One technique in answering behavior interview questions is STAR where S makes for specific situation, T for task, A for action and R for result. SImple but efficient procedure
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Answer:
A. $63.9
Explanation:
Your monthly payment is $1,278 => One-month payment is a fixed amount of $1,278
Your mortgage holder places a 5% penalty on all late payments so that the penalty cost for 1 month late would be 5% of one-month payment.
=> Penalty cost can be calculated as the following equation:
<em>Penalty cost = One-month payment x 5% </em>
<em>= 1,278 x 5 / 100 = $63.9</em>
So total penalty cost would be $63.9
Answer:
The statement is false
Explanation:
The economy in 1933 had negative investment, but that doesn't mean that it didn't produce any capital goods during the year.
A negative net investment means that the money invested in new capital goods was less than the depreciation of existing capital goods. Theoretically it can also result form no new capital gains, but in real life that doesn't happen.
Answer:
12%
Explanation:
The computation of the expected return on the market is shown below:
As we know that
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
11.1% = 5.55% + 0.86 × (Market rate of return - 5.55%)
So, the market rate of return is
= (11.1% - 5.55%) ÷ 0.86 + 5.55%
= 12%
Also , The Market rate of return - Risk-free rate of return) is also known as the market risk premium