Answer:
market premium = 0,0781 = 7.81%
Explanation:
We have to calculate the market return and then calcualte the premium as the difference between the expected return on the market and the risk-free rate:
We multiply each outcome by the stock weight. and then for the probability of occurence of that state of economy
Calculations for boom:
Change of boom x (weighted outcome A + weighted outcome B + weighted outcome C)
0.25 x (0.45 x 0.15 + 0.45 0.27 + 0.1 x 0.05) = 0.05
![\left[\begin{array}{cccccc}Stock&&B&A&C&Totals\\Weights&&0,45&0,45&0,1&&Boom&0,25&0,15&0,27&0,11&0,05&Normal&0,65&0,11&0,14&0,09&0,078975&bust&0,1&-0,04&-0,19&0,05&-0,00985&&&&&return&0,119125&\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccccc%7DStock%26%26B%26A%26C%26Totals%5C%5CWeights%26%260%2C45%260%2C45%260%2C1%26%26Boom%260%2C25%260%2C15%260%2C27%260%2C11%260%2C05%26Normal%260%2C65%260%2C11%260%2C14%260%2C09%260%2C078975%26bust%260%2C1%26-0%2C04%26-0%2C19%260%2C05%26-0%2C00985%26%26%26%26%26return%260%2C119125%26%5Cend%7Barray%7D%5Cright%5D)
market expected return 0,1191
Market premium: 0,1191 - 0,041 = 0,0781
Answer:
The correct option is D.
Explanation:
In a perfectly competitive market, there are many sellers selling the same product and in this market, firms have easy entry and exit, products are identical in nature from one seller to another and also the sellers are price taker.
So, in this case, ABC firm compete in this market for milk but later on they changed their production to produce organic milk and this change would be described by the effect that ABC firm is differentiating its product from market and they will have a chance to charge high price than earlier.
Therefore, the correct option is D.
<span> i would say this scheme would yield the most significant results:stratify adult residents into three strata: college students, nonstudents who work full time, nonstudents who do not work full time. This way the results could be related to a particular demographic group so would say something about each group rather than just a random sample. </span>
Answer:
what this?
Explanation:
thanks for the points have great day im so sorry if this was suppose to be an educational question
This should NOT be considered when setting a current budget
Future income
Explanation:
Future income can be anticipated but never factored in.
This is because the economy is not only controlled by economic policy or statistics that anticipate growth but outside influences too.
For example, despite the productive growth in the recent time there will be decrease in incomes throughout the world this year.
This is because of the recent crisis that was not foreseen at all.
Thus policy making must not see the future as anything granted and must only set up goals for the present and only anticipate what would probably come in the future.
