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vaieri [72.5K]
3 years ago
11

If the average annual rate of return for common stocks is 11.7 percent, and 4.0 percent for U.S. Treasury bills, what is the ave

rage market risk premium?
Business
1 answer:
Vanyuwa [196]3 years ago
3 0

Answer:

7.7%

Explanation:

Risk premium is the return an investor would want for holding a risky bond. It is the excess return earned over holding a risk free bond

Risk premium = return on risky asset - return on U.S. Treasury bills

The U.S. Treasury bills is considered to be risk free because the US government cannot default

On the other hands, stocks are risky because companies can default on payment of dividends due to various reasons e.g. insolvency

11.7 - 4 = 7.7%

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Answer:

Punishment.

Explanation:

In this scenario, Blake racked up three safety violations in one month and was taken off the construction crew and put in the office, meaning he was no longer eligible for overtime. He pled with his boss, saying he needed the money for rent. Citing that Blake's financial situation was not a concern of the company, he was put in the office until he could demonstrate that safety was a priority. This illustrates punishment.

Punishment can be defined as an act of imposing a penalty or consequences on an individual or group of people for flouting rules, guidelines or instructions and any other wrongdoing.

<em>Generally, punishments are used as a moral tool to discourage wrongdoing or unacceptable behaviors being exhibited by people and to serve as a deterrent to others. </em>

4 0
3 years ago
In what IT pathway would you most likely need to be familiar with the system development life cycle?
stealth61 [152]
Hello
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8 0
4 years ago
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You purchase Rayovac batteries from Wal-Mart. You send in your battery receipt and a form with your name, address, and UPC code
Len [333]

Answer:

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3 0
3 years ago
Preissle Company, wants to sell some 20-year, annual interest, $1,000 par value bonds. Its stock sells for $42 per share, and ea
NikAS [45]

Answer:

coupon interest rate that the company must set on the bonds in order to sell the bonds-with-warrants at par is 8.25%.

Explanation:

warrant per share = 2*75 = $150

price of the bond = 1000 - 150 - (1000/(1.05^40))

                             = $707.9543177

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6 0
3 years ago
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labwork [276]

Answer:

Explanation:

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8 0
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