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insens350 [35]
3 years ago
7

The market risk premium is computed by: adding the risk-free rate of return to the inflation rate. adding the risk-free rate of

return to the market rate of return. subtracting the risk-free rate of return from the inflation rate. subtracting the risk-free rate of return from the market rate of return. multiplying the risk-free rate of return by the market beta.
Business
1 answer:
OverLord2011 [107]3 years ago
3 0

Answer:

subtracting the risk-free rate of return from the market rate of return

Explanation:

Market risk premium is the premium over the risk free rate that investors demand for holding a risky asset

Market risk premium = market rate of return - risk free rate

the higher the risk premium, the higher the return investors are demanding and the riskier the investment

for example if risk free rate is 5% , market rate of return in industry A is 10% while in industry B it is 20%

Market premium in A = 10% - 5% = 5%

Market premium in b = 20% - 5% = 15%

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Cordell Inc. experienced the following events in 2018, its first year of operation:
Zepler [3.9K]

Answer:

See explanation

Explanation:

See the images to get the result.

7 0
3 years ago
What is the objective of the last step in the ethical decision-making framework? Multiple Choice to brainstorm any alternative c
I am Lyosha [343]

Answer:

B. To weigh the various alternatives and choose a course of action

Explanation:

The major steps involved in a proper decision-making process include; Identifying the problem, understanding the problem by obtaining the necessary information, developing alternatives, choosing the best alternative that would address the ethical issue at hand, and implementing the best alternative.

The aim of the entire process of decision-making would be faulted if at the end, a course of action is not taken. The decision made at the end of the day, should address the initial concern raised. This decision would also need to be reviewed to ensure that it is the right step.

Determining ways to maximize profit for the company may not be the issue at hand, as several factors could inform the decision making process.

5 0
3 years ago
At the beginning of the month, the baking department of Mario Company had no beginning work in process inventory. At the end of
Gnoma [55]

Answer:

<u>1800 units </u>

Explanation:

Equivalent units refer to the number of units which would've been completed if all the efforts were directed at those units which were started during a month, which are of course less than the total units of work in process.

In the given case, equivalent units shall be computed as follows,

Equivalent number of units using weighted average method = Finished goods + Equivalent units in ending work in process

Equivalent number of units = 1200 + 800 × 0.75

Equivalent number of units = 1200 + 600 = 1800 units

4 0
4 years ago
Which statements best describe how governments respond to changes in the business cycle? Check all that apply.
Harman [31]

The correct answer is 2 and 5.

(i) Government refuses to pass budget.

(ii) Government manipulates interest rates.

Another name for business cycle is economic  cycle. The upward and downward movement which is of gross domestic product.

We measure business cycle by way of considering growth rate of real gross which is of domestic product.

7 0
3 years ago
Read 2 more answers
Your portfolio is weighted 63% in a RISKY asset and 37% in the RISK FREE asset. The expected return on RISKY assets is 10% and t
Masteriza [31]

The expected return of your portfolio is 7.41%.

<h3>Portfolio expected return</h3>

Using this formula

Portfolio expected return=(Risky Asset weight × Risky expected return) + (Risk free Asset weight × Risk free expected return)

Let plug in the formula

Portfolio expected return=(63%×10%)+(37%×3%)

Portfolio expected return=6.3%+1.11%

Portfolio expected return=7.41%

Inconclusion the expected return of your portfolio is 7.41%.

Learn more about expected return of portfolio here:brainly.com/question/25672216

7 0
3 years ago
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