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Nezavi [6.7K]
3 years ago
12

If the price of money (e.g., interest rates and equity capital costs) increases due to an increase in anticipated inflation, the

risk-free rate will also increase. If there is no change in investors' risk aversion, then the market risk premium (rM - rRF) will remain constant. Also, if there is no change in stocks' betas, then the required rate of return on each stock as measured by the CAPM will increase by the same amount as the increase in expected inflation.
a) true
b) false
Business
1 answer:
goldenfox [79]3 years ago
7 0
It may be true but double check
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A bond will sell at a premium when its coupon interest rate: is lower than the market interest rate on similar bonds. equals the
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A bond will sell at premium when its coupon interest rate <u>exceeds the market interest rate on similar bonds.</u>

Explanation:

Premium bonds are the bonds that are trading above par in the market. Further on the bond would trade on premium only when it offers a coupon rate exceeding the market rate that is being offered on similar bonds.

In simple lay man's language, the term premium and discount can be understood to carry a crude definition of high and low demand. When the demand would be high, the bonds would fetch a higher value and vice-versa.

Thus Bonds would highly be valued when it is paying interest that is greater than the interest prevailing in the market contemporarily.

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3 years ago
Which is true about the workplace of Construction workers? It can change. It is never outdoors. It can be in an existing buildin
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Answer:

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Explanation:

Construction is not at a desk.

6 0
3 years ago
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What is the objective of the last step in the ethical decision-making framework? Multiple Choice to brainstorm any alternative c
I am Lyosha [343]

Answer:

B. To weigh the various alternatives and choose a course of action

Explanation:

The major steps involved in a proper decision-making process include; Identifying the problem, understanding the problem by obtaining the necessary information, developing alternatives, choosing the best alternative that would address the ethical issue at hand, and implementing the best alternative.

The aim of the entire process of decision-making would be faulted if at the end, a course of action is not taken. The decision made at the end of the day, should address the initial concern raised. This decision would also need to be reviewed to ensure that it is the right step.

Determining ways to maximize profit for the company may not be the issue at hand, as several factors could inform the decision making process.

5 0
3 years ago
Three types of business​ organizations) Limited partnerships have two classes of partners. The _____ limited general partner act
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Answer:

General; limited; limited.

Explanation:

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2. Limited partner: it is a type of partnership in which people come together and have an agreement to do business but the involved partners only contribute financially and solely responsible to the amount of money they invested.

Hence, the general partner actually runs the business and faces unlimited liability for the​ firm's debt, while the limited partner is only liable up to the amount the limited partner invested.

8 0
3 years ago
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White raven [17]
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Hope this helps! :)
3 0
3 years ago
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