Answer: Modern portfolio theory takes this idea even further. It suggests that combining a stock portfolio that sits on the efficient frontier with a risk-free asset, the purchase of which is funded by borrowing, can actually increase returns beyond the efficient frontier.
Risk premium is defined as excess return over risk free rate by taking extra risk. A risk-free asset has zero risk, so risk premium on these assets is zero. As risk level of investment increases, risk premium on investment also increases.
The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope of the security market line (SML), a graphical representation of the capital asset pricing model (CAPM). CAPM measures required rate of return on equity investments, and it is an important element of modern portfolio theory and discounted cash flow valuation.
Explanation:
Answer:
Annual withdraw= $143,023.66
Explanation:
Giving the following information:
Present value (PV)= $2,000,000
Number of periods (n)= 57
Interest rate (i)= 7% a year
<u>To calculate the annual withdrawal, we need to use the following formula:</u>
Annual withdraw= (PV*i) / [1 - (1+i)^(-n)]
Annual withdraw= (2,000,000*0.07) / [1 - (1.07^-57)]
Annual withdraw= $143,023.66
Answer:
The answer is "choice a"
Explanation:
In the given question the missing choices is added in attached file please find it.
The additional output produced through hiring an extra item of such an input reflects the marginal product (MP). For the very first time. for example, its marginal labor productivity was increased output generated by recruiting additional work.
This law diminishing marginal returns as more as units that even the marginal result of even an input, that is hired input.
In other words, any additional work input would generate less than a previous employee because recruiting additional workers decreases expected revenue on jobs, the laid-off of employees, which means the Labor would grow expected revenue.
In Japan is laying off fewer employees even despite the slowdown it continues to produce strong outputs. The lower-priced revenues and their work remain constant along with their steady overall performance.
Your medium product (total) item divided by total work would stay intact. United states staff layover to the other side. It laid-off the staff equals higher marginal labor for overall returns it's going to be higher production besides that, lower labor in the United States could mean an increase in the gross labor output but a larger for Japan, more then, that's why the choice a is correct.
Answer:
The correct answer is letter "A": an economic downturn that persists for more than two consecutive quarters of the year.
Explanation:
Recessions are economic downturns in an economy characterized by the fall growth for more than two consecutive quarters. The most important indicator that determines the economic downturn is the real Gross Domestic Product (GDP). The National Bureau of Economic Research (NBER) is the entity in charge of calling the recession.
Answer:
97.2
Explanation:
The reason is that they want you to add 2012 from 2011 to get your answer of 9.65 then you would round up to 97 then add the .2.
