The answer to this question is D
Answer:
Option (B) is correct.
Explanation:
The quantity theory of money can be expressed in the form of an equation that is
M × V= P × GDP
where,
M = Money supply
V = Velocity of money
P = Price level
GDP = Gross domestic product
P × GDP is the nominal GDP, it is the amount of required for purchasing the total amount of output. All the transactions are depends upon the income level of the consumers at the full-employment level. So, if there is an increase in the money supply, this will results in higher prices which means that an increase in the money supply over the real gross domestic product would cause the inflation.
Increase in the money supply will increase the nominal GDP but real GDP remains the same. But if the growth rate of money supply is equal to the growth rate of real GDP then there will be no inflation and Real GDP remains constant at the full-employment level, hence, its level of volume doesn't increase if the there is an increase in the money supply.
Therefore, increased growth rate of money supply over the real GDP causes inflation.
Answer:
Only if the stock price is greater than 
Explanation:
-Ignoring time value of money, the stock's holder will only make a profit if the stock price at time of maturity is greater than .
-Price must be greater than total cost ($120+$6) of buying the option.
-The option will not be exercised if the stock price is between $120 and $126. If exercised at these prices, the holder will make a loss.
A unique approach known as the capital asset pricing model or CAPM is employed in finance to determine the correlation between the risk of investing in a particular share and expected dividends. The expected returns for security are calculated using the CAPM model.
<h3>CAPM model</h3>
Required rate of return = Risk-free return + Beta (Market return - Risk-free return)
Required rate of return = 2.2% + 1.12 (11% - 2.2%)
Required rate of return = 12.05%
Hence, the correct option is D (12.05%).
The risk-free rate is the rate of return offered by an investment that carries zero risk. Every investment asset carries some level of risk, however small, so the risk-free rate is.
To learn more about CAPM models visit the link
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Answer:
Production= 1,940 units
Explanation:
Giving the following information:
Sales (in units):
January= 1,700
February= 1,900
March= 2,100
Ending inventory for each month should be 20% of next month.
To calculate production, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 1,900 + (2,100*0.2) - (1,900*0.2)
Production= 1,940 units
