Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 27, 2024

If a financial asset has an expected return that is greater than what is necessary to compensate for its risk, what will bring the return

If a financial asset has an expected return that is greater than what is necessary to compensate for its risk, what will bring the return back in line with equilibrium?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Alan Melville

2nd Edition

0273634399, 978-0273634393

More Books

Students also viewed these Accounting questions

Question

★★★★★

Company A purchased a certain number of Company B's outstanding voting shares at $20 per share as a long-term investment. Company B had outstanding 20,000 shares of $10 par value stock. Complete the...

Answered: 1 week ago

Question

★★★★★

Compressed air is one of the key utilities in manufacturing facilities, and the total installed power of compressed-air systems in the United States is estimated to be about 20 million horsepower....

Answered: 1 week ago

Question

★★★★★

In each of the following hypothesis testing scenarios, determine whether or not failing to reject ????0 is a reliable decision. (a) ???? = 0.45. (b) ???? = 0.11. (c) ???? = 0.75. (d) ???? = 0.04.

Answered: 1 week ago

Question

★★★★★

Affordable Trailer Rental rents small trailers by the day for local moving jobs. This is its adjusted trial balance at the end of the current fiscal year: Required 1. From the information given,...

Answered: 1 week ago

Question

★★★★★

What happens when query subjects are incorrectly identified as facts? Question 1 0 Select one: A . Unwanted query split B . Outer join C . Cross product join D . Ambiguous join

Answered: 1 week ago

Question

★★★★★

LOAN 1 LOAN 2 LOAN 3 LOAN 4 Initial Interest Rate ? ? ? ? Loan Maturity (years) 20 20 20 20 % Margin Above Index 3% 3% 3% Adjustment Interval 1 year 1 year 1 year Points 1% 1% 1% 1% Interest Rate Cap...

Answered: 1 week ago

Question

★★★★★

5. In column I, Jayden wants to display a reminder to reorder plants if the store has 10 or fewer plants on hand. In cell I5, insert a formula using the IF function that tests whether the number of...

Answered: 1 week ago

Question

★★★★★

reminiscence therapy and life review therapy are approaches to assist older adults on reflecting on life aging and building a sense of self continuity however there are distinct differences between...

Answered: 1 week ago

Question

★★★★★

Eileen went to Las Vegas for Spring Break. While there she lost a bet at the roulette wheel, resulting in a shortfall of funds needed for the Fall semester's tuition. She bet on red, but the roulette...

Answered: 1 week ago

Question

★★★★★

If Happiness is crucial or intimate like our DNA as Layard then why are we still unhappy? Now if we think about it our reading so far provides us with ample answers as to what constitutes or...

Answered: 1 week ago

Question

★★★★★

Case study: (50 marks) -PART A On 1 July 2021, Tom Ltd acquired all the shares of Hanks Ltd on an ex-div . basis. Tom Ltd paid $850,000 cash and issued 120,000 shares which had a fair value of $5.00...

Answered: 1 week ago

Question

★★★★★

Are you telling a story, or have you got a lot of disconnected pages?

Answered: 1 week ago

Question

★★★★★

Have you looked carefully at the risks, assumptions and dependencies and documented them?

Answered: 1 week ago

Question

★★★★★

Have you got a one page summary that you are happy with?

Answered: 1 week ago

Previous Question Next Question