Answer:
The investor will prefer asset U. So the correct answer is option D
Explanation:
To choose between these stocks, we will calculate the coefficient of variation (CV) which is used to assess the risk per unit of expected return. As most people are risk averse, we assume that the investor is risk averse. We will calculate the CV for all three investments and the stock having lowest CV will be selected.
<u>Coefficient of Variation (CV)</u>
Coefficient of Variation = standard deviation / expected return
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Asset Q = 5.5% / 6.5% = 0.846
Asset U = 5.5% / 8.8% = 0.625
Asset B = 6.5% / 8.8% = 0.738
Thus, asset U has the lowest CV and the investor =, being a risk averse, will prefer asset U.
Answer:
$130,500
Explanation:
Given that,
service revenue = $720,000
Total cost (fixed and variable) per client = $2,500
Served = 115 clients during the year
operating expenses = $302,000
Gross profit:
= Service revenue - Total cost
= $720,000 - ($2,500 × 115)
= $720,000 - $287,500
= $432,500
Net income = Gross profit - operating expenses
= $432,500 - $302,000
= $130,500
I I’m not sure but I think B
Answer:
The correct answer is option b.
Explanation:
Aggregate demand represents the overall demand of goods and services in the economy in a year. It is comprised of consumption spending, investment, government spending, and net exports.
An increase in the government spending will increase the aggregate demand, so the aggregate demand curve will shift to the left.
A decrease in the stock prices, on the other hand, will cause the aggregate demand to fall, shifting the curve to the left. This happens because decrease in stock prices causes the wealth of the investors to decline. The consumer spending decreases and so does aggregate demand.
Answer:
Direct
Inverse
Explanation:
The options to this question wasn't provided. The full question can be found here: https://www.chegg.com/homework-help/relationship-quantity-supplied-price-relationship-quantity-d-chapter-3-problem-7mcq-solution-9780077416355-exc
The relationship between quantity supplied and price is direct because the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied. This results in an upward sloping supply curve.
the relationship between quantity demanded and price is inverse because the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. This explains why the demand curve is downward sloping.
I hope my answer helps you
