Answer:
<em>Economic growth refers to a steady increase in the production of goods and services in an economic system.</em><em> </em><em><u>True</u></em>
Based on the scenario analysis on stocks and bonds, we know the following:
- Treasury bonds will provide a higher return in a recession than in a boom.
- The expected return of Bonds is 9.8% and that of stocks is 11.6%.
- The standard deviation of Bonds is 9.24% and that of stock is 11.76%.
<h3>What does the scenario analysis on Bonds and Stocks show?</h3>
In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.
The expected return on bonds will be:
= ∑(Probability of Scenario x Returns in scenario)
= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)
= 9.8%
The expected return on stocks will be:
= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)
= 11.6%
Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.
Find out more on stock expected returns at brainly.com/question/18724022.
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Food business. It is the best example or entrepreneurial activity that anyone is capable of doing which is related to cooking. If you like baking, you can put up a bake shop, or cookie shop.
Answer:
The profit margin.
Explanation:
Resellers buy products at a certain price to sell at a higher price in another market. Thus, the main factor that the dealer considers when making his purchase decision is the profit margin he will get with that product, ie the difference between the price he buys the product and the resale price.
Answer:
The answer is: C) Reduce the present value and the price of the corporation´s stock.
Explanation:
The price of any company is determined mostly on its estimated future earnings calculated through a cash flow analysis. In this case consumers and investors were expecting the smartphone to be a hit. So they estimated the future sales in XYZ levels, with profits according to that XYZ sales. Thus the stock price was probably high due to the future sales numbers and the projected earnings for the corporation.
When the new smartphone disappoints, sales will then be expected to be lower than XYZ, so the estimated future earnings will also be lower. Therefore the stock price will fall and adjust to the new lower sales and earnings levels expected for the corporation.