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Anvisha [2.4K]
2 years ago
11

A stock has an average expected return of 10.1 percent for the next year. The beta of the stock is 1.45. The T-Bill rate is 5.5%

and the T-Bond rate is 3.5 %. What is the market risk premium?
a. 3.17%.
b. 4.60%.
c. 14.60%.
d. 2.48%.
e. 4.93%.
Business
1 answer:
Aleksandr [31]2 years ago
3 0

Answer:

The right solution is "4.55%".

Explanation:

Given that,

Expected return,

= 10.1%

Risk-free rate,

= 3.5%

Beta,

= 1.45

Now,

The market risk premium will be:

⇒ Expected \ return=Risk-free \ rate+Beta\times (Market \ risk \ premium)

⇒ Market \ risk \ premium=\frac{Expected \ return-Risk -free \ rate}{Beta}

By putting the values, we get

⇒                                      =\frac{10.1-3.5}{1.45}

⇒                                      =\frac{6.6}{1.45}

⇒                                      =4.55 (%)

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Answer:

See below

Explanation:

With regards to the above, the formula for total productivity measure is

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Output sales = $200,000

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Total productivity measurement for this year

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Total input = Input labor + raw materials + energy + capital + others

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Therefore, total productivity measure

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Partial productivity for last year

Output sales = $200,000

Input = Input labor + raw materials + capital

= $30,000 + $35,000 + $50,000

= $115,000

Partial productivity measure = $200,000/$115,000

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Partial productivity measure for this year

Output sales = $220,000

Input = Input labor + raw materials + capital

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= $135,000

Therefore, partial productivity measurement for last year

= $220,000/$135,000

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The above measures indicates that there is a reduction in total productivity measures from last year to this year. Same applies to partial productivity measures for both years.

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Answer:

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Some types of power expressed by leaders are referent power, coercive, etc.

In this scenario, Nour is usually takes charge of the situation and gets people moving toward the group's objective. Thus, Nour probably has a high need for power because he's more often than not in charge and control while getting his team members to achieve the set objective.

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