JEBBERZ that link isn't even clickable
Answer: A- Workers and Firms May not have rational expectations.
Answer
Hi,
This type of communication could be interpersonal communication or formal communication
Explanation
Interpersonal communication occurs in company when it is done between two or more individuals at a workplace. For this case, the communication was between the vice president of research and development and the vice president of marketing. This could also be a formal communication where a hierarchy at the workplace is followed because the two vice presidents from different departments first talked before involving junior staff members. In this case, the two vice presidents are communicating formally with each other to get work done.
Welcome!
Answer:
The correct answer is: The expected rate of return for the stock would be around 7%.
Explanation:
The Beta coefficient is a numeral measure that portraits the volatility of a stock compared to the overall market performance. If a stock's beta is closed to the numerical value one (1) it implies it is highly correlated to the price movement of the overall market.
In that case, if a stock's beta is 0.8 it implies it follows the market price movements. If the stock expected rate return is 12% but the market return turns out to be 5% points below expectations, it means the stock's return would end up being around 7%.
