Answer:
Beneficiary recognized gain is $510000.
Explanation:
The amount paid by the decedent for the stock = $280000
The market value of the stock at the time of death = $500000
The selling price or the amount received by the beneficiary by the sell of stock = $510000
Since the recognized gain is calculated by subtracting the amount paid by the person to buy the stock from the amount that he receives from the sale of stock. But in this case, the beneficiary pays zero for the stock but gets all the money after selling.
Beneficiary recognized gain = amount received from the sell – the amount paid by the beneficiary.
= $510000 – 0
= $510000
Answer:
The correct answer is option c.
Explanation:
Adam Smith and other economists advocated that in a competitive industry, the total cost is minimized through the actions of the individuals who are pursuing their self-interest. It is not intended or pre-planned.
Adam Smith believed that individuals are led by an invisible hand or market forces to maximize their own profits and lead to the overall welfare of society.
If consumers and producers are allowed to make their decisions freely, it would lead to production and price determination such that all members of the society are benefited.
Answer:
The full sentence is the following: Bank capital has both benefits and costs for the bank owners. Higher bank capital <em>reduces </em>the likelihood of bankruptcy, but higher bank capital <em>reduces </em>the return on equity for a given return on assets
Answer:
74.46%
Explanation:
Since the project has a chance of doubling investment, it has a chance of making a +100% return. The project also have a chance of losing half of its investment that is -50% return. The expected return E(r) is given by:
E(r) = chance of doubling investment + chance of losing half of its investment
E(r) = 0.44(100%) + 0.56(-50%) = 0.44(1) + 0.56(-0.5) = 0.44 - 0.28 = 0.16
σ² = 0.44(100% - E(r))² + 0.56(-50%-E(r))² = 0.44(1 - 0.16)² + 0.56(-0.5 - 0.16)² = 0.310464 + 0.243936 = 0.5544
σ = √σ² = √0.5544 = 0.7446 = 74.46%
The standard deviation is 74.46%