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FromTheMoon [43]
3 years ago
8

A stock has an average expected return of 10.8 percent for the next year. The beta of the stock is 1.22. The T-Bill rate is 5% a

nd the T-Bond rate is 3.4 %. What is the market risk premium
Business
1 answer:
uranmaximum [27]3 years ago
7 0

Answer: 4.7%

Explanation:

Expected return is calculated as:

= Risk free return + Beta ( Market risk premium)

10.8% = 5% + (1.22 × Market risk premium)

10.8% - 5% = 1.22market risk premium

5.8%/1.22 = market risk premium

Market risk premium = 0.058/1.22

Market risk premium = 0.047

Market risk premium = 4.7%

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The cyclical unemployment rate is defined as the ________ unemployment rates. The cyclical unemployment rate is defined as the _
ruslelena [56]

Unemployment is the result of workers losing their jobs, which, in turn, leads to an increase in cyclical unemployment due to an economic downturn, but if unemployment persists for many years, it can lead to structural unemployment.

  • the difference between the natural unemployment unemployment due to workers coming and going or searching for other work) and the current rate (the total amount of unemployed).
<h3 /><h3>The cyclical unemployment</h3>

The cyclical unemployment rate is the difference between the natural unemployment rate (unemployment due to workers coming and going or searching for other work) and the current rate (the total amount of unemployed). It's difficult to look at data and determine why each person is unemployed.

Therefore, a cyclical unemployment rate is the difference between the natural unemployment rate and the current rate.

learn more about cyclic unemployment from here: https://brainly.in/question/1388443

7 0
2 years ago
The text discusses three areas a firm must be concerned with in order to keep their best and brightest employees from leaving. T
den301095 [7]

Answer:

The correct answer is a. sorting/absorbing

Explanation:

The flight of talented employees is a situation that usually hurts companies, for that reason it is important to have growth plans that allow you to retain the people who generate value for the organization. If you focus directly on the classification, you are certain of who the projected employees are, and that in the short or medium term they can directly contribute to the growth of the company; for its part, absorption refers to the process of hiring employees who are already talented in search of a training process based on previous experiences.

4 0
4 years ago
You have ​$19,000 to​ invest, part at 6% and the rest at 7%. If x is the amount invested at 6 %6%​, write an algebraic expressio
dem82 [27]

Answer:

total annual income  = 1330 - 0.01x

Explanation:

given data

invest = $19,000

some part at =  6%

remaining part = 7%

x is  amount invested at =  6 %

solution

we know x part invested = 6 %

so ( $19,000 - x ) part invested = 7 %

so we get here total annual income from both investment that is

income = 6% x + ( 19000 -x ) 7%

so  total annual income  = 0.06x + ( 19000 -x) 0.07

total annual income  = 1330 - 0.01x

7 0
4 years ago
Mergers and acquisitions commonly introduce __________ risk, which may change how an organization operates.
Debora [2.8K]

Mergers and acquisitions commonly introduce financial risks that can change how the firm operates.

The main danger is financial; if mergers and acquisitions aren't done right, they can leave businesses with a heavy monetary load. Many mergers that go wrong involve excessive financial commitments that condemn the partnership to failure from the outset.

Risk management is necessary during the whole merger and acquisition process. Management of Merger & Acquisition risk; see due diligence. It's likely that you haven't properly undertaken Merger & acquisition risk management if any of the risks outlined in the preceding sentence are not on the due diligence agenda.

Although this is simply one aspect of due diligence, there is a tendency to think of it as an audit of the target organization. Your due diligence procedure is your Merger & acquisition risk management, in a larger sense.

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5 0
2 years ago
Nepresso sold all machine parts through ____________ channels
Serjik [45]

Answer:

general retail channel

6 0
3 years ago
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