Answer:
The risk premium appropriate for this security is 4%.
Explanation:
The returns vary by only half as much as the market index which means that the security half as risky as the market.
The risk-premium for the security should be half of the market risk premium.
Market risk premium is calculated by = Expected return on the market - Risk free rate
Market risk premium = 13% - 5% = 8%
The risk premium on the security would be 8% / 2 = 4%
Answer:
c. Higher-skilled workers are readily available at the higher wage.
Explanation:
the government decree would make the cost of hiring low skilled labour higher. As, a result there would be a reduction in the quantity demanded of low skilled labour.
if High skilled workers are readily available at the higher wage this would lead to a greater decrease in employment of low-skilled workers. Employers would ask themselves why pay the same high wages high skilled labour earns to low skilled labour when high skilled labour can be hired at the same price since most likely higher skilled workers would carry out the tasks better than lower skilled labour ?
Techno is planning a security offering under Regulation D, Rule 505. Under this rule, Techno can offer an unlimited amount of securities. Securities are able to spit up different payments for profits. Through these securities regarding the regulation rule, Techno can offer a wide range of securities.
She is not being proactive and waking up early enough to get on the bus