risk premium is
A) a measure calculated to reflect the riskiness of future profits.
B) subtracted from the discount rate when calculating the present value of a future stream of profits.
C) lower the more risky the future stream of profits.
D) an additional compensation paid to the workers of a business enterprise.
Correct Answer:
Verified
Q4: Owners of a firm want the managers
Q7: Economic profit is the difference between
A)total revenue
Q8: Consider a firm that employs some resources
Q9: Which of the following is NOT a
Q10: economic profit is positive,
A)total revenue exceeds total
Q12: When a firm is a price-taking firm,
A)the
Q14: Economic theory is a valuable tool for
Q15: Which of the following statements is true?
A)Shareholders
Q17: Which of the following statements is false?
A)Explicit
Q18: The principal-agent problem arises when
A)the principal and
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