Answer:
0.6%
Explanation:
From the question above the values given are
Treasury security rate= 5.35%
Real risk free rate= 2.0%
Average inflation rate= 2.75%
Market risk premium= ?
The market risk premium can be calculated as follows
Treasury security rate= Real risk rate+Average inflation rate+Market risk premium
5.35%= 2.0%+2.75%+market risk premium
5.35%= 4.75%+market risk premium
5.35%-4.75%= market risk premium
0.6%= market risk premium
Market risk premium is 0.6%
Hence the market risk premium for the 2-year security is 0.6%
Answer:
H0 : β = 0
H1 : β = 0
R = 0.8642
P value = 0.002654
Explanation:
Null hypothesis : H0 : β = 0
Alternative hypothesis : H1 : β ≠ 0
The correlation Coefficient, R value as obtained using a correlation Coefficient calculator is 0.8642. This depicts that a strong positive relationship exists between court income and Justice salary.
The Pvalue using the Pvalue calculator (R = 0.8642, N = 9) = 0.002654
The Pvalue < α
0.002654< 0.05 ; Hence, we reject H0.
Answer:
Increase by $97,650
Explanation:
Increment Sale $247,500
(450 * $550)
<u>Less Increment cost</u>
Direct materials $90,000
(450 * $200)
Direct labor $36,000
(450 * $80)
Manufacturing overhead $20,250
(450 * $150 * 30%)
Administrative expenses <u>$3,600</u> <u>$149,850</u>
(450 * $80 * 10%)
Profit will increase by <u>$97,650</u>
Answer:
The opportunity cost is the income earned from her balance on savings account at the interest rate of 3% per year that Reece would received if she had not opened her owned brewery business. This opportunity cost is $600 per year.
Explanation:
Please find the below for further explanation and calculations:
The opportunity cost per one year = Income earned on saving account per one year = 20,000 x 3% = $600;
The reason why it is an opportunity cost is because as a result of opening brewery business, Reece sacrifices the income earned on this saving, instead, she contributes the saving fund to her brewery business.