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
prohojiy [21]
2 years ago
9

Over the past five years, Teen Clothing stock produced returns of 18.7, 5.8, 7.9, 10.8, and 11.6 percent,respectively. For the s

ame five years, the risk-free rate 5.2, 3.4, 2.8, 3.4, and 3.9 percent, respectively.What is the arithmetic average risk premium on Teen Clothing stock for this time period?A. 6.89 percentB. 7.01 percentC. 7.22 percentD. 7.34 percentE. 7.57 percent
Business
1 answer:
Alexandra [31]2 years ago
8 0

Answer:

The correct answer is  C. 7.22 percent

Explanation:

To find the arithmetic risk premium for the 5 year period, the formula is

Average risk premium for the period =  Sum of risk premium for each year /  number of years = ∑ra(i) - rf(i) / n

ra = asset or investment return / 100

rf = risk free return / 100

Where i represents each year.

Sum of risk premium for each year = (0.187 - 0.052) + (0.058 - 0.034) + (0.079 - 0.028) + (0.108 - 0.034) + (0.116 - 0.039) = 0.361

Average risk premium = 0.361 / 5 = 0.0722 = 7.22 / 100 = 7.22 percent

You might be interested in
Brian really likes cars. He has a job that is far away from where he lives . Brian is buying a new car. After looking at many di
suter [353]

Answer:

Rational

Explanation:

8 0
2 years ago
Read 2 more answers
If company A has higher TEI than company B, then company A has than company B
Anna007 [38]

its all da same because it just a company

3 0
3 years ago
Tom rented an apartment from margaret on a month-to-month basis, with rent due on the first of the month. this type of tenancy i
Alborosie
False. 

This is a periodic tenancy because Tom, as the tenant, may rent the apartment for successive periods under his lease, despite being "month-to-month." A tenancy at will, however, allows either the landlord or the tenant to terminate the arrangement at any time because there is more flexibility in the arrangement.

One key difference is the issue of the tenant's notice to vacate the apartment. Under periodic tenancy, the law typically requires the tenant to give at least one period (here, one month) notice to the landlord of the tenant's wish to leave the property. No such notice requirement is typically found within a tenancy at will. 
3 0
3 years ago
The federal reserve has a number of ways to influence the supply of money. the federal reserve can influence the interest rate t
pentagon [3]
A savings<span> and </span>loan<span> association, or thrift institution, is a financial institution that ... As such, many </span>people<span> were either perpetually in debt in a continuous cycle of. The most important purpose of </span>savings<span> and </span>loan<span> associations is to </span>make<span>. </span>savings<span> and </span>uses<span> these </span>funds<span> to </span>make<span> long-term amortized </span>loans<span> to </span>home<span> ...</span>
8 0
2 years ago
Read 2 more answers
A salesperson working for a firm that operates on the basis of exclusive sales territories must _____.
Alisiya [41]

A salesperson working for a firm that operates on the basis of exclusive sales territories must <u>consider whether the prospect is eligible, based in location or customer type, to purchase from him or her</u>.

A salesperson is responsible for greeting customers, helping them find items in the store, and calling them to purchase. To be successful as a salesperson, you need excellent communication skills. Great salespeople meet their sales goals while being polite and helpful to their customers.

Definition a salesperson is a person who sells goods or services. An example of a seller is someone who sells cars. salesman. A person engaged in the sale of goods or services.

A great salesperson should offer customers more than an inspiring sales pitch. He is an enthusiastic and resilient person who understands the needs of his customers, shows empathy, and takes the time to sell his products with confidence.

Learn more about Salesperson  here: brainly.com/question/24951536

#SPJ4

5 0
1 year ago
Other questions:
  • You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance ma
    10·1 answer
  • Which of the following is a characteristic protected by the anti-discrimination laws?
    11·1 answer
  • Conversion costs are:_______.
    8·1 answer
  • Residential Investment Payments of Factor Income to the rest of the world National Income Inventory Adjustment 0.00 Personal Con
    14·1 answer
  • The term white-collar crime was coined by sociologist ________ to refer to crimes that people of respectable social status commi
    14·1 answer
  • A yearminusend review of Accounts Receivable and estimated uncollectible percentages revealed the​ following:
    15·1 answer
  • Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." The 100 cases is a typo, so after signing th
    12·2 answers
  • Bababooey.................................................................
    13·2 answers
  • The following information was taken from the records of Roland Carlson Inc. for the year 2017: income tax applicable to income f
    12·1 answer
  • Which of the following strategies can a country use to keep its products inexpensive for consumers in the U.S.?
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!