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
PilotLPTM [1.2K]
3 years ago
15

Casey has ​$1 comma 000 to invest in a certificate of deposit. Her local bank offers her 2.50​% on a​ twelve-month FDIC-insured

CD. A nonfinancial institution offers her 5.20​% on a​ 1twelve-month CD. What is the risk​ premium? What else must Casey consider in choosing between the two​ CDs?
Business
1 answer:
frutty [35]3 years ago
6 0

Answer:

the risk premium = return of the deposit - risk free deposit return

risk premium = 5.2% - 2.5% = 2.7% or $27 for a $1,000 CD

Besides the investment risk, Casey must also consider the inflation rate and taxes. The inflation rate lowers the real interest earned by Casey: real interest rate = nominal interest rate - inflation rate. And she must also find out how the return from the non-financial institution is taxed, if it can be taxed as capital gains or regular income.

You might be interested in
If a firm produces a return on assets of 15 percent and also a return on equity of 15 percent, then the firm:
dem82 [27]

Answer:

No debt of any kind.

Explanation:

Then the firm has “no debt of any kind” because the company has the equity multiplier ratio is 1.

We have given the return on assets is 15 % and the same return is on the equity that is 15%.

Thus, the equity multiplier ratio can be calculated by dividing the total assets / total equity.

Equity mulitplier ratio = Total Assets / Total equity.

8 0
3 years ago
Jerry has an insurance policy with a premium of $150 per month. In June, he’s in an accident and receives a bill with a total co
bazaltina [42]

$250

COVERAGE LIMIT-DEDUCTIBLE = $4000-$1500 = 2500

$2500/10 = $250

3 0
3 years ago
Looking at Channel 4’s strengths, their ability to appeal to different niche audiences is the highlight of the company. One of
Colt1911 [192]

Answer:

True

Explanation:

Remember, that the term 'company strength' is commonly used to refer to the overall advantages a company has.

Thus, when it was said that Channel has the ability to appeal to different niche audiences that they can guarantee a "16 to 34 year old ABC1 audience at peak viewing times.

Also, mention was made about the company receiving 17 Oscar nominations in the year 1994. All this facts highlights the company's strength.

7 0
3 years ago
Read the following sentences. Underline the subjects, and circle the prepositional phrases. The gym is open until nine o’clock t
pentagon [3]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

7 0
3 years ago
Christie temporarily lends her car to her friend, Matt. Subsequently, Matt is involved in an accident while driving Christie’s c
Llana [10]

Answer:

The correct approach will be Option A.

Explanation:

  • Liability insurance on something like a subjective insurance plan implements the driver no matter with whom the automobile would be conducted, actually given it's an allowed to sign up the vehicle. Liability insurance safeguards insurance premiums whenever an automobile controlled by somebody else is operated either by the insured. They would also normally be compensated according to their car insurance policies in a somewhat circumstance.
  • Besides, the compensation he maintains through his automobile is liability coverage for such a covered by insurance operating everyone else's vehicle. In many of these instances, even before driving on a highway, he doesn't own the subjective coverage could very well be implemented by the driver. Throughout the scenario mentioned, Matt was indeed killed in an accident whilst also trying to drive his friend's Christie vehicle.
  • Hence, Matt's homeowner's insurance liability coverage would then kick through first. The gross amount of liabilities is $80,000, according to the verdict. The personal injury allowance of Matt becomes limited to $200,000, adequate to be insured.

The latter choice does not fit the instance in question. So, "A. Matt's premium is primary and therefore will cover the full $80,000," is the right response.

3 0
3 years ago
Other questions:
  • Tara has started a new job and has been assigned to work on a team. She is anxious about getting along with her new team members
    12·2 answers
  • Inattentive Driving. While cutting class and driving off campus to check on her new dress for the upcoming formal, Molly, a busy
    12·1 answer
  • 1.) If you decide to be a tranchises and open a
    12·1 answer
  • Research studies indicate that:
    8·1 answer
  • Oil is an important input in producing plastic. If the price of oil increases, all else equal, we expect the supply of: a. plast
    5·2 answers
  • Cookies refer to:_______
    5·1 answer
  • What do firms stand to gain by increasing their market power
    11·2 answers
  • Concord has the following inventory information. July 1 Beginning Inventory 30 units at $19 $570 7 Purchases 80 units at $18 144
    10·1 answer
  • 1. Employees at a call centre have earned a bonus of 0.25% of their salary. The bonus that an
    10·1 answer
  • U. s. treasury securities considered to be risk-free because they have minimal, if any, ____ risk.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!