The maturity risk premium on the 2-year Treasury security is C. 1.39%
Using this formula
rd = r* + IP + MRP
Where
rd represent Required rate of return on 2-year Treasury Security = 6 75%
r* represent real risk free return = 3.18%
IP represent Inflation Premium = 2.18%
MRP represent Maturity Risk Premium
Let plug in the formula
6.75% = 3.18% + 2.18% + MPR
6.75%=5.36%
MRP=6.75% -5.36%
MRP = 1.39%
Inconclusion the maturity risk premium on the 2-year Treasury security is C. 1.39%.
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Answer:
correct answer is Strategic allies
Explanation:
Strategic allies is a arrangement between 2 or more than 2 organization for undertaking mutual beneficial projects even both retain their independence.
as they have less complex than a joint venture
and for improving their product and development competitor in the market , they can enter into a strategic alliance
so as that both organizations can work on common coal with benefit
so correct answer is Strategic allies
Answer:
D
Explanation:
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
If good X is a normal good and the consumers income increases, the demand for good X would increase
It would have been that the Law of demand not supply that didn''t hold
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
Answer:
Correct option is 6.59
Explanation:
Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:



= $6.59
Therefore, Stock's price in the beginning of the year is $6.59.
Answer:
Greater than
Explanation:
Answer 1:
If the index number used to calculate prices is positive, then it shows that price level in country B is greater than the price level in Country A which is used as the base year. Thus, the blank can be filled by Greater than.
PPP adjusted GDP in this case in country B will be less than its nominal GDP as price level is higher.