1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
puteri [66]
3 years ago
7

Stock A has a beta of 1.2, and stock B has a beta of 1. The returns of stock A are ______ sensitive to changes in the market tha

n are the returns of stock B. A. 20% more B. slightly more C. 20% less D. slightly less
Business
1 answer:
stellarik [79]3 years ago
3 0

Answer:

Option A, 20% more, is the right answer.

Explanation:

Given the beta value of stock A =  1.2

The beta value of stock B = 1

The beta value of stock A is greater than the stock B. Here, we can see that the beta of stock A  is large by 20% as compared to the beta of stock B.

It can be calculated as = (Beta of stock A – Beta of stock B) / Beta of stock B

= (1.2 – 1) / 1

= 0.2 or  20%

Therefore, the return will also be more than 20%.

Thus, option A. 20% more is correct.

You might be interested in
What do alphas in the world state use for personal transportation?
Afina-wow [57]
Alpha transport is a concept that stands for <span>the separation of ‘active’ risk from the underlying market risk – typically expressed as a benchmark. </span>
3 0
3 years ago
Read 2 more answers
Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new j
SCORPION-xisa [38]

Answer:

The correct answer is C. If the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more quickly. The policy will cause the natural rate of unemployment to fall, which will shift the long-run aggregate supply curve to the right .

Explanation:

Unemployment occurs when there is a greater supply of labor than what is demanded. This means that there are people who seek employment at the regular wage rates, but who are unable to get employment in the open labor market. Unemployment also means that people who actually want to work (and who are unemployed) cannot work with what they are qualified for.

Unemployment is a social problem, and low unemployment and high employment are important in order to develop and maintain a welfare society. For each individual, work is the most important insurance for their own welfare and social inclusion.

If the aforementioned law were approved, and the unemployed began to look for work imminently (even leaving aside some pretensions), many of them would get a job in a shorter time than if this law were not approved, which would decrease the country's unemployment rate.

6 0
3 years ago
Which of these statements is TRUE of complementary products?
Schach [20]

Answer:

D) An increase in the demand for one will usually result in an increased demand for the other.

Explanation:

Complementary goods are products used together.  They are sold separately but add value to one another. Complementary goods will usually be a set of two or more goods that gives the consumer a higher utility when used together. Examples include Petrol and car, Tennis balls and tennis rackets, and DVD player and DVD disks to play in it.

Complementary goods experience joint demand. Should the demand for one complimentary goods increase, demand for the other product or service increases automatically.

7 0
3 years ago
A person who can afford a monthly payment of and signs a loan
Bond [772]

Answer:

4000

Explanation:

5 0
3 years ago
Dan sells newspapers. Dan says that a 8 percent increase in the price of a newspaper will decrease the quantity of newspapers de
ivann1987 [24]

Answer:

For Dan, the demand is price inelastic

Explanation:

One of the factors tat affect the quantity demand for a product is the price of the product. According to the law of demand, at lower price more quantity of a product would be purchased than at a higer price, all other this being being equal.

Price elasticity of Demand (PED)

The extent to which a change in price will cause a change in the quantity demand for a product is called the price elasticity of demand. It measures the degree of responsiveness of quantity demand to a change in price.

It is calculated as

PED =% change in quantity demand / % change in price.

For Dan Newspaper , the price elasticity of demand

             = 4%/8%

            = 0.5

If the PED is greater than 1, the demand is price elastic

If the PED is less than 1 , demand is price inelastic

For Dan, the demand is price inelastic

4 0
3 years ago
Other questions:
  • Suppose a company has $200 in fixed costs and $40 per unit in variable costs. The company sold 10 items for a total of $1,000. H
    10·1 answer
  • Ford’s erp system follows the american accounting standards in its u.s. subsidiaries, and follows the mexican accounting standar
    13·1 answer
  • Corporation had 200,000 shares of common stock outstanding during the current year. There were also fully vested options for 10,
    6·1 answer
  • An MRI technician is a diagnostic professional. true or false
    9·2 answers
  • Magnira Corp. is an apparel company. After a slow start, it saw a steep rise in the number of its customers and a remarkable inc
    11·1 answer
  • Zebra Company sells a segment of its operations at a loss. Zebra has not previously experienced such an event and does not expec
    9·2 answers
  • Complete the following sentence. Remember to spell correctly.
    10·2 answers
  • List three ways an employee can think like and entrepreneur
    12·2 answers
  • 2. Ellen went to play golf last week at her favorite course. As she was approaching the first hole, she noticed (1 point)
    5·1 answer
  • How does multi party system works
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!