The market risk premium of Fund P will be 5.5%.
<h3>How to calculate the market risk premium?</h3>
It should be noted that as per CAPM, the return in stock will be:
= Risk free rate + Beta × Market risk premium
8.90% = 4.5% + 0.8 × Market risk premium.
Market risk premium = 5.5%
In conclusion, the market risk premium of Fund P will be 5.5%.
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Klippert is best described as a SOLE PROPRIETORSHIP.
A sole proprietorship business is also called a one man business. In this kind of business formation, the owner of the business is responsible for starting the business and getting it ruining. The owner draws up the business plan, get the capital and see to the day to day activities of the business.
Answer: Internal control system are required by Sarbanes-Oxley (SOX) to be documented and certified if the company's stock is traded on an exchange (a public company).
Explanation:
Internal controls are the procedures mechanisms and rules implemented by a business to ensure the integrity of its accounting and financial information, promote accountability, and also prevent fraud.
Besides complying with regulations and law and hindering employees from commiting fraud or stealing assets, internal controls can improve operational efficiency through the improvement in the timeliness and accuracy of financial reporting.
Internal controls are a vital business function for every company in the United States since the accounting scandals that occurred in the early 2000s. The Sarbanes Act of 2002 was to improve accuracy of corporate disclosures and protect investors from fraudulent activities.
The groups that will increase as a percentage of the total US workforce over the next decade are Asian, Hispanic and African-American youth, ages 16 to 24. This increase may be due to migratory factors.
<h3 /><h3>What are migratory factors?</h3>
It corresponds to the different variables that contribute to the increase in immigration, causing individuals to leave their countries of origin in search of more opportunities elsewhere. The migratory factors are:
- Economics
- Sociocultural
- Politicians
- Demographics
Therefore, the total US workforce will be highlighted in the next decade by different different ethnic groups due to the large migratory flow that the country faces by individuals from Latin America, Asia and African Americans.
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