on credit score.
<em>Find out more at brainly.com/question/19435264. </em>
Answer: B. Square feet of floor space occupied.
Explanation: Rent is usually charged and allotted based on the size of the space occupied,a bigger work space will be enough to occupy more raw materials, machines,offices,finished goods and other things.
The maintenance cost of using a bigger space will most likely be higher than a smaller work space, bigger work space requires more lightening,more ventilation etc which will definitely increase the amount allotted or spent in servicing and carrying our maintenance on this electrical items.
Answer:
C. The system is functioning correctly and providing accurate information
Explanation:
Reliability refers to the ability of a system or a machine to perform its intended function with minimal or nil breakdown. Consistency and validity of data from the performance of a system or a piece of equipment indicate its reliability. It is the possibility of failure-free operation of a system.
Reliability will, therefore, ensure a system is performing its function with minimal interruptions resulting from failures. It guarantees consistency in the results from operations. With reliability, production happens when it is needed.
