Answer:
Arithmetic = 3%
Geometric = 2.37%
Explanation:
The arithmetic average of 'n' returns is given by:
For five returns of 5% ,21%, -12%, 7%, and -6%:
The geometric average of 'n' returns is given by:
![G=\sqrt[n]{(1+r_1)*(1+r_2)*...*(1+r_n)}-1](https://tex.z-dn.net/?f=G%3D%5Csqrt%5Bn%5D%7B%281%2Br_1%29%2A%281%2Br_2%29%2A...%2A%281%2Br_n%29%7D-1)
For five returns of 5% ,21%, -12%, 7%, and -6%:
![G=\sqrt[5]{(1+0.05)*(1+0.21)*(1-0.12)*(1+0.07)*(1-0.06)}-1\\G=0.0237=2.37\%](https://tex.z-dn.net/?f=G%3D%5Csqrt%5B5%5D%7B%281%2B0.05%29%2A%281%2B0.21%29%2A%281-0.12%29%2A%281%2B0.07%29%2A%281-0.06%29%7D-1%5C%5CG%3D0.0237%3D2.37%5C%25)
Answer:
Lack of competition
Explanation:
A centrally planned economy lack competitiveness. The government decides what to produce, the price, and the distribution channel. Because of these restrictions, there is no motivation for profits. Without competition, a centrally planned economy will have the following features.
- There be a lot of inefficiency and wastefulness.
- Consumers will not have a variety of goods and services to choose from in the markets.
- Businesses will make low profits.
Answer:
C. Finished Goods Inventory has decreased.
Explanation:
Cost of goods manufactured (COGM) increases when finished goods inventory is <em>produced</em>, while cost of goods sold (COGS) increases when finished goods inventory is <em>sold</em>. If COGS has been increasing faster than COGM has been increasing, the company has been selling more goods than it has been producing. Therefore, it must have sold goods from its surplus of finished goods inventory. Thus, finished goods inventory has decreased.
Answer:
For Dan, the demand is price inelastic
Explanation:
One of the factors tat affect the quantity demand for a product is the price of the product. According to the law of demand, at lower price more quantity of a product would be purchased than at a higer price, all other this being being equal.
Price elasticity of Demand (PED)
The extent to which a change in price will cause a change in the quantity demand for a product is called the price elasticity of demand. It measures the degree of responsiveness of quantity demand to a change in price.
It is calculated as
PED =% change in quantity demand / % change in price.
For Dan Newspaper , the price elasticity of demand
= 4%/8%
= 0.5
If the PED is greater than 1, the demand is price elastic
If the PED is less than 1 , demand is price inelastic
For Dan, the demand is price inelastic
The right answer for the question that is being asked and shown above is that: "d. Federal Reserve Note." a government bond that is repaid within 3 months to a year is called the d. Federal Reserve Note.
