The premium would be 5%
If a portfolio had a return of 11 the risk-free asset return was 6, and the standard deviation of the portfolios excess returns was 25 the premium would be 5%
Portfolio return = 11%
Risk free rate = 6%
Risk premium = Portfolio return - Risk free rate
= 11% - 6% =5%
So, the premium would be 5%
Premium is an amount paid periodically to the insurer by means of the insured for overlaying his chance.
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the rate expected on the treasury bill is 8.57%. enter answer as a percent rounded to 2 decimal places.
The real rate is 2.1 percent
The inflation rate is 3.4 percent
To find the rate which is to be expected on a treasury bill we have to apply fisher's equation
1+R= (1+r)(1+h)
Therefore, the rate on the treasury bill can be calculated as follows
1+R= (1+r)(1+h)
r= 3.4%
= 3.4/100
= 0.034
h= 5%
= 5/100
= 0.05
R= (1+r)(1+h)-1
= (1+0.034)(1+0.05)-1
= (1.034×1.05)-1
= 1.0857-1
= 0.0857×100
= 8.57%
A Treasury invoice (T-invoice) is a brief-term debt obligation backed via the U.S. Treasury Department with an adulthood of one year or less. Treasury bills are generally bought in denominations of $1,000 even as a few can attain a denomination of $five million.
let's say an investor purchases a par price of $1,000 T-bill with an aggressive bid of $950. whilst the T-invoice matures, the investor is paid $1,000, thereby income $50 in interest on the funding.
U.S. Treasury bills are auctioned on a regular schedule. individuals should purchase T-payments from the government using the TreasuryDirect internet site. it is free to register, and it'll function like a brokerage account that holds your bonds. in addition to bidding on new troubles, You also can install reinvestments into securities of an equal type and time period. as instance, you can use the proceeds from a maturing fifty-two-week invoice to shopping for some other fifty-two-week invoice. sure brokerage corporations can also permit buying and selling in U.S. Treasuries.
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I had to look for the options and here is my answer:
Based on the given scenario above regarding the changes that a young CEO made in his company, which resulted in the poor interpretation among his employees, the progressive companies at present would now incorporate strategies that continuously adapt a FORMAL AND INFORMATION ORGANIZATION THAT AIDS IN CHANGES.
Answer:
the predetermined overhead rate is $12.10
Explanation:
The computation of the predetermined overhead rate is shown below:
The Predetermined overhead rate is
= (Estimated total fixed manufacturing overhead ÷ Estimated direct labor hours)
= ($121,000 ÷ 10,000)
= $12.10
hence, the predetermined overhead rate is $12.10
Answer:
The average cost of operating the helpline per call at a volume of 25,300 calls in a month will be $18.10
Explanation:
The costs of operating the helpline are variable with respect to the number of calls in a month. At a volume of 25,000 calls in a month, the costs of operating the helpline total $452,500.
The average cost of operating the helpline per call = $452,500/25,000 = $18.10
At a volume of 25,300 calls in a month, The average cost of operating the helpline per call does not change but the total costs of operating the helpline increase because the costs of operating the helpline are variable.
Total costs of operating the helpline = $18.10 x 25,300 = $457,930
