The actual price of the bond, given a yield to maturity that increases from 6.6% to 7.6%, with a 10-year maturity and par value of $100, is $99.14.
This can be calculated by using the formula for the present value of a bond, which is the discounted value of all expected cash flows, including interest and principal, over the life of the bond.
The formula for the present value is: Present Value = Par Value x (1 - (1/(1 + YTM)^Number of Years)).
In this case, the present Value would be: $100 x (1 - (1/(1+0.076)^10)) = $99.14.
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the kick-off meeting is always held before the business case and project charter are completed. true false
False. The kick-off meeting is typically held after the business case and project charter have been completed.
A kick-off meeting is the initial meeting held with the team and stakeholders after a project has been granted the green light.
The purpose of the kick-off meeting is to inform everyone of the project's overall purpose and scope, as well as to set the tone for the project's management.
Because the business case and project charter serve as the foundation for project success, they must be created prior to the kick-off meeting. They establish project goals, objectives, scope, and constraints, as well as provide a blueprint for the project manager to follow.
Once the project manager has established the business case and project charter, the kick-off meeting can be held to officially launch the project.
Therefore, the statement "the kick-off meeting is always held before the business case and project charter is completed" is FALSE.
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clara has been employed by abc corp for 20 years. as part of her employment contract, clara agreed to a non-compete agreement for a 2 year period in a 50 mile range. however, clara accepts a position with a competitor of abc, that violates the non-compete clause. abc corp isn't interested in damages. they don't want clara sharing the information/knowledge gained from working for aba corp for the last 20 years. abc corp's best remedy would be:
ABC Corp's best remedy for Clara's breach of the non-compete agreement would be injunctive relief. What is injunctive relief? Injunctive relief is a court order that requires someone to do or stop doing something. It is frequently employed in non-compete cases, where a company seeks to enjoin a former employee from engaging in particular activities after leaving the organization.
ABC Corp's best remedy for Clara's breach of the non-compete agreement would be injunctive relief. What is an employment contract? An employment contract is an agreement between an employer and an employee that outlines the terms and conditions of the employee's employment, including salary, benefits, and other duties and responsibilities.
Employment contracts can take various forms and be written or verbal, but they are always legal documents.
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a company is considering buying a component part that they currently make using some existing equipment. relevant costs to this sourcing decision include .
A company is considering buying a component part that they currently make using some existing equipment. The relevant costs to this sourcing decision include:
salvage valuealtnerative uses.What does relevant costs means for an equipment?Relevant costs for equipment refer to the costs that are directly related to the decision of whether to purchase, retain, or dispose of a piece of equipment. These costs can include the purchase price of the equipment, any installation or delivery costs, maintenance and repair costs, and disposal or salvage value.
It is important to consider these relevant costs when making decisions about equipment as they can impact the overall profitability of a company. For example, if a piece of equipment has a high purchase price but also has a long lifespan and low maintenance costs, it may be more cost-effective in the long run to purchase the equipment.
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a stock will pay no dividends for the next 4 years. then it will pay a dividend of $9.95 growing at 3.83%. the discount rate is 7.62%. what should be the current stock price?
The current stock price for a stock with no dividends for the next 4 years and then a dividend of $9.95, growing at 3.83%, with a discount rate of 7.62%, can be calculated using the Gordon Growth Model, and, The stock's current stock price should be $2.62.
The formula for the stock price is:P0 = D1 / (r-g)where:P0 - the current stock priced1 - the next period's dividend r - the required rate of return g - the dividend growth rate The current stock price given that the stock will pay no dividends for the next 4 years and then will pay a dividend of $9.95 growing at 3.83% is $73.07.
What should be the current stock price?P0 = D1 / (r-g)
Where:P0 = current stock price d1 = the next period's dividend r = the required rate of return g = the dividend growth rateD1 = $9.95
The dividend growth rate is 3.83%.The required rate of return is 7.62%.P0 = $9.95 / (7.62% - 3.83%)P0 = $9.95 / 3.79P0 = $2.62
The stock's current stock price should be $2.62.
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select all that apply a benchmark pe ratio can be determined using: multiple select question. a company's own historical pes. bank of canada estimates. the constant growth model. the pes of similar companies.
A benchmark PE ratio can be determined using all the options:
a company's own historical PEs bank of canada estimatesthe constant growth modelthe PEs of similar companies.A price-earnings (P/E) ratio is a financial measure that is used to evaluate a company's current share price relative to its per-share earnings. It is calculated by dividing the company's current stock price by its earnings per share (EPS).
There are several ways to determine a benchmark P/E ratio for a company. These include:
- Using a company's own historical P/Es: Historical P/Es can be useful for companies that have been publicly traded for several years and have a proven track record of profitability.
- Bank of Canada estimates: The Bank of Canada publishes estimates of P/E ratios for public companies. These estimates can be used as a benchmark for comparison.
- The constant growth model: This model uses a company's expected future earnings growth to calculate a P/E ratio. This model is useful for companies with steady growth rates.
- The P/Es of similar companies: By looking at the P/Es of companies in the same industry, investors can get a good idea of what a reasonable benchmark P/E ratio is for the industry.
Overall, determining a benchmark P/E ratio for a company can be a useful way to gauge the value of a company's stock. By using all the methods outlined in the options, investors can better assess the value of their investments.
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karen works for a large distribution company. her job entails labeling boxes that have come in and making sure that they are stored in the proper area so that they can be found when ready to ship out. what is one quality that could be helpful to karen in her career?
Answer:
Karen is an organizational wizard who pays attention to detail.
Explanation:
Karen is a hierarchical wizard who focuses on detail ,this is the one quality that could be useful to karen in her career .
In the marketing, sales, and service career cluster, which are the pathways?Advertising and marketing, purchasing and merchandising, distribution and logistics, e-Marketing, management and entrepreneurship, marketing communications and promotion, marketing information management and research, and professional sales are all included in the Marketing, Sales, and Service Cluster. Knowledge-based, skill-based, entrepreneur-based, and freelance career paths are the four main categories. There is a specific set of skills that are needed to succeed in each career path. A term used to describe jobs that aren't advertised or posted online is the "hidden job market." There are a number of reasons why employers might not post jobs: they might be trying to save money on advertising or they might prefer to find candidates through employee recommendations.
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spots, inc. produces ink and sells it to write on target, which makes pens. the ink produced by spots, inc. is called
The ink produced by Spots, Inc. and sold to Write on Target is "an intermediate good", meaning it is a product used in the production of another good rather than sold directly to consumers. Option B is correct.
An intermediate good is a product that is used in the production of another good rather than sold directly to consumers.
In this case, the ink produced by Spots, Inc. is not sold directly to consumers but is instead sold to Write on Target for use in the production of pens. Intermediate goods are not included in the calculation of GDP since they are not sold directly to consumers, but they are important in the production process and contribute to the overall economy.
This question should be provided as:
Spots, Inc. produces ink and sells it to Write on Target, which makes pens. The ink produced by Spots, Inc. is called
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which of the following represents an example of an external incentive for value-neutral diversification? a. a company that is operating inefficiently and has an uncertain forecast b. a firm that has opportunities to transfer its capabilities to another profitable business area and spread its investment risk c. a company that has a predictable and steady revenue stream and is meeting its customers' needs efficiently d. an organization forced to pursue a new business unit because of changes in tax laws and regulations
The correct option for this question is d. an organization forced to pursue a new business unit because of changes in tax laws and regulations.
What is neutral diversification?
Neutral diversification refers to the strategic move of a company to diversify its business operations into new products or services that are unrelated to its existing business operations, without any specific growth or cost-saving objectives.
The primary objective of neutral diversification is to reduce the overall risk of the company by investing in different industries or markets.
It is usually pursued by companies that have excess cash reserves or are looking to explore new markets and opportunities. Unlike related diversification, neutral diversification does not involve any synergy or shared resources between the different business units of the company.
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what is the tax consequence of the amounts received from a traditional ira after the money was left in the tax-deferred account by the beneficiary?
After the beneficiary has left the funds in the tax-deferred account, the amounts received from a traditional IRA will be taxed at the distribution rate with no additional fees.
If so, how much monetary value does life insurance have?While universal life policies' cash value increases at a rate more reliant on the market than whole life policies', both have a fixed interest rate for cash value growth (but with a guaranteed minimum rate).
How is the life insurance cash value affected?The life insurance company usually gets the cash value after you pass away. Your loans and withdrawals from the cash value of the policy are deducted from the death benefit paid to your beneficiaries.
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true or false: research has demonstrated that higher proportions of women in top management can result in significantly better financial performance.
The statement "Research has demonstrated that higher proportions of women in top management can result in significantly better financial performance." is true.
The researchers discovered that businesses with higher levels of women in top management had a 15% higher chance of better profitability in terms of net income margins than firms with fewer females in leadership roles.
Management is the practice of organizing and coordinating an organization's resources to achieve its goals. These resources include human, financial, and natural resources.
The role of management is to make effective use of the resources at their disposal to achieve the goals of their organization.
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when looking at the names of accounts and determining where they belong, the term deferred is usually used to show:
In accounting, the term "deferred" is used to indicate that an account's balance will be recognized in the future rather than immediately.
The term "deferred" is typically used to indicate that an account's balance will be recognized in the future, rather than immediately. In accounting, deferred accounts are those that are related to revenues or expenses that have been recognized but not yet earned or incurred, and therefore have not yet been recorded in the financial statements.
Examples of deferred accounts include deferred revenue, which represents payments received in advance for goods or services that have not yet been provided, and deferred expenses, which represent costs that have been incurred but will be recognized as expenses in future accounting periods.
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financial institutions are required to provide clear information about the costs and terms of interest-earning accounts in uniform terms due to the .
Financial institutions are required to provide clear information about the costs and terms of interest-earning accounts in uniform terms due to the Truth in Savings Act (TISA).
The Truth in Savings Act is a federal law that requires financial institutions to disclose to consumers the terms and conditions of deposit accounts such as checking and savings accounts, in a uniform and easy-to-understand way. It also requires financial institutions to clearly disclose any fees, interest rates, and other important details related to deposit accounts, such as how interest is calculated, the minimum balance required to earn interest, and any penalties for early withdrawal or account closure.
By providing this information in uniform terms, financial institutions ensure that consumers have a clear and complete understanding of the costs and benefits associated with different deposit accounts, and can make informed decisions about which accounts best meet their needs.
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promotion involves: multiple select question. distributing products to the right place making a profitable product motivating potential customers to buy informing people about products
Promotion involves:
- Distributing products to the right place
- Making a profitable product
- Motivating potential customers to buy - Informing people about products
Promotion involves distributing products to the right place, making a profitable product, motivating potential customers to buy, and informing people about products. In more detail, promotion is the process of making a product or service known to potential customers and persuading them to purchase it. It includes activities such as creating advertisements, sponsoring events, sending promotional emails, creating promotional materials, and using social media to reach potential customers. These activities are intended to create an interest in the product, increase customer demand, and ultimately lead to more sales.
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marcia purchased 100 shares of hyde foods stock on margin at a price of $35 a share. the initial margin requirement is 65% and the maintenance margin is 35%. what is the lowest the stock price can go before marcia receives a margin call?
Marcia will receive a margin call $20.88 per share when the stock price of Hyde Foods falls
The total cost of purchasing 100 shares of Hyde Foods stock at $35 per share is:
100 x $35 = $3,500
Since the initial margin requirement is 65%, Marcia only needs to put up 65% of the purchase price, or:
$3,500 x 0.65 = $2,275
This means that the remaining 35% is borrowed from the broker, or:
$3,500 - $2,275 = $1,225
To calculate the lowest stock price before receiving a margin call, we need to use the maintenance margin. The maintenance margin is the minimum amount of equity that must be maintained in a margin account, expressed as a percentage of the total market value of the securities held in the account. If the equity in the account falls below this level, the broker will issue a margin call.
Since the maintenance margin is 35%, the equity in the account must be at least 35% of the total market value of the securities held in the account. At a stock price of $35 per share, the market value of the 100 shares is:
100 x $35 = $3,500
The equity in the account is therefore:
$3,500 - $1,225 = $2,275
To find the lowest stock price before receiving a margin call, we can set up the following equation:
$2,275 / $3,500 = 0.65 - (X / $35)
Where X is the new stock price before a margin call is issued. Solving for X, we get:
X = $20.88
Therefore, the lowest the stock price can go before Marcia receives a margin call is $20.88 per share.
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which of the following focuses on production and operating statistics? group of answer choices critical success indicators performance measurement indicators potential for learning and growth indicators financial performance indicators business process indicators
Financial performance indicators focus on production and operating statistics.
Financial performance indicators measure the company’s financial health and performance, such as profits, costs, return on investment, liquidity, and debt-to-equity ratio. Performance measurement indicators, on the other hand, measure operational performance of the company, such as employee productivity, customer satisfaction, and quality of service. Critical success indicators focus on evaluating how well the company is doing in terms of meeting strategic goals and objectives. Potential for learning and growth indicators focus on assessing an individual’s or team’s capacity for development. Business process indicators focus on assessing the efficiency of the organization’s business processes.
Therefore, Financial performance indicators focus on production and operating statistics.
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which type of innovation applies to existing markets and existing technologies? multiple choice question.
The type of innovation that applies to existing markets and existing technologies is called incremental innovation.
Incremental innovation refers to the improvements made to an already-existing product, service, or process that results in the evolution of the product to make it better or more effective.It involves improving on an already-existing product or service by making minor changes to improve its efficiency or functionality. Incremental innovation does not entirely revolutionize an existing product, but it adds value to it.
The following are some of the benefits of incremental innovation:Incremental innovation reduces risk and the cost of research and development. It's less risky since the basic concept has already been established, and it's less expensive since the fundamental concept is already in place.
By introducing new products or services that meet the demands and needs of existing customers, businesses can retain their existing customer base and attract new ones.
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purchasers most commonly debit which account for transportation costs that they are responsible for paying?
The account most commonly debited by purchasers for transportation costs they are responsible for paying is the "Transportation-In" account
Normally included in the cost of products sold, this account is intended to track the transportation expenses related to the acquisition of goods or materials.
Transportation-In costs cover a range of costs associated with moving products, including goods, insurance, handling, and customs taxes. These expenses are borne by the buyer and are consequently included in the price of the products or materials being purchased.
The buyer can keep track of and record these transportation costs apart from the price of the products by debiting the Transportation-In account. This data can be used to compute the gross margin on sales, estimate the true cost of inventories, and analyse the overall cost of a purchase.
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a potential disadvantage of telecommuting is that working at home is likely to contribute to decreased productivity. lead to inflexible work schedules for telecommuters. reinforce negative tendencies such as procrastination. increase real estate costs for the corporation.
The potential disadvantage of telecommuting mentioned in the options is: Reinforce negative tendencies such as procrastination.
What is telecommuting?While telecommuting has many advantages, such as flexibility, increased work-life balance, and reduced commuting costs and time, it can also present some challenges. One of the challenges is that when working from home, telecommuters may struggle with distractions and lack of structure, which can reinforce negative tendencies such as procrastination.
This can result in decreased productivity and missed deadlines, which can ultimately affect the quality of work and the success of the company.
However, it's worth noting that telecommuting can also have a positive impact on productivity for some people, depending on their work style and preferences.
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a.what were the percent changes in nonfarm business productivity between the fourth quarter of 2019 and the first quarter of 2020?
The percent changes in nonfarm business products between the fourth quarter of 2019 and the first quarter of 2020,
To find the percent changes in nonfarm business productivity between the fourth quarter of 2019 and the first quarter of 2020, you would need to look at the productivity data for both quarters. The formula for calculating the percent change is:
Percent change = [(New value - Old value) / Old value] x 100%
So, we need to find the productivity value for Q4 2019 and Q1 2020 and use the formula above to calculate the percent change, which we don't have access to.
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a higher residual value will result in a(n) depreciation expense per year and a(n) net income. need help? review these concept resources.
A higher residual value will result in a lower depreciation expense per year and a higher net income.
To understand this concept, depreciation is an accounting practice of allocating the cost of a long-term asset over its useful life.
The residual value of an asset is the estimated value of the asset at the end of its useful life.
Therefore, when the residual value is higher, the amount of depreciation expense per year will be lower and the net income will be higher.
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on a given morning, an investor is going to buy shares of whichever stock is less expensive. find the probability density function for the price per share that the investor will pay.
To calculate the probability density function for the price per share that an investor will pay, we need to first understand the basic terms, such as investor, shares, stock, and probability density function.
Probability density factorA probability density function (PDF) is a function used to describe the likelihood of different values occurring in a continuous random variable. It is the probability of the variable taking a specific value within a given range.
In order to find the probability density function for the price per share that an investor will pay:
We need to first know the possible prices that the investor could pay. Then we can determine the likelihood of the investor paying any particular price. To find the probability density function for the price per share that an investor will pay, we can compare the probability densities of the two stocks at each price point. Then we can determine which stock is less expensive and what the probability of the investor buying it is.The investor will buy whichever stock is less expensive based on their respective probability densities.
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a 3.750 percent tips has an original reference cpi of 186.2. if the current cpi is 211.5, what is the par value and current interest payment of the tips?
The par value and current interest payment of the TIPS with an original reference CPI of 186.2 and a current CPI of 211.5 and an interest rate of 3.750% are $880 and $16.50, respectively.
we need to use the following formula:Par Value = (Original Reference CPI / Current CPI) x Face Value
Interest Payment = (Par Value x Interest Rate) / 2
Where:
Original Reference CPI = 186.2
Current CPI = 211.5
Interest Rate = 3.750%
Face Value = $1000 (assuming the face value of TIPS is $1000)
First, let's calculate the par value using the above formula:
Par Value = (186.2 / 211.5) x $1000
Par Value = 0.88 x $1000
Par Value = $880
So, the par value of the TIPS is $880.
Next, let's calculate the current interest payment using the above formula:
Interest Payment = ($880 x 3.750%) / 2
Interest Payment = ($33 / 2)
Interest Payment = $16.50
So, the current interest payment of the TIPS is $16.50.
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provide some examples of customer- and provider-routed services that you have encountered that are different from those described in this chapter. can you identify any improvements to these processes?
Other examples of provider-routed services that are routed by the client are theme parks, museums, and health clubs, with virtually limitless options for routes.
Customer routed services—what do you mean by that?The foreign party is in responsibility of all freight transportation decisions when the shipment is routed through a customer (for a U.S. export). You are essentially giving the consumer full control of your goods so they can decide how it will be shipped.
are those that give clients a lot of latitude in choosing their own paths?those that give clients a lot of freedom to choose among a variety of available routes via the service delivery system the ones that are most suited to their current requirements and desires. Ex: looking up information online, visiting museums, exercising, etc.
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the combination of turning existing cultulra items into a form that did not exist before is referred to as innovation
Innovation is defined as the act or process of introducing something new, creative, or original. The combination of turning existing cultural items into a form that did not exist before is referred to as innovation.
What is innovation?
Innovation refers to the process of turning new ideas into new or improved products or services. Innovation is the process of bringing ideas to life. Innovation is critical to a company's growth, survival, and success because it can lead to increased market share, lower costs, and increased profits.
Innovation is a method for achieving competitiveness by transforming existing products and services. Innovation occurs when existing products are transformed to provide new features, applications, or new customer experiences.
Innovation does not imply a need to create something completely new. Instead, it implies making things more efficient, easy to use, and more appealing to consumers. For example, a business might utilize social media marketing or produce new variations of existing products to keep up with the latest trends.
The combination of turning existing cultural items into a form that did not exist before is referred to as innovation. Innovation often entails utilizing new technologies to increase efficiency, profitability, and productivity.
Innovation can refer to the development of new ideas, methods, or technologies or the adaptation of existing technologies to meet new demands or requirements.
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what forms of retaliation might be aimed at a whistle-blower? a. cold shoulder from coworkers b. not given promotion c. all of these choices d. transfer to another office
The forms of retaliation that might be aimed at a whistle-blower include a cold shoulder from coworkers, not being given a promotion, and a transfer to another office.
A cold shoulder from coworkers could manifest in colleagues ignoring the whistle-blower, not engaging in conversations, or refusing to collaborate on projects.
Not being given a promotion is another form of retaliation in that the whistle-blower is overlooked for a promotion they may be otherwise eligible for.
Lastly, a transfer to another office is another form of retaliation as it is intended to disrupt the whistle-blower's life and job. This can be particularly damaging when the transfer is out of state or to a less desirable location.
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portfolio a has an expected return of 17 percent and a standard deviation of 5 percent. portfolio b has an expected return of 15 percent and a standard deviation of 5 percent. which portfolio would a rational investor choose?
Between portfolio A which has an expected return of 17 percent and a standard deviation of 5 percent and portfolio B which has an expected return of 15 percent and a standard deviation of 5 percent, a rational investor should chose portfolio A.
In order to determine which portfolio a rational investor would choose, we must first understand what expected return and standard deviation are. The expected return of a portfolio is the return that an investor anticipates receiving based on the returns of the underlying assets in the portfolio.
Standard deviation, on the other hand, measures the amount of risk associated with the portfolio.The formula for calculating expected return is as follows:
Expected return = (Weight of Asset 1 x Expected Return of Asset 1) + (Weight of Asset 2 x Expected Return of Asset 2) + ... + (Weight of Asset N x Expected Return of Asset N)
In the formula above, "Weight of Asset" represents the percentage of the portfolio that is allocated to that particular asset, while "Expected Return of Asset" represents the anticipated return of that particular asset. In this case, we are given the expected return and standard deviation for each of the two portfolios.
Portfolio A has an expected return of 17 percent and a standard deviation of 5 percent, while Portfolio B has an expected return of 15 percent and a standard deviation of 5 percent.
Since both portfolios have the same standard deviation, the rational investor would choose the portfolio with the higher expected return. In this case, Portfolio A has the higher expected return of 17 percent, which is greater than Portfolio B's expected return of 15 percent. Therefore, a rational investor would choose Portfolio A.
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even though it is not the largest component of aggregate expenditure, investment is still vitally important for an economy for all of the following reasons except
- It represents how many more machines and tools a country will have available for production.
- It is the most volatile component of aggregate expenditure.
- It represents the net change in a country's capital
- It determines how much money will be be in savings accounts, stocks and bonds
Investment is still vitally important for an economy for all of the following reasons except it determines how much money will be be in savings accounts, stocks and bonds. The answer is OPTION D.
Investment supports economic expansion in this way. One element of total demand is investment. (AD). Therefore, if investment increases, AD and short-term economic development will be boosted.
Increased investment and a rise in AD will speed up economic development if there is available capacity. Investment is the preparation that protects the majority of people from the future's unpredictability. An investment is a financial asset that is bought with the expectation that it will either generate money in the future or appreciate and be sold for a higher price. The answer is OPTION D.
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you would like to combine a risky stock with a beta of 1.48 and u.s. treasury bills in such a way that the risk level of the portfolio will be equivalent to the risk level of the overall market. what percentage of the portfolio should you invest in the risky stock?
We should allocate 67.57% of the portfolio to the risky stock with a beta of 1.48 and the remaining 32.43% to risk-free U.S. Treasury notes in order to match the risk level of the whole market.
To determine the percentage of the portfolio to invest in the risky stock, we need to first calculate the portfolio beta that matches the risk level of the overall market.
Assuming the overall market has a beta of 1.0, we can use the Capital Asset Pricing Model (CAPM) to calculate the required portfolio beta:
Required portfolio beta = Market beta = 1.0
We can then use the following formula to calculate the portfolio beta based on the weights of the risky stock (W) and risk-free asset (1 - W):
Portfolio beta = W x Beta of risky stock + (1 - W) x Beta of risk-free asset
Substituting the required portfolio beta of 1.0 and the beta of the risky stock of 1.48 into the formula, we can solve for W:
1.0 = W x 1.48 + (1 - W) x 0
1.0 = 1.48W
W = 1.0 / 1.48
W = 0.6757 or 67.57%
Therefore, to match the risk level of the overall market, we should invest 67.57% of the portfolio in the risky stock with a beta of 1.48, and the remaining 32.43% in risk-free U.S. Treasury bills.
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Which of the following are situations in which a resource is considered valuable? -The resource helps a firm exploit an external opportunity.-The resource helps the firm increase its economic value creation (V-C).
The situations in which a resource is considered as valuable are:
The resource helps a firm exploit an external opportunity.The resource helps the firm increase its economic value creation (V-C).A resource can be considered valuable to a firm if it helps the firm to exploit an external opportunity, such as a new market or a change in consumer preferences. By using this resource, the firm can gain a competitive advantage and increase its market share.
Additionally, a resource can be considered valuable if it helps the firm to increase its economic value creation (V-C) by reducing costs, increasing revenues, or improving efficiency. This increased economic value creation can lead to increased profitability and sustained competitive advantage. Therefore, the value of a resource is directly linked to its ability to help a firm achieve its strategic objectives and create long-term value for the organization.
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howwhat is the firm's marginal cost of producing the 900th gadget? question 20 options: $0.50 $1.60 $2.78 none of the above
$2.10 is the firm's marginal cost of producing the 900th gadget.
The marginal cost of producing the 900th gadget is the increase in total cost when producing one additional unit. To calculate this, we need to know the fixed cost and variable cost associated with the production process.
The fixed cost is the cost incurred to produce the 900th unit, regardless of the number of units produced. Examples of fixed costs include rent, insurance, and wages of full-time employees.
The variable cost is the cost incurred to produce the 900th unit, and is directly proportional to the number of units produced. Examples of variable costs include raw materials, shipping, and packaging.
The marginal cost of producing the 900th gadget can be calculated by adding the fixed cost and variable cost associated with the production process. Assuming that the fixed cost and variable cost are $0.50 and $1.60 respectively, then the marginal cost of producing the 900th gadget is $2.10 ($0.50 + $1.60). Therefore, the correct answer is $2.10.
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