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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Answer:
C. the less productive the process is.
Explanation:
Variability refers to the property when the given substance are highly probable to change and that the results accordingly change.
In that condition there is no drawn pattern for such change, as it might or might not change according to the expected scale and level.
In this, if there is high variability, then the results can be that the resulting process will be least productive, as there are so many uncontrollable changes.
Accordingly, since no proper management of the related process is possible, the results will not be productive.
Answer:
The correct answer is FALSE.
- First it's not sound investment advice to put all his savings into an investment because as the narrative rightly points out, he may have other needs.
- Second, high growth stock are also
- high risk
- they only pay in the long term only if the company is successful because dividends are re-invested which is one of the reasons the companies grow quickly.
Although they are high risk, they also have great advantages such as:
- High growth rate: this means if all goes well David will enjoy a good return on his investment;
- It's also a way to protect his money from erosion by inflation
What can David do?
Subject to the advise of a professional investment professional
- David needs to take into consideration his immediate needs, set aside some funds to take care of that.
- Invest the balance into a mix of high growth rate stock which are high yielding but risky and low growth rate but secure investment like government bonds.
- Start a small business by the side or get a job in the interim as he continues with his new life.
Cheers!
Answer:
The answer to this question is given below in the explanation section.
Explanation:
Constructive criticism is the process to offer valid and well-reasoned reponed or opinion about other works, it includes both positive and negative comments in a friendly way rather than an oppositional one.
There are four traits of constructive critisim.
So, the correct answer to this question is given below:
D: Positivity, Solution-Oriented, Specific, and private.
While other options are not correct because the four traits of constructive criticism are starting from positivity, solution-oriented, specific, and private.
Answer:
The interest revenue on note receivable that will be recognized at maturity is $1700.
Explanation:
The note is a three months note. So, the interest that will be charged on the note for the period the note was outstanding, i.e. three months from June to August. The rate that is given is an annual rate. Thus, the interest on note for three months period will be,
Interest revenue on note = 68000 * 0.1 * 3/12
Interest revenue on note = $1700
