Answer:
c. The stock's beta will be greater than one.
Explanation:
In order to understand the right answer here, we need to understand what Beta is and what does it represent.
Well, Beta tells about the responsiveness of any stock in comparison with the stock market index. For example, if the index move 100 points positive and the stock price moves $120 positive, this means that the stock is very responsive and has a high beta of more than 1. For stocks that are less response to stock market, their beta is less than 1, while for stocks who move the exact same direction as per the stock market, their beta is said to be equal to 1.
Here, in this question, since the stock return is more variable than the market return, it clearly tells that the Beta of that stock will be greater than one.
Hope this helps, Good Luck.
Development is the process of an economy’s increasing industrialization, standard of living, and economic wealth.
When there is a development in economics, they focus on improving the fiscal economic and social conditions in developing countries. Development does not happen over night or at a fast pace but eventually the areas they want to have developed become more economically sound to keep up with the economy's needs. There are 4 stages of economic development, they are expansion, peak, contraction and trough.
The cash outflow at the start of a project is termed the initial capital investment, and includes any investment in fixed assets required by the project.
A project cash flow includes revenue and costs. Project cash flow refers to how the cash flows in and out of an organization in regard to a specific existing or potential project.
Initial investment is the amount required to start a business or a project. The cash flow in the initial investment stage is estimated mainly at planning stages of a business or a project. Fixed capital, salvage value, working capital, tax rate, and book value are considered, while calculating the initial cash flows.
Hence, the cash outflow at the start of a project includes any investment in fixed assets required by the project.
To learn more about initial capital investment here:
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Answer: Total assets are $172000
Explanation:
Extracts from Statement of financial position:
Non current assets: -
current assets:
inventory $42000
account receivable. $55000
cash. $75000
Total assets. $172000
