Answer:
C. 1. Linearity of relationship between the dependent variable and the independent variable within the relevant range. 2. Constant variance of residuals for all values of the independent variable. 3. Independence of residuals. 4. Normal distribution of residuals.
Explanation:
The four keys assumptions that are examined in the case of simple regression with respect to the specification analysis is given below:
1. There should be relationship between the dependent and independent variable and that should be linear and do not cross the relevant range
2, The residual variances of the independent variable would remain the same
3. Residual independence
4. Residual normal distribution
These four should be considered
Hence, the option c is correct
Answer:
B. Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds
Explanation:
First of all, since the investor is risk averse and cannot afford to lose money on any risky investment, she should change the mix of her investment portfolio but without increasing risks. Corporate bonds that are AAA-rated carry a very low risk and pay a little higher than money market funds. So a small decrease in money market fund assets and an increase in AAA-rated bonds should yield a slightly higher return.
Investing in equities would be too risky and US Treasuries pay even less interests than money market funds.
Answer:
$38,000
Explanation:
The amount of cash collections would be computed as;
Cash collections = Beginning accounts receivable + Credit sales - Ending accounts receivable
Where;
Beginning accounts receivable = $5,000
Credit sales = $40,000
Ending accounts receivable = $7,000
Therefore,
Cash collections = [($5,000 + $40,000) - $7,000]
Cash collections = $38,000
Answer:, $27 per share
Explanation:
GIVEN THE FOLLOWING ;
Original Cost of stock per share = $26
Date purchased = 9th June
12th June, Stock sold at = $23 per share
On 30th June, Repurchasement cost = $24 per share.
Loss on stock = original cost of stock per share - sales price of stock
Loss on stock = $26 - $23 = $3
The customer in this case sold his stock at a loss and repurchases a similar stock within 30 days. This is called a washout sale and in this case, the loss incurred on the sold stock is added to the cost basis of the new stock purchased.
Repurchased price = $24
Loss on sold stock = $3 per share
Therefore, customer cost basis =
$24 + $3 =$27 per share.
Answer:
The correct answer is D. New trade
.
Explanation:
The "new" theory of international trade. These theories are based on imperfect competition. Among them are the following:
- Opportunity Cost Theory, by G. Haberler. Work is not the only resource nor is it homogeneous. It is based on the opportunity cost of a good.
- Monopolistic Competition Model, by Paul Krugman.
The "latest" recent developments that incorporate differences between companies. In this category, differences between companies are considered to understand this area. Among them are:
- Conclusions of Bernard, Redding and Schott. Increase the productivity of the entire industry. The expansion of the production of the exporting companies implies an increase in the demand for factors and an increase in the price of the inputs.
- R. E. Baldwin and R. Forslid. Liberalization brings welfare gains.
