The market risk premium is 14.12. A market risk premium in finance and economic is used to measure how much the level of risk.
A risk premium means a measure of excess return that is used by an individual to compensate being subjected to an improved degree of risk. A risk premium is the common definition being the expected risky return less the risk-free return.
To find the amount of risk premium, we can calculate it use beta of the stock formula:
Beta of the stock = (expected return - risk-free rate) ÷ risk premium
Because we need the amount of risk premium, then it will be:
Risk premium = Beta of the stock/(expected return - risk-free rate)
Risk premium = 1.75/(15.7% - 3.3 percent)
Risk premium = 1.75/(0.157 - 0.033)
Risk premium = 1.75/0.124
Risk premium = 14.12
Thus, the market risk premium is 14.12.
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Answer:
The correct answer is letter "B": A decrease in a deferred tax asset.
Explanation:
A Deferred Tax Asset is an asset on a balance sheet of a business that can be used to lower taxable income. It is the opposite of deferred tax liability that reflects something that will increase income taxes. Both are listed under current assets on the Balance Sheet.
The deferred tax asset will be generated when recorded income taxes owed are higher than the income taxes paid to the Government.
Thus, <em>a decrease in deferred tax is recorded when a company has collected revenue in advance for a good not delivered or a service not rendered yet.</em>
The correct answer is d). We have that government spending can also give way to products and services, just like private enterprises, thus there is no double-counting there. Services such as haircuts have their own value, which are separate from any other material products. Finally exports are also not counted twice; Raw materials though would be counted twice if we counted them for the GDP since their value is incorporated in the value of the final product. For example, we cannot count towards the GDP the value of rubber production in a country since then, if we counted the value of the tires too, we would count the value of the rubber in the tires twice (one time as rubber/ one time as part of the tire).
i would believe that the government plays an important role in a market economy As we saw in our discussion of competitive markets, a free enterprise system is largely self-regulating. Therefore, government plays a limited, but important, role, allowing individuals to make most of the economic decisions.
The best transportation option for Jim is C. Utilizing his saving as a down payment and buying the car using an auto loan.
<h3>Further explanation
</h3>
Auto loan is a loan secured for the expressed purpose of purchasing a car. We can save money by paying off your car loan early. Because we are most likely more than halfway through our loan, most of our payment is currently going toward the principal.
There are four basic building blocks of a car loan:
1. Loan Cost
: the principal and the interest. The principal is the negotiated cost of the vehicle itself. The interest refers to the total amount of the costs accrued over the life of the loan based on the principal amount and the stated interest rate.
2. Interest Rate
: a basic rate charged to the borrower for the money loaned.
3. Down Payment
: an upfront amount of cash paid by the borrower at the time of the purchase of the vehicle.
4. Terms and Conditions
: all of the other items that make up a car loan, including the term of the loan, normally stated in a number of months or years; insurance and registration requirements; loan payoff and resale terms; etc
<h3>Learn more</h3>
- Learn more about auto loan of car brainly.com/question/12389122
- Learn more about Leasing car brainly.com/question/3068511
- Learn more about Renting car brainly.com/question/11856182
<h3>Answer details</h3>
Grade: 9
Subject: business
Chapter: car
Keywords: the market for a car, money, the best transportation option, saving, auto loan.