A, the money supply (how much currency in a country's economy at a time) is going to decrease by $4500! A required reserve ratio is basically a sort of rule that the government sets that says how much of a person's deposits must be set towards reserves.
Answer:
B) the same level of output per person as before.
Explanation:
In the Solow growth model, the economy reaches a steady state level of capital regardless of the starting level of capital. This steady state occurs when capital per worker is constant. Therefore after the war, the level of output should return to its normal level since the savings rate is constant and hasn't changed. This model assumes that a constant fraction of capital will always wear out, increasing the capital-labor ratio, therefore the population must grow or new technologies must be introduced to reach the steady state.
Answer:
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
Explanation:
In order to calculate the average beta of the new stocks to achieve the target required rate of return we would have to calculate the following:
average beta of the new stocks = (Required Beta-(portfolio /total fund) *old beta)/(additional portfolio/total fund)
To calculate the Required Beta we would have to use the formula of Required rate of return as follows:
Required rate of return=Risk free return + (market risk premium)*beta
0.13=0.0425+(0.06*Required Beta)
Required Beta = (0.13-0.0425)/0.06
Required Beta = 1.45
Therefore, average beta of the new stocks =(1.45-($40/$100) *1)/($60/$100)
average beta of the new stocks =1.05/0.6
average beta of the new stocks =1.75
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
Answer:
By how they work and how they are in their field
Answer:
$,9789.97
Explanation:
Calculation to Find the payment (X) that he will receive at year 10
Using this formula
Let plug in the formula
Present Value = CF2/(1+r)^2 + CF6/(1+r)^6 + CF10/(1+r)^10 + CF4/(1+r)^4
Let plug in the formula
17,000 = 8,500/1.06^2 + 9,000/1.06^6 + X/1.06^10 - 3,000/1.06^4
Payment (X) = (17,000 - 13,909.61 + 2,376.28)*1.06^10
Payment (X) == $,9789.97
Therefore the payment (X) that he will receive at year 10 will be $,9789.97
