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A polynomial of degree zero is a constant term

The grouping method of factoring can still be used when only some of the terms share a common factor A True B False

The sum or difference of p and q is the of the x-term in the trinomial

A number a power of a variable or a product of the two is a monomial while a polynomial is the of monomials

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Q: What will happen to the expected return on a stock with a beta of 1.5 and a market risk premium of 9 percent if the Treasury bill yield increases from 3 percent to 5 percent?
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Related questions

Who sells and manages premium bonds?

hm treasury

The real risk-free rate of interest is 4 percent Inflation is expected to be 2 percent this year and 4 percent during the next 2 years Assume that the maturity risk premium is zero What is the yield?

The answers are 7%, 7.33%.

The market risk premium is measured by?

The market risk premium is measured by the market return less risk-free rate. You can calculate the market risk premium as market risk premium is equal to the expected return of the market minus the risk-free rate.

Why would the cost of equity increase if the risk-free rate increases?

I start my disclaimer that i might be wrong..But i must give it a Try...Now According to the cost of equity formula it is =Rf+B(Risk premium),,,,risk premium is nothing but the difference b/w the equation becomes Rf+B(Rm-Rf) Rm is Expected returns from the stock........When the Rf increases Ist part of the equation increases the cost of equity whereas if we see the second part of the equation decreases the cost of Equity(If Rm is kept constant)......but As Rf increases the Rm also increases and hence the The Second part of the equation Also increases so the effect of Increases Cost of equity....I hope i made some sense....

Can insurance carrieirs demand overpayment if they are no longer the carrier?

I am not sure what you mean by 'overpayment', but in many cases a policy is initiated with expected criteria. At the end of the policy period, the carrier may audit the criteria and if it is discovered that the expected premium was too low to cover the insurance company's exposure then they can demand the difference in the premium earned and the premium paid.

What would you expect to happen to the spread between yields on commercial paper and Treasury bills if the economy were to enter a steep recession?

The spread will widen. Deterioration of the economy increases credit risk, that is, the likelihood of default. Investors will demand a greater premium on debt securities subject to default risk.

If 20000 shares are reacquired as treasury shares at cost of 12.00 per share and par value is 10.00 per share what should be the journal entry?

debit treasury stock 200000debit premium 40000credit cash 240000

What is the element that comprises the rate manual in insurance?

pure premium, debt exposure and expected loss ratio

How much dos baby health insurance?

Baby's insurance cost will be very less. As the age increases the insurance premium increases. you can find out your answer in

What is the effect of a bonus issue on the share capital and share premium account?

Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.

Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?

Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)

How do you calculate market risk premium for a firm?

Risk premium = Company's risk (standard deviation of the historical stock returns of the market as a whole) - Risk-free rate of return (standard deviation of the historical treasury bonds' returns) - Inflation

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