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1 year ago

One way that the world bank might experience an adverse selection in its own lending is if __________.

1 answer:

6 0

Adverse selection describes situations when high-risk persons are more likely to receive insurance or when one bargaining side has important knowledge that the other does not. Our goal is to influence decision-makers, both inside and outside of government, to consider the future and adopt long-term plans.

When vendors and/or purchasers have different knowledge about a certain component of a product's quality, this is referred to as adverse selection. Thus, those who work in hazardous environments or lead high-risk lives are more likely to buy life or disability insurance, knowing that they will likely be able to use it.

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Answer:

<u>December 31, 2018</u>

Debit : Dividend $40,000

Credit : Shareholders for dividends $40,000

Explanation:

When dividends are declared, we Debit an Equity Element - Dividend and Credit the Liability - Shareholders for dividends.

Calculation of this dividend is made on the stockholders in existence at the on a stated date (January 15 in this case) and at par value ($2) as follows :

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An employee at falcon security is studying an analysis of data regarding the occurrence of problems and failures with its drones

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An employee at Falcon Security is studying an analyst of data regarding the occurrence of problems and failures with its drones camera. Based on the analysis, the employee may schedule maintenance on the equipment Falcon Security is using the analysis to decision making.

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3 years ago

you have $6000 to invest in two stock funds. The first fund pays 5% annual interest and the second account pays 9% annual intere

stira [4]

Answer:

Amount of money invested is $2,000 and $4,000

Explanation:

In this question, we are asked to calculate how much was invested in two different accounts given the amount of money invested in both accounts.

Let the amount of money invested in both accounts be a and b respectively.

Mathematically;

A + B = 6000 ......I

Now we use the formula for simple interest to check the amount that is supposed to be made on Both accounts if he end of a year.

Formula for simple interest is I = PRT/100

Let’s apply this to what is on ground:

5*1* a/100 = 5a/100

Second is

9*b*1/100 = 9b/100

That is 5a + 9b = 38,000. ........ii

Solving Both simultaneously as follows:

Let A = 6000-b from 1

Substitute this into 2

5(6000-b) + 9b = 38,000

30,000 -5b + 9b = 38,000

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3 years ago

The return on the market portfolio is currently 12%. Mobile Phone Corporation stockholders require a rate of return of 30% and

Triss [41]

Answer:

The risk free will be 3.82%

Explanation:

We post the CAPM formula and how given data

$Ke= r_f + \beta (r_m-r_f)$

risk free ?

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premium market market rate - risk free ?

beta(non diversifiable risk) 3.2

Ke = 0.3

Now we post the know values and solve for risk free

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3 years ago