Answer:
D
Explanation:
Risk premium is the compensation given to investors for holding risky assets. The more risky an asset is, the higher the premium.
A rational investor would be unwilling to invest in a stock that offers zero premium because there is no compensation for the risk that is borne by the investor.
Risk premium is always positive.
Risk premium = expected rate of return of the asset - expected rate of return of the risk free asset.
The more risky the asset, the higher the expected rate of return. So, the expected rate of return of the asset would always be higher than the risk free rate. This makes risk premium positive
Answer:
$54,000
Explanation:
For computation of Depreciation Expense for the year ending 31 Dec first we need to compute the depreciation under straight line method for the year which is shown below:-
Depreciation under straight line method for the year = (Cost - Residual value) ÷ Estimated useful life
= ($600,000 - $60,000) ÷ 10
= $540,000 ÷ 10
= $54,000
Depreciation expenses = (Depreciation under straight line method for the year ÷ 12) × From Jan 1 to Dec 31
= ($54,000 ÷ 12) × 12
= $4,500 × 12
= $54,000
Answer:
Current break even units = $17,125
New break even point in units = $21,200
Explanation:
The computation of current break-even point in units and comparison with break-even point in units is shown below:-
Current break even units = Fixed cost ÷ Contribution margin per unit
= $411,000 ÷ ($60 - $36)
= $411,000 ÷ $24
= $17,125
New break even point in units = Fixed cost ÷ Contribution margin per unit
= ($411,000 + $34,200) ÷ ($57 - $36)
= $445,200 ÷ $21
= $21,200
Answer:
The resources are allocated by the combined actions of the firms and the households and the central planning authority like the government.
Explanation:
Market economy is the economy where the demand and the supply laws direct the production of the services and goods. The supply involve the labor, natural resources and capital. Demand comprise of purchases by the consumers and the government.
In the market economy, the resources are allocated by the decisions of the firms and the households who are interacting in markets. It is an economy where the most economic decisions are the consequence from the interaction of the sellers and the buyers in the market but the government also plays a very vital role while allocation of resources are done.
Hi Brainiac! Thanks for asking a question here in the Business category. <span>
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The answer to this statement would be false. Fees do end up being changed and differed when the money is deposited by the debit card.
Answer: False ✅
Hope that helps! ★ If you have
further questions about this question or need more help, feel free to comment
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