Homework Answers
Answer = c. Both a and b.
Reason- Risk premium is a form of compensation to the investor for incesting in risky asset in comparison with risk free asset. So the risk premium is essentially the difference in the earning between high risk and no risk investment.
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QUESTION 9 A risk premium is a the difference between the earings of a low risk...
A risk premium is a the difference between the earnings of a low risk asset and...
A risk premium is a the difference between the earnings of a low risk asset and a high risk asset Ob premium paid to a security holder to compensate him for bearing a higher risk c. both A&B od none of the above QUESTION 3 Profits of a monopoly are driven to zero a In the long run because the demand curve becomes more inelastic b. Immediately in the short-run as assets freely move from low-valued uses to high-valued uses...
pls answer all QUESTION 27 A risk premium is a the difference between the earnings of...
pls answer all
QUESTION 27 A risk premium is a the difference between the earnings of a low risk asset and a high risk asset b. premium paid to a security holder to compensate him for bearing a higher risk c. both A&B d. none of the above QUESTION 28 How does an increase in the price of laptop memory chips affect the market of laptops? a. The supply curve for laptops shifts to the left b. The demand curve...
QUESTION 34 A compensating wage differential is the difference between the wage of an individual working...
QUESTION 34 A compensating wage differential is the difference between the wage of an individual working in favorable conditions and the wage of an individual working in unfavorable conditions b. compensation paid to an individual for working in a less desirable environment O premium paid to a security holder to compensate him for bearing a higher risk d. Only A&B
QUESTION 5 A compensating wage differential is a the difference between the wage of an individual...
QUESTION 5 A compensating wage differential is a the difference between the wage of an individual working in favorable conditions and the wage of an individual working in unfavorable condition b.compensation paid to an individual for working in a less desirable environment c. premium paid to a security holder to compensate him for bearing a higher risk d. Only A&B QUESTION 6 Decreasing average cost implies that a marginal cost is above average cost b, marginal cost is below average...
Assumptions that underlie the Resource-based View include a. Resource heterogeneity b. Resource immobility c. Barri...
Assumptions that underlie the Resource-based View include a. Resource heterogeneity b. Resource immobility c. Barriers to entry d. Both a and b QUESTION 33 Decreasing average cost implies that a marginal cost is above average cost b. marginal cost is below average cost e marginal cost is equal to average cost d. none of the above QUESTION 34 A compensating wage differential is the difference between the wage of an individual working in favorable conditions and the wage of an...
QUESTION 33 Profits of a monopoly are driven to zero a. Immediately in the short-run as assets freely move from lo...
QUESTION 33 Profits of a monopoly are driven to zero a. Immediately in the short-run as assets freely move from low-valued uses to high-valued uses instantly b. In the long run because the assets eventually move from low to high valued use c. In the short run because the demand curve becomes more elastic d. In the long run because the demand curve becomes more inelastic QUESTION 34 Attractive industries have all the following attributes, except a. High supplier power...
21. a recent medial study shows hat peanuts are one of the leading causes of high...
21. a recent medial study shows hat peanuts are one of the leading causes of high cholesterol. this would cause the demand for peanuts to a) not change b) go down the demand curve c) shift to the right d) shift to the left 22) a compensating wage differential is a) the difference between the wage of an individual working in favorable conditions and the wage of an individual working in unfavorable conditions b) compensation paid to an individual for...
bonds with relatively low risk of default are called 1) Bonds with relatively low risk of...
bonds with relatively low risk of default are called
1) Bonds with relatively low risk of default are called securities and have a rating of Baa (or BBB) a above; bonds with ratings below Baa (or BBB) have a higher default risk and are called A) investment grade; lower grade C) high quality; lower grade B) investment grade; junk bonds D) high quality; junk bonds 2) Which of the following bonds are considered to be default-risk free? A) municipal bonds...
Question 13 (0.2 points) Which one of the following is the computation of the risk premium...
Question 13 (0.2 points) Which one of the following is the computation of the risk premium for an individual security? E(R) is the expected return on the security, Rfis the risk-free rate, B is the security's beta, and E(RM) is the expected rate of return on the market. O 1) E(RM) - RF O2) B[E(RM) - RA O 3) E(R) - E(RM) 04) E(R) - [E(RM) + RA View hint for Question 13 Question 14 (0.2 points) Which one of...
2 Low 18. Based on Table 3, what is the liquidity risk premium? Table 3 Investment...
2 Low 18. Based on Table 3, what is the liquidity risk premium? Table 3 Investment Maturity Liquidity Default Risk High Low 2 I 2 Low I 3 7 I Low Low 4 8 High High Low 5 8 Low High A. 3.40% B. 0.81% C. 1.50% 10000 UN Interest Rate 3.00% 3.81% 4.81% 5.25% 6.75% I 19. Based on Table 3, what is the default risk premium? A. 0.69% B. 1.25% C. 0.44% D. 1.50%
A risk premium is a the difference between the earnings of a low risk asset and a high risk asset Ob premium paid to a security holder to compensate him for bearing a higher risk c. both A&B od none of the above QUESTION 3 Profits of a monopoly are driven to zero a In the long run because the demand curve becomes more inelastic b. Immediately in the short-run as assets freely move from low-valued uses to high-valued uses...
pls answer all
QUESTION 27 A risk premium is a the difference between the earnings of a low risk asset and a high risk asset b. premium paid to a security holder to compensate him for bearing a higher risk c. both A&B d. none of the above QUESTION 28 How does an increase in the price of laptop memory chips affect the market of laptops? a. The supply curve for laptops shifts to the left b. The demand curve...
QUESTION 34 A compensating wage differential is the difference between the wage of an individual working in favorable conditions and the wage of an individual working in unfavorable conditions b. compensation paid to an individual for working in a less desirable environment O premium paid to a security holder to compensate him for bearing a higher risk d. Only A&B
QUESTION 5 A compensating wage differential is a the difference between the wage of an individual working in favorable conditions and the wage of an individual working in unfavorable condition b.compensation paid to an individual for working in a less desirable environment c. premium paid to a security holder to compensate him for bearing a higher risk d. Only A&B QUESTION 6 Decreasing average cost implies that a marginal cost is above average cost b, marginal cost is below average...
Assumptions that underlie the Resource-based View include a. Resource heterogeneity b. Resource immobility c. Barriers to entry d. Both a and b QUESTION 33 Decreasing average cost implies that a marginal cost is above average cost b. marginal cost is below average cost e marginal cost is equal to average cost d. none of the above QUESTION 34 A compensating wage differential is the difference between the wage of an individual working in favorable conditions and the wage of an...
QUESTION 33 Profits of a monopoly are driven to zero a. Immediately in the short-run as assets freely move from low-valued uses to high-valued uses instantly b. In the long run because the assets eventually move from low to high valued use c. In the short run because the demand curve becomes more elastic d. In the long run because the demand curve becomes more inelastic QUESTION 34 Attractive industries have all the following attributes, except a. High supplier power...
bonds with relatively low risk of default are called
1) Bonds with relatively low risk of default are called securities and have a rating of Baa (or BBB) a above; bonds with ratings below Baa (or BBB) have a higher default risk and are called A) investment grade; lower grade C) high quality; lower grade B) investment grade; junk bonds D) high quality; junk bonds 2) Which of the following bonds are considered to be default-risk free? A) municipal bonds...
Question 13 (0.2 points) Which one of the following is the computation of the risk premium for an individual security? E(R) is the expected return on the security, Rfis the risk-free rate, B is the security's beta, and E(RM) is the expected rate of return on the market. O 1) E(RM) - RF O2) B[E(RM) - RA O 3) E(R) - E(RM) 04) E(R) - [E(RM) + RA View hint for Question 13 Question 14 (0.2 points) Which one of...
2 Low 18. Based on Table 3, what is the liquidity risk premium? Table 3 Investment Maturity Liquidity Default Risk High Low 2 I 2 Low I 3 7 I Low Low 4 8 High High Low 5 8 Low High A. 3.40% B. 0.81% C. 1.50% 10000 UN Interest Rate 3.00% 3.81% 4.81% 5.25% 6.75% I 19. Based on Table 3, what is the default risk premium? A. 0.69% B. 1.25% C. 0.44% D. 1.50%
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