Danthine and Donaldson express the CCAPM for the market portfolio as: ÏM,t+1 − "f,t+1 = −(1+ƒ,t+1)p(m, †M,t+1)σ(mt)σ (FM,t+1) where the LHS is the equity risk premium of the market portfolio. Answer the following: (a) How do Reitz (1988) and Campbell and Cochrane (1999) explain the equity risk premium? (b) How do these empirical papers address the RHS of Equation (1)?

Q: Which of the following orders allows for partial execution?

A: FOK (Fill or Kill Order): This type of order allows being executed immediately at the specified…

Q: How is ARR calculated?

A: ARR: Accounting Rate of Return (ARR) is the rate of return earned on the investment made in a…

Q: Define three forms of EMH

A: Following are the three forms of EMH: Weak Form EMH: Recommends estimating all prior knowledge is…

Q: can you also explain what part is a. b. and c. please

A: A budget is an estimate of amount which is prepared by the management for various planning and…

Q: Req C is incorrect.

A: Equivalent unit of production is multiplied by cost per equivalent unit to compute the assignment of…

Q: A figured out

A: Pre determined Overhead rate Calculation  Overhead cost  $      28,80,000 Divided By  Direct…

Q: What is the after announcment?  This is from question a.

A: Debt Value = $2,700,000Current Debt-to-equity ratio = 30%Increased Debt-to-equity ratio = 50%EBIT =…

Q: the difference between a W-4 form and W-2 form.

A: Form W-4: Employee’s withholding allowance certificate. This form is filled by employees for their…

Q: What would the entry be for the letter H.?

A:

Q: put these numbers in T form

A: T-Account A collection of financial records that employ double-entry accounting is referred to…

Q: b/ Which theory best explains these three term structure facts?

A: The three term structure facts that are commonly referenced in finance literature are: The yield…

Q: is part b answered in this?

A: Ledger posting. : When any transaction is made journal entry is passed, after that those entries are…

Q: so where the 2nd ansawer

A: Relevant cost is the cost which alters under two alternatives. Variable cost hence are relevant and…

Q: Match the terms

A: Accounting principles are the accounting rules which an organization must follow while maintaining…

Q: ansawer

A: Where a partnership itself is generally not subject to income tax, individual partners (including…

Q: The first amount was inccorect

A: Solution:- When equal amount is paid each period at end of period, it is called ordinary annuity.…

Q: Describe about the NOL.

A: NOL means Net Operating Loss. This is a situation when company's deductions are more than it's…

Q: (d) On what basis should management select from these two methods to depreciate the machine? Justify…

A: The management should opt for reducing balance method of depreciation for the above scenario: This…

Q: can you solve by ansewring the question'a in a fromual.

A: Data given: Costs  of house(Purchase price) =$250,000 Down payment = 2% of the purchase price.…

Q: An oil company executive is considering investing $10.1 million in one or both of two wells: well 1…

A: NPV It is the present cash inflows less the present values of cash out flows. If the cash inflows…

Q: A $385,000 house is to be purchased for 25% down and monthly payments of $1200 for as long as…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Determining current portion of long-term note payable On January 1, Irving Company purchased…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: 4. Which of the following statements is correct? I. An entity shall present separately each…

A: As per IAS 1 Presentation of Financial Statements,  The objective IAS 1 of IFRS is to prescribe the…

Q: Float is defined as the difference between the:

A: The formula to compute float as follows:

Q: what about quesitons E and F?

A: Work in progress (WIP) also called work in process, is inventory that has begun the manufacturing…