<u>This is an example of "outsourcing".</u>
Outsourcing is the business routine with regards to procuring a gathering outside an organization to perform benefits and make products that generally were performed in-house by the organization's own representatives and staff. Generally done as a cost-cutting measure, it can influence occupations going from client support to assembling to the back office.
Outsourcing can enable organizations to lessen work costs essentially by outsourcing certain assignments. Organizations can likewise dodge costs related with overhead, gear and innovation.
Answer:
The maturity risk premium is 1.0%.
Explanation:
The maturity risk premium or the 2-year security can be calculated as follows:
Maturity Risk Premium = Yield of the treasury note - Nominal risk free Interest rate
Nominal risk free Interest rate = Real risk-free rate of interest + Expected inflation = 3% + 2% = 5%
Therefore;
Maturity Risk Premium = 6.0% - 5.0% = 1.0%
Therefore, the maturity risk premium or the 2-year security is 1.0%.
Answer:
B
Explanation:
Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
Market index fund is riskless and would have a beta of 1
by investing half in a riskless and half in a risky asset. beta would be equal to 1
Hope this helps
Business-to-business is a situation where one business makes a commercial transaction with another. This typically occurs when: A business is sourcing materials for their production process for output .Example- Providing raw material to the other company that will produce output.
