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Yakvenalex [24]
3 years ago
12

Taussig Technologies is considering two potential projects, X and Y. In assessing the projects' risks, the company estimated the

beta of each project versus both the company's other assets and the stock market, and it also conducted thorough scenario and simulation analyses. This research produced the following data: Expected NPV - Standard deviation (sNPV)Project X : $350,000 - $100,000Project Y : $350,000 - $150,000 Project beta (vs. market) : 1.4 - 0.8 Correlation of the project cash flows with cash flows from currently existing projects. Cash flows are not correlated with the cash flows from existing projects. Cash flows are highly correlated with the cash flows from existing projects.Which of the following statements is CORRECT?a. Project X has more stand-alone risk than Project Y. b. Project X has more corporate (or within-firm) risk than Project Y. c. Project X has more market risk than Project Y. d. Project X has the same level of corporate risk as Project Y. e. Project X has less market risk than Project Y.
Business
1 answer:
Mrrafil [7]3 years ago
3 0

Answer:

C) Project X has more market risk than Project Y.

Explanation:

Market risk refers to risks associated with the performance of the whole market, e.g. changes in interest rates, changes in commodity prices. Taussig Technologies cannot eliminate market risks since they depend on external factors.  

Project X has a higher beta (vs. market) than project Y, therefore it has more market risk.

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<h3>What is private label and private label retail?</h3>
  • A contract or third-party manufacturer creates a private label product, which is then marketed and sold by a retailer.
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8 0
2 years ago
EstWhich titles. Fits this vin diagram best
jarptica [38.1K]

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Title 1 is "careers" and title 2 is "jobs"

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4 0
3 years ago
A consumer downloads 4 movies and 3 apps per week. Suppose the price is $4 per movie and $4 per app, and the marginal utility th
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Marginal utility will be calculated for movies by: 14/(4*4) which would mean 0.875 utils per dollar per movie. Whereas, for apps, it would be: 8/(3*4) which would mean utils per dollar per app to be 0.667. Hence, movies tend to carry higher utility.

3 0
3 years ago
Ken consumes two goods, Sprite and potato chips. Sprite costs $1 per can, and he consumes it to the point where the marginal uti
borishaifa [10]

Answer:

The correct option is c. $8.

Explanation:

Ken will maximize utility where the following equation holds:

MU of Sprite / Price of Sprite = MU of potato chips / Price of potato chips ................. (1)

Where;

MU of Sprite = Marginal utility of Sprite = 3

Price of Sprite = $1 per can

From the table in the question, equation (1) holds at the point where Marginal utility of potato chips is 6 since the Potato chips cost $2 per bag.

Substituting the values into equation (1), we have:

MU of Sprite / Price of Sprite = MU of potato chips / Price of potato chips => 3 / 1 = 6 / 2 = 3

Since when the marginal utility of potato chips that maximizes utility is 6, Ken consumes 4 Bags of Potato chips monthly and pays $2 per bag at this point, the amount he spends on potato chips each month can be calculated as follows:

Amount spent on potato monthly = Number of bags of Potato chips consumed monthly * Cost of potato chips per bag = 4 * $2 = $8

Therefore, the correct option is c. $8.

3 0
3 years ago
The current net profit of sigma inc. is $8 million, the market price of the stock is $65, and sales is $50 million. the net prof
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The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue.

It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form.

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Net profit margin is calculated by dividing the net profits by net sales, or by dividing the net income by revenue realized over a given time period.

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For example, in the retail industry, a good net profit ratio might be between 0.5% and 3.5%.

Other industries might consider 0.5 and 3.5 to be extremely low, but this is common for retailers. In general, businesses should aim for profit ratios between 10% and 20% while paying attention to their industry's average.

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