Answer:
subtracting the risk-free rate of return from the market rate of return
Explanation:
Market risk premium is the premium over the risk free rate that investors demand for holding a risky asset
Market risk premium = market rate of return - risk free rate
the higher the risk premium, the higher the return investors are demanding and the riskier the investment
for example if risk free rate is 5% , market rate of return in industry A is 10% while in industry B it is 20%
Market premium in A = 10% - 5% = 5%
Market premium in b = 20% - 5% = 15%
I think the answer is B because that doesn't seem very desirable
Answer:
A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.Market economies range from minimally regulated free-market and laissez-faire systems where state activity is restricted to providing public goods and services and safeguarding private ownership, to interventionist forms where the government plays an active role in correcting market failures and promoting social welfare. State-directed or dirigist economies are those where the state plays a directive role in guiding the overall development of the market through industrial policies or indicative planning—which guides yet does not substitute the market for economic planning—a form sometimes referred to as a mixed economy.
Demand.
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Answer:
The correct option is A,A. 7,000 = NA + 2,000 - (5,000) NA - NA = NA 7.000 FA
Explanation:
By issuing the treasury stock ,asset,cash to be precise increases by $7000($35*200) which implies a debit to the asset ,hence the $7000 seen on the left hand-side of the equation.
This transaction has no liability impact,as a result liabilities is denoted NA,not applicable.
The par value of the treasury is to be credited to treasury stock with $5,000($25*200).
Lastly the difference between the par value and the issue is credited to paid-in capital from treasury stock i.e($35-$25)*200))=$2000,this is depicted by $2000 in the equation
