Answer:
B. S and I drop by $0.60 trillion.
Explanation:
We know that
Y = C + I + G
$12 trillion = $8 trillion + I + $2 trillion
$12 trillion = $10 trillion + I
So, I = $12 trillion - $10 trillion
= $2 trillion
As the government purchases increase from $2 trillion to $2.60 trillion
and the rest of the things remain the same.
So New I = $12 trillion - $8 trillion - $2.60 trillion
= $1.4 trillion
So, the difference would be equals to
= $2 trillion - $1.4 trillion
= $0.6 trillion
The $0.6 trillion reflect fall in the investment
And the saving and the investment are equal to each other
Hence, the B option is the right answer
Answer:
a. Expected Return = 16.20 %
Standard Deviation = 35.70%
b. Stock A = 22.10%
Stock B = 29.75%
Stock C = 33.15%
T-bills = 15%
Explanation:
a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.
Thus, the expected return of the client's portfolio is,
- w1 * r1 + w2 * r2
- 85% * 18% + 15% * 6% = 16.20%
The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.
b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,
- Stock A = 85% * 26% = 22.10%
- Stock B = 85% * 35% = 29.75%
- Stock C = 85% * 39% = 33.15%
- T-bills = 15%
- These all add up to make 100%
Perhaps the most important reason that u.s. companies have moved industrial production abroad is that the labor of the other nation is paid the low wages than the labor wages in US.
Job outsourcing occurs when U.S. companies hire the foreign workers instead of Americans.
Job outsourcing can help American companies to compete in the economy by keeping prices low, but simultaneously it has a negative effect on
America has lost local jobs to different countries labor such as China, Mexico, India, and other countries with lower wage standards.
Companies outsource domestically as well , they do not rely on the other countries completely U.S. employment but they have been increasing their reliance on freelancers or temp workers, as well as the part-timers.
To know more about job outsourcing here:
brainly.com/question/4129759
#SPJ4
Answer:
$23,773.65
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested
NPV can be calculated using a financial calculator :
cash flow in year 0 = $-80,000.
Cash flow in year 1 and 2 = $35,000.
Cash flow in year 3 and 4 = $30,000.
I = 10%
NPV = $23,773.65
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
In the context of business management, the purpose of budgeting includes the following three aspects:
•A forecast of income and expenditure (and thereby profitability)
•A tool for decision making
•A means to monitor business performance
