Answer: i. Security A would have a higher risk premium than security B.
II. The likely range of returns for security A in any given year would be higher than the likely range of returns for security B.
Explanation:
From the question, we are informed that Security A has a higher standard deviation of returns than security B. Based on the above scenario, it should be noted that Security A would have a higher risk premium than security B since it has higher standard deviation and also, thee likely range of returns for security A in any given year would be higher than the likely range of returns for security B.
Answer:
Top 8 Factors Influencing the Determination of Wage Rates
Ability to Pay:
Demand and Supply:
Prevailing Market Rates:
Cost of Living:
Bargaining of Trade Unions:
Productivity:
Government Regulations:
Cost of Training:
The correct answer is B, $178,000. Meyer's current debt to capital ratio is 28 percent. This figure is arrived at by dividing total debt outstanding by total invested capital. In order to achieve the target debt to capital ratio of 55%, Meyer must add $178,000 of debt so that his total debt comes to $363,000.
