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2 years ago

A stock with a beta equal to −1.0 has zero systematic (or market) risk. a. True b. False

1 answer:

8 0

The statement above is FALSE.
A stock with a beta equal to -1 does not have zero systematic risk.
Systematic risk refers to the uncertainty that is inherent to the entire stock market segment; it is made up majorly of the daily fluctuations in the price of stocks. Beta is the measure of the systematic risk of a stock in comparison to the market as a whole. Beta is also used to compare a stock market risk to that of other stocks.
A stock with a beta value of -1 indicates that the stock price will be less volatile than the market. A stock with a beta value of 1 indicates that the stock price will move with the market.

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A subsistence economy is one that ________. A subsistence economy is one that ________. meets its needs without working for wage

BigorU [14]

Answer:

The options in the question are not well aligned,find below question with properly aligned options:

A subsistence economy is one that ________.

a. meets its needs without working for wages and purchasing necessities

b. meets its needs by overfishing lakes and rivers

c. purchases resources for immediate use

d. meets is needs while causing ecosystem destruction

e. purchases goods and services from others

Hence the correct option is A,meets its needs without working for wages and purchasing necessities

Explanation:

In a subsistence economy,every household provides for its own basic needs,without any need for specialization that leads to exchange.

Specialization is act of engaging in what one knows how to do best, that way efficiency and effectiveness are guaranteed, as every output would have been given a professional touch.

Exchange is the process by which individuals buys their needs from others using money earned from their own specialty as a medium of exchange

5 0

2 years ago

Carter Pearson is a partner in Event Promoters. His beginning partnership capital balance for the current year is $55,500, and h

Jlenok [28]

Answer:

b. 9.75%

Explanation:

When a partner invests in a business, he/she expects to get return on his equity in the business. The major reason for this is to compare his/her return in the partnership business with the return he/she could get elsewhere.

The return on partner equity is calculated by dividing his/her net income from the partnership business by his/her average capital for the period.

The formula is given below:

Net income x 100

Average capital

Average capital = Opening capital balance + Closing capital balance

For Carter Pearson, the average capital is = $55,500 + $62,500

= $59,000

The return on equity will be: $5,750 x 100

$59,000

= 9.7457

= 9.75% - approximate to two decimal point.

5 0

2 years ago

Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses

Murljashka [212]

Answer:

$88.75

Explanation:

Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses a credit card to pay. If Customer World earned $90 from a sale and the transaction fee was $1.25, the Customer World should expect $88.75 to be deposited into his business bank account by the credit card company.

I hope the answer is helpful.

Thanks for helping.

3 0

2 years ago

Use the following information to prepare the September cash budget for PTO Manufacturing Co. The following informaition relates

Keith_Richards [23]

Answer and Explanation:

The preparation of the cash budget is shown below:

Beginning Cash Balance $40,000

Budgeted Cash Receipts $225,000

Total Cash Available $265,000

Less

Payment of Raw Mat purchases in Aug ( $80,000 × 35%) $28,000.00

Payment of Raw Mat purchases in Sep ($110,000 × 65%) $71,500

Direct Labor Payment $40,000

Other Cash Expenses $60,000

Income Tax Paid $10,000

Bank Loan Interest Paid $1,000

Total Cash Disbursements $210,500

Closing Cash Balance $54,500

We simply deduct the all cash expenses from the total cash available so that the closing cash balance could come

6 0

2 years ago

The slope of the demand for loanable funds curve represents the Group of answer choices positive relation between the real inter

Andreyy89

Answer:

negative relation between the real interest rate and investment.

Explanation:

Loanable funds can be defined as the total income that are being saved and lend out, other than personal use or as consumption.

Also, it's the total amount investors chooses to borrow to fund their projects.

The slope of the demand for loanable funds curve represents the negative relation between the real interest rate and investment.

This slope of the demand for loanable funds usually slopes downward.

The equilibrium interest rate and quantity of loanable funds falls, when the demand for loanable funds shifts to the left.

7 0

2 years ago