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muminat
3 years ago
6

How does the budget process make fiscal policy difficult to implement? (lo32-3)?

Business
1 answer:
Keith_Richards [23]3 years ago
7 0
The budget process makes fiscal policy difficult to implement because 
<span>---The budget process begins a year and a half before the budget is implemented, and this will make it difficult to know what type of fiscal policy will be needed because it requires us to predict the problem and opportunities that arise during the operation.
---Many budget decisions are made for political reasons , because many politicians was appointed by interest groups that controlled by big companies.
---Nearly two-thirds of the budget is mandated by federal programs and cannot be easily changed, even if it could be changed, the cost could outweihgt the benefit.</span>
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if the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the st
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Expected return of the stock is greater than 12%.

Using formula, Risk free rate + beta (market risk rate - risk free rate)\

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= 13.6 - 0.4* risk premium

Risk premium of a stock is greater than 12%.

A stock's total return takes into account both capital gains and losses as well as dividend income, as opposed to a stock's nominal return, which only displays its price movement. In addition to considering the actual rate of return, investors should consider their ability to withstand the risk involved with a given investment. An investment's return on investment (ROI) provides a general indication of its profitability. The return on investment (ROI) is calculated by subtracting the investment's initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.

Note that the full question is:

If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the stock?

A. less than 12%.

B. 12%.

C. greater than 12%.

D. cannot be determined.

To learn more about returns: brainly.com/question/24301559

#SPJ4

3 0
1 year ago
What is the prime minister of united state of america​
MrMuchimi

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OKi

7 0
3 years ago
Adam and barb go to the store to purchase some lottery tickets. without looking at the price, adam says "i’ll take 10 lottery ti
Shtirlitz [24]

Answer:

Price elasticity of demand for Adam=0

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