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harina [27]
3 years ago
8

On a particular risky investment, investors require an excess return of 7 percent in addition to the risk-free rate of 4 percent

. What is this excess return called?
Business
1 answer:
Finger [1]3 years ago
5 0

Answer:

Risk Premium

Explanation:

The Excess rate received over the risk free rate to a investor who invested in a risky asset is known as Risk premium. The concept of High Risk High Reward and Low Risk Low Reward applicable here. As in risky investment the investor is exposed to the risk of loss so, he/she requires some extra return for this exposure. Investing in risk free rate is much safer than in a risky investment.

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i hope this helps (:
3 0
2 years ago
"Which of the following statements are TRUE regarding the rights agent? I The rights agent usually handles the mechanics of a ri
nataly862011 [7]

Answer:

I, II, and III

I The rights agent usually handles the mechanics of a rights offering

II The rights agent is usually the existing transfer agent of the issuer

III The rights agent issues the additional shares upon presentation of the rights certificates with payment

Explanation:

Aright is defined as an offering to existing shareholders to purchase more shares. Usually there is a proportion of original shares the shareholder can now purchase. For example 1 to 5 shares means the shareholder can buy one share for every 5 old shares owned.

A rights agent is a person or entity that is responsible for maintaining records on behalf of rights holders.

When rights are issued, a rights agent is handles sales to shareholders, he is usually the initial transfer agent for the issuing company, and he issues the additional shares when payment and rights certificates are presented.

5 0
3 years ago
Who in the u.s. is responsible for maintaining money's purchasing power? the senate congress the board of governors of the feder
kkurt [141]

the board of governors of the federal reserve system

3 0
4 years ago
Economic freedom means more than being able to buy the things you want. It means that you have the freedom to choose ___________
mart [117]

Answer:

your career, your employer, and your job location.

Explanation:

The concept of economic freedom means, in addition to the power to choose what to buy due to the variety of goods and services available in a competitive market. Economic freedom in society qualifies the individual as an economic agent capable of using the resources he has to build his professional life, his career and choose his place of work.

4 0
3 years ago
______ is a specific measure of quality, representing 3.4 defects per million opportunities and is used to designate a set of me
DIA [1.3K]

Answer:

Six Sigma is a specific measure of quality, representing 3.4 defects per million opportunities and is used to designate a set of methodologies and techniques for improving quality and reducing costs.

7 0
3 years ago
Read 2 more answers
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