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NEW QUESTION: 1
The nominal required rate is determined by the inflation premium, the risk premium, and the:
A. exchange rate impact.
B. liquidity risk.
C. nominal risk-free rate.
D. real risk-free rate.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The equation for the nominal risk free rate is:
RequiredReturnnominal= [(1 + Risk-FreeRatereal) * (1 + Inflation Premium) * (1 + Risk Premium)] - 1 The market risk premium is used when determining the security market line (SML) and equals the required market return minus the nominal risk-free rate. Liquidity risk is a part of total risk which is measured by the risk premium. The exchange rate is not a factor in this calculation.

NEW QUESTION: 2
If credit terms of "1/10, net 35" are offered, the approximate cost (using 365 days) of not taking the discount and paying at the end of the credit period would be __________.
A. 11.05%
B. 15.8%
C. 10.0%
Answer: B
Explanation:
(1 + 0.01/0.99)365/25 - 1 = 15.8%.

NEW QUESTION: 3

A. Option D
B. Option E
C. Option B
D. Option C
E. Option A
Answer: E

NEW QUESTION: 4
The Score is divided into which two sections? (Choose two.)
A. Stages
B. Operators
C. Data sets
D. File sets
E. Schemas
Answer: B,C