Answer: c. Risky assets into safer assets
Explanation:
The process of asset transformation refers to the conversion of risky assets into safer assets. Asset transformationa is simply a form of transformation in which financial institutions like banks use deposits in the generation of revenue through the pooling deposits in order to make loans. It has to do with transforming bank liabilities into bank assets.
Answer:
The firm set as the required rate of return for the project is 14.732%
Explanation:
For computing the required rate of return, the following formula should be used which is shown below:
= Risk free rate of return + (Beta × market risk premium) + adjustment
where,
Risk free rate of return is 4.1%
Beta is 1.19
Market risk premium is 7.8%
Adjustment is 1.35%
Now put these values to the above formula
So, the value wold be equal to
= 4.1% + (1.19 × 7.8%)+ 1.35%
= 4.1% + 9.28% + 1.35%
= 14.732%
The standard deviation is irrelevant. Therefore, it is not considered in the computation part.
Hence, the firm set as the required rate of return for the project is 14.732%
Answer:
C:an increase in both the inflation and real growth rates in the short run.
Explanation:
According to the AD-AS model, if the economy is initially at its long-run potential growth rate, then a temporary increase in the growth rate of investment spending will cause an increase in both the inflation and real growth rates in the short run.
Answer:
Skunkworks
Explanation:
The term skunkworks is mostly used in business and also the technical fields to describe a group that is within an organization that has high autonomy and have tasks that requires them to work on advanced or secret projects. They are allowed to operate outside the usual processes such that they have the freedom to come up with new ideas.
It includes the study of <span>employment in the economy.
A macroeconomic factor is a factor that is relevant to an expansive economy at the provincial or national level and influences a huge populace instead of a couple of select people. Macroeconomic factors, for example, financial yield, joblessness, expansion, reserve funds, and speculation are key pointers of monetary execution and are nearly checked by governments, organizations, and customers.
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