Answer:
Risk-free rate (Rf) = 2.5%
Market return (Rm) = 12%
Beta (β) = 1.0
Risk-premium = Market return - Risk-free rate
= 12 - 2.5
= 9.5%
Explanation:
Risk-premium is the difference between market return and risk-free rate.
Answer:
The correct option is A
Explanation:
Under the Article 3 of the UCC (stands for Uniform Commercial Code), with few modifications, that govern or regulate the negotiable instruments.
The UCC describe the negotiable instrument as the instrument which is in writing as well as unconditioned promise or an orders of making a payment of the fixed amount of money on a particular date.
So, the negotiable instruments are the promissory notes, checks, COD (Certificate of Deposit) and drafts.
The price index in year 2 is 158.7 (option a).
<h3>What is the price index?</h3>
Price index is used to measure how price change over a period of time. Price index is used to measure inflation. An example of a price index is the consumer price index. The consumer price index measures changes in the price of a basket of goods.
Price index in year 2 = ( 1 + inflation rate) x price index in year 1
(1.24) x 128 = 158.7
To learn more about price index, please check: brainly.com/question/26382640
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Answer:
Option D
Explanation:
In simple words, moral hazard refers to the situation when an individual do not act with full responsibility due to the fact that any loss from their behavior will be borne by some third party.
Thus, by assessing the employees before employment by a test will help to decide the employer if the individual is worthy of the job or not. Thus, efficient employees will be selected and less mistakes will occur.
Answer:
a. Plan I is better is we drive 300 miles in a day.
b. 150 miles.
Explanation:
a. if mileage is 300 then rental charges will be,
Plan I : $36 + 17 cents * miles
$36 + 0.17 * 300 = $41.10.
Plan II : $24 + 25 cents * miles
$24 + 0.25 * 300 = $99.00
Plan I total cost for 300 miles is $41.10 whereas Plan II total cost for 300 miles is $99.00. Plan I is better plan and cost effective.
b. For mileage (m) calculation we will use equation;
Plan I = Plan II
$36 + 0.17m = $24 +0.25m
0.25m - 0.17m = $36 - $24
m = $12 / 0.08
m = 150 miles.
