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timofeeve [1]
3 years ago
8

A stock has an average expected return of 9.7 percent for the next year. The beta of the stock is 1.34. The T-Bill rate is 5.2%

and the T-Bond rate is 3%. What is the market risk premium
Business
1 answer:
givi [52]3 years ago
4 0

Answer:

3.4%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

9.7 = 5.2 + 1.34(x - 5.2)

9.7 - 5.2 =  1.34(x - 5.2)

3.35 = x - 5.2

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Without the government or foreign sector in the income expenditure model consumption equals what?
lubasha [3.4K]

Answer:

D

Explanation:

3 0
3 years ago
Suppose a gold miner finds a gold nugget and sells the nugget to a mining company for $500. The mining company melts down the go
SSSSS [86.1K]

Answer:

The GDP will increase by $2,000 as a result of these transactions

Explanation:

When trying to calculate the increase in GDP caused by a series of transactions, we do not add all the transactions, instead we look at the price of the final good and that is the increase in GDP. In this case the final good is the necklace that the store department sells for $2,000 therefore we will only consider the final transaction. So the GDP will increase by $2,000 as a result of this series of transactions because the final good sold for $2,000.

4 0
3 years ago
Suppose your bank account pays interest monthly with an effective annual rate of 6%. What amount of interest will you earn each m
Bess [88]

Answer:

0.4868%

$615.47

Explanation:

Given that

a. EAR = 6%

Thus,

Equivalent monthly rate = (1 + r)^n - 1

Where r = EAR

Therefore

= (1 + 0.06)^1/12 - 1

= 1.0048675 - 1

= 0.0048675 × 100

= 0.4868%

b. Given that

Monthly rate = 0.4868%

Future value = 100,000

Time = 10 years

Recall that

FV annuity formula = C × (1/r) × ([1 + r ]^n - 1)

Where

C = payment

Therefore

100000 = C (1/0.004868) × ([1 + 0.004868]^120 - 1)

C = 100,000/(1/0.004868) × ([1 + 0.004868]^120 - 1)

C = $615.47 per month

4 0
3 years ago
Read 2 more answers
You are the head of HR at an organic foods manufacturer. Your goal is to enable HR to transform the functioning of the company t
laila [671]

Answer:

Allocate sufficient resources and support for the HRX initiative ( B )

Explanation:

Allocating sufficient resources and support for the HRX initiative is a very good step in the right direction as the HR Manger in trying to implement the HRX initiative and also for the long term success of this Initiative as well.

since The main goal of the Head of the Human resources department is to transform the company's production level to a higher level of productivity in a quicker timer frame, dedicating more resources and support to the initiative will help to speed up activities and the company will start producing  at a very fast rate. having to increase salary will not help because the workers can only do what they can do they can't go beyond their limit hence there will be health emergencies.

4 0
3 years ago
Linda, the human relations manager, is having lunch with Kellyanne, who will be leaving to manage the company office in Hiroshim
olchik [2.2K]

Answer:

False

Explanation:

1) In Japan, this is rude to openly tip waiters, waitress, etc. So to avoid squabbles over tipping some restaurants ask politely if they may charge a fee of 15% on coupons. But it is not expected, nor it is mandatory to have this rule. It is humiliating, disgusting for somebody to ask or wait for tips.

Tips are not seen as an incentive to better work in Japan.

2) Tips in Europe is way too modest, than in the US. In some countries it is not even expected, but the tips range within 5% to 10% when it is necessary.

3) Kellyanne is wrong in both pieces of information

7 0
3 years ago
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