Answer:
4%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 6% - 0.2 × (16% - 6%)
= 6% - 0.2 × 10%
= 6% - 2%
= 4%
The (Market rate of return - Risk-free rate of return) is also known as market risk premium
Answer:
185.531532 months
15.5 years
Explanation:
We use the NPER formula in this question that is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $50,000
Future value = $0
Rate of interest = 9% ÷ 12 months = 0.75%
PMT = $500
The formula is given below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the answer in months would be 185.531532 month
And, in year it would be 15.5 years after dividing by 12 months, the number of year comes
Factors of production are the parts of the economy that: c. are necessary for creating goods and services.
Option C
Answer:
B. 1 and 2.
Explanation:
Life insurance policy can be defined as a contract between a policyholder and an insurer, in which the insurer agrees to pay an amount of money to a specific beneficiary either upon the death of the insured person (decedent) or after a set period of time.
A decedent refers to a deceased person who is no longer able to control his or her properties (wealth).
Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.
This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.
Death benefit proceeds from a life insurance policy are included in a decedent's gross estate in the following circumstances:
I. The decedent gave the policy to his father four years ago, but retained the right to change the name of the beneficiary.
II. The policy beneficiary is a grantor trust of the decedent but the policy is owned by a closely-held corporation.
Answer:
Option a
Explanation:
In simple words, value maximization refers to the process under which the managers of an organisation tries to make or increase the existing economic profits, that is, the money left with the organisation after paying for the obligations of all the money providers including the lat in hierarchy, the equity shareholders.
Value maximization can be performed by changing the capital structure which affects the payment obligations. The value maximization affects all the stakeholders of the organisation therefore, the decision should be made by tasking into consideration them all.