1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ganezh [65]
3 years ago
13

Last year, T-bills returned 1.8 percent while your investment in large-company stocks earned an average of 5.8 percent. Which on

e of the following terms refers to the difference between these two rates of return?
A. Standard deviation
B. Treasury bills
C. Geometric return
D. Risk premium
E. Inflation rate
Business
1 answer:
Pepsi [2]3 years ago
3 0

Answer:

Option D. Risk premium, is the right answer.

Explanation:

Given the interest or return earned on the T-bill = 1.8 per cent.

The return earned on the investment made in a large company = 5.8 per cent.

Since we know that the difference between the return by the stock market and risk-free return is the risk premium. Below is the formula.

Risk premium = Return from large company (return by the stock market) – return on T bills (risk-free return)

Therefore, the Option D risk premium is correct.

You might be interested in
Which of the following is true? ADebit Cards often have a higher interest rate than Credit Cards. BDebit cards offer the highest
Nezavi [6.7K]
Its d i think but i 100 shore i 'm right
4 0
3 years ago
Short Term Inc. has issued zero-coupon bonds that mature in one year. The returns from holding these bonds have a beta of 0.25.
Nataly [62]

Answer:

1. Current bonds price = $81.86.

2. Yield to maturity  = 22.16%.

3. 3.  Expected Return = 7.5%.

Explanation:

Required Rate = Rf + beta*MRP

          = 5% + 0.25*(15% - 5%)

       = 5% +0.25*10%

              = 5% + 2.5% = 7.5%

 Required Rate = 7.5%

  Expected Future Value = 70% x $100 + 30% x $60

       = (0.7*$100) + (0.3*$60)

       = $(70+18) = $88

    Expected Future Value = $88

1.  Current bonds price = 88/1.075 = $81.86

2.  Yield to maturity = 100/81.86 - 1 = 1.22159785-1 = 0.22159785 =   22.159785% = 22.16%

3.  Expected Return = 7.5%

6 0
3 years ago
An analyst with a national ratings agency is concerned about a firms ability to meet its short term obligations. To evaluate the
Semmy [17]

Answer:

a. Balance Sheet

Explanation:

The balance sheet reports the total assets, total liabilities and stockholder equity.  

The total asset is comprised of the current asset, fixed assets, and the intangible asset

The total liabilities comprise of current liabilities and long term liabilities

The aim to make the balance sheet is to analyze the liquidity, financial performance, position of the company

Whereas the cash flow statement shows the inflow and outflow of cash and the income statement records total revenues and total expenditures.  

8 0
3 years ago
When a restaurant prices pizza at $10 per slice they sell 100 slices in a night. If they sell pizza for $5 per slice, they sell
Helga [31]

slope of this demand curve for pizza = <u>-1/40</u>

<h3>Briefly explained</h3>

Slope = changes in y/ changes in x

The shop sells 200 more pizzas if the price drops by $5 ($10 to $5). (100 to 300 pizzas) A good's quantity is always on the x-axis and its price is always on the y-axis. According to our justification, the cost is REDUCED by $5 (a reduction of -$5) and the quantity of pizzas sold rises by 200. The slope is therefore <u>-5/200 or -1/40.</u>

<h3>What is demand curve?</h3>

The demand curve is a graphical depiction of the connection between the cost of a commodity or service and the quantity required over a specific time period.

The price will often be shown on the left vertical axis in a representation, and the amount needed will typically be shown on the horizontal axis.

Learn more about demand curve

brainly.com/question/1139186

#SPJ4

5 0
2 years ago
What is the primary reason to issue stock?
Lapatulllka [165]
To raise money to grow the company
8 0
3 years ago
Read 2 more answers
Other questions:
  • The study of economics on a smaller scale is called
    11·1 answer
  • Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $2
    15·1 answer
  • Which one of the following statements is correct if a firm has a receivables turnover of 36.5? Group of answer choices It takes
    5·1 answer
  • Which conclusions can be made about the growth of the economy? Check all that apply. Aggregate demand increased after 2009. Aggr
    5·2 answers
  • A _____________________ is created during the first half of the sprint planning meeting and a _________________ is created durin
    10·1 answer
  • _________ organization is a hybrid form in which a horizontal project management structure is "overlaid" in the normal functiona
    6·2 answers
  • A drive through liquor store estimates that customers arrive in their cars at the rate of 10 per hour. The cashier can serve cus
    11·1 answer
  • 6. Consider an economy described by the following equations:
    9·1 answer
  • Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rat
    10·1 answer
  • If a public offering of new stock is initially priced too high relative to market demand, the result would be a:_________
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!