The relationship between risk and expected return serves to allocate capital in a market. Investors want to maximize return for a given level of risk, so capital flows to its most efficient use.
There is a positive correlation between the level of risk taken and the level of return expected. The greater the risk, the greater the expected return and the greater the likelihood of suffering a large loss.
The relationship between risk and expected return is called the risk-return relationship. This is a positive relationship because the more risk you take, the higher the required return that most people demand. Risk aversion describes a positive risk-reward ratio.
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Answer:
total expected bonus = $1262800
Explanation:
given data
bonus = $23,000
Probability = 12 percent
bonus = $10,000
Probability = 25 percent
bonus = $6,000
Probability = 8 percent
total sales = 220
solution
first we get probability for bonus amount = $0
probability = 1 - ( 12% + 25% + 8 % )
probability = 0.55
so here Expected bonus per employee company will pay is
Expected bonus = $23000 × (0.12) + $10000 × (0.25) + $6000 × (0.08) + $0 (0.55)
Expected bonus = $5740
so total expected bonus is
total expected bonus = $5740 × 220
total expected bonus = $1262800
Answer:
The statements that are correct about money are
(1) With the use of money, double coincidence of wants is not necessary in an exchange.
(2) With the use of money, the cost of looking for trading partners can be lowered.
Option: (A)
Explanation:
The concept of using money having a predefined value emerged from the idea of how convenient it would be to have a common commodity of exchange that could be used in exchange for anything and everything offered for sale. After the barter system eventually came to an end, the process of determining monetary values of commodities of day to day use began and inveterated gradually. As the prevalence of the use of common money grew, the necessity of double coincidence of wants ended soon. People who wanted to exchange wheat for maize no longer had to wait to come across someone who wanted to exchange maize for wheat.
With the introduction of money and an increase in its use, the time and efforts required to find a partner to trade with decreased dramatically. This made transactions more convenient and affordable and more people began to involve themselves in trading activities. The use of money not only dispensed ease of doing business but also helped in establishing faith and reliability among trading partners.
Answer: Helena will most likely end up spending some more money on everything else after receiving the voucher.
Explanation:
The budget constraint is used to shows the combinations of two goods which can be afforded by a consumer. A normal good is a good or product that when the income of the person rises,the demand for the product will also increase.
Based on the above information on the question, the correct answer is "Helena will most likely end up spending some more money on everything else after receiving the voucher".
This is because the voucher she was given can be spent only on educational expenses and her budget constraints comprises of educational expenses and everything else which is made up of normal goods. This means she'll still needs to get the normal goods later.
Answer:
Ashley used 87 pounds of type B coffee
Explanation:
4.3a + 5.9b = 749.80
a + b = 142
b = 142-a
4.3a + 5.9(142-a) = 749.80
4,3a + 5.9(142-a) = 749.80
4.3a + 837.8 - 5.9a = 749.80
4.3a - 5.9a = 749.80 - 837.80
-1.6a= -88
a= -88 / 1.6 = 55
55 + b = 142
b= 142- 55 = 87
That is the way we get how many pounds of type B coffee Ashley used
