The market has an expected rate of return of 12.6 percent. The long-term government bond is expected to yield 4.8 percent and the U. S. Treasury bill is expected to yield 2.7 percent. The inflation rate is 3.2 percent. What is the market risk premium?
a. 7.8 percent
b. 9.4 percent
c. 9.9 percent
d. 8.5 percent
e. 9.3 percent
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The market has an expected rate of return of 12.6 percent. The long-term government bond is expected to yield 4.8 percent and the U. S. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Smith was employed as a salesman for borden, inc., which sold food products in 63 counties in arkansas, 2 counties in missouri, 2 counties in oklahoma, and 1 county in texas.
Answers (1)
If bonds are sold between interest payment dates, the amount of cash the issuer receives is a) equal to the market value of the bonds. b) equal to the face value of the bonds. c) less than the market value of the bonds.
Answers (2)
Who is affected negatively when a country's currency is weak? Give domestic and foreign examples
Answers (1)
Cherries on Top, a national ice cream shop, is struggling financially to keep up with the bigger chains.
Answers (1)
The public relations department has played a crucial role in Vencor Inc.’s success. Top management perceptions and the abilities of the concerned authorities were two strengths of the department.
Answers (2)
New Questions in Business
Waterway Industries can produce 100 units of a component part with the following costs: Direct Materials $15800 Direct Labor 6900 Variable Overhead 16800 Fixed Overhead 12000 If Waterway Industries can purchase the component part externally for
Answers (1)
Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $45,500 for medical insurance and contribute an additional $10,000 to a retirement program. 1.
Answers (1)
Here are selected data for Wilson Company: Estimated manufacturing overhead $ 247 comma 760$247,760 Factory utilities $30,200 Estimated labor hours 35,000 Indirect labor $22,400 Actual direct labor hours 36,000 Sales commissions $53,700 Estimated
Answers (1)
Advanced Analysis) Suppose that the linear equation for consumption in a hypothetical economy is: C = 40 + 0.8Y Also suppose that income (Y) is $400. Determine the values for the following: MPC, MPS, C (consumption), APC, S (savings), APS
Answers (1)
In international business, a relatively high level of fixed costs can make it economical to perform a particular activity in several locations at once. True / False.
Answers (1)