Answer:
Rate of return is 2.52%
Explanation:
Investment in 1925 = $10,000
Portfolio value in 2000 = $64,402.23
Number of years = 2000-1925 = 75 years
Rate of return = ?
Using following formula to calculate rate of return.
A = P x ( 1 + r )^n
64,402.23 = 10,000 x ( 1 + r )^75
64,402.23 / 10,000 = ( 1 + r )^75
6.440223 = ( 1 + r )^75
1.02515 = 1 + r
r = 1.02515 - 1
r = 0.02515
r = 2.52%
Present Value involves discounting, and future value involves compounding.
The find present value of a dollar a year from now, we must discount by the discount rate, since a dollar a year from now is not worth as much as a dollar today.
To find the future value (in a year) of a dollar we receive today, we increase the dollar by the discount rate, since our dollar today is worth more than a dollar a year from now.
FALSE
Correct Statement is Equilibrium is when the quantity demanded is equal to the quantity supplied
Answer:
7.5%
Explanation:
Since the beta of this portfolio is 1, it means that it is perfectly synced with the market rate of return. We are told that the market rate of return is 7.5%, so that means that the expected rate of return of the portfolio should also be equal to 7.5%.
Beta measures the volatility of the portfolio or the stocks in relation to the market. If the stock is less volatile, the beta will be less than 1, if the stock is more volatile, the beta will be more than 1.
Brewpub will hire another brew master only "if a pint of brew sells for $6 or more".
The market wage is likewise the wage that relates with the supply and demand in free market part of wages. On the off chance that a laborer is of high worth to businesses, and there is a lack of that sort of specialist, wages will be offered up, as various bosses contend to employ the laborer.