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3 years ago

A stock has a beta of 1.3. The systematic risk of this stock is ____________ the stock market as a whole.

1 answer:

8 0

The systematic risk for a stock whose beta is 1.3 shows that the stock is <u>higher than</u> the stock market as a whole.

<h3>What is Beta in Stock Market?</h3>

The beta is the statistic that indicates to the trader how that stock performs in contrast to all comparable stocks, or at minimum to the stocks that make a related index.

The volatility of a stock is measured by beta, which is the extent to which its price swings in proportion to the wider stock market.

A beta larger than one suggests that a stock's price fluctuates more rapidly.
A beta smaller than one suggests a stock's price becomes less volatile than the market as a whole.
A beta of one suggests that the stock moves in unison with the entire market.

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In an imperfectly competitive labor market, the cost of labor inputs and the value of the products sold will _________ vary as m

eduard

Answer:

Both

Explanation:

To expand benefits, a monopolist will enlist labourers up to the point where the minor expense of work rises to their work request. This outcomes in a lower level of work than a focused work market would give, yet in addition a lower balance wage. Low unemployment rate will lead to low sales and productivity.

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3 years ago

A company reports on the cash basis. During the company's first year of business, it had sales on account of $1,000,000, invento

grandymaker [24]

Based on the information given the company's cash-basis income for its first year of operations is $350,000.

First step

Net sales revenues =Sales - Account receivable

Net sales revenues= $1,000,000 - $100,000

Net sales revenues = $900,000

Second step

Net expenditure on purchases =Inventory purchases - Account payable

Net expenditure on purchases =$400,000 - $50,000

Net expenditure on purchases = $350,000

Third step

Cash-basis income =Net sales revenues - Net purchases expenditure - Other expenses

Cash-basis income= $900,000 - $350,000 - $200,000

Cash-basis income= $350,000

Inconclusion the company's cash-basis income for its first year of operations is $350,000.

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8 0

2 years ago

A corporation makes an investment of $20,000 that will provide the following cash flows after the corresponding amounts of time:

s344n2d4d5 [400]

A) The company should not invest in the provided project due to the negative NPV of the project.

B) The NPV of the project comes out to be (286).

NPV is an abbreviated form of Net present value and computed by deducting the cash outflows from cash inflows at the present value.

Given values:

Cash flow of year 1: $10,000

Cash flow of year 2: $10,000

Cash flow of year 3: $2,000

Cash outflow (cost of investment) =$20,000

Step-1 Computation of PV of cash inflows of every year:

PV of year 1 = Cash inflow of year 1 / (1+ interest rate)^ 1

= $10,000 / (1+0.07) ^ 1

= $10,000 X 0.934579

= $9,346

PV of year 2 = Cash inflow of year 1 / (1+ interest rate)^ 2

= $10,000 / (1+0.07) ^ 2

= $10,000 X 0.873438

= $8,735

PV of year 3= Cash inflow of year 1 / (1+ interest rate)^ 3

= $2,000 / (1+0.07) ^ 2

= $2,000 X 0.816297

=$1,633

Step-2 Computation of total amount of PV of cash inflows:

$\rm\ PV \rm\ of \rm\ cash \rm\ inflows = \rm\ PV \rm\ of \rm\ year \rm\ 1 + \rm\ PV \rm\ of \rm\ year \rm\ 2 + \rm\ PV \rm\ of \rm\ year \rm\ 3\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$9,346 + \$8,735 + \$1,633\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$19,714$

Step-3 Computation of NPV:

$\rm\ NPV=\rm\ PV \rm\ of \rm\ cash \rm\ inflows- \rm\ Cost \rm\ of \rm\ investment\\\rm\ NPV=\$19,714-\$20,000\\\rm\ NPV=\$ (286)$

Therefore, the NPV comes out to be a negative amount of 286, and hence, the company should not accept the project.

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5 0

2 years ago

In Business Brilliant, Louis Schiff writes that most millionaires are ____ ; for example, they believe that "it's important in n

kumpel [21]

Answer: Machiavellian

Explanation:

5 0

3 years ago

The free market idea is generally associated with which economic system?

ehidna [41]

Answer:

The term “free market” is sometimes used as a synonym for laissez-faire capitalism. When most people discuss the “free market,” they mean an economy with unobstructed competition and only private transactions between buyers and sellers.

hope this helps

7 0

3 years ago