The real-income effect of a price change is most significant when

12. You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a T-bill with

Semenov [28]

Answer:

C. Borrowing $43 at the risk-free rate and investing the total amount ($143) in the risky asset.

Explanation:

Outcome Return For $100 = (115 - 100)/100 = 15%;

0.15 = w1(0.12) + (1 - w1)(0.05)

0.15 = 0.12w1 + 0.05 - 0.05w1

0.10 = 0.07w1

w1 = 1.43($100)

w1 = $143;

(1 - w1)$100 = $100 - $143

(1 - w1)$100 = -$43

7 0

2 years ago

free pdf community revival in the wake of disaster: lessons in local entrepreneurship (perspectives from social economics)

Bogdan [553]

According to Community Revival in the Wake of Disaster, entrepreneurs, broadly considered as those who spot and seize opportunities to foster social change, fulfill this crucial function.

It can be challenging to recover after natural disasters like tsunamis, hurricanes, earthquakes, and floods. Residents of communities must be able to both obtain the resources they need for reconstruction and get around the issue of collective action that plagues post-disaster relief efforts.

The community revival in the wake of disaster illustrate how entrepreneurs support community recovery by providing necessary goods and services, restoring and replacing disrupted social networks, and signaling that community rebound is likely and, in fact, underway. The recovery efforts following Hurricanes Katrina and Sandy in New Orleans, Louisiana, and Rockaway, New York, are used as examples. They contend that encouraging businesses to take action after natural disasters is crucial for establishing recovery and resilient communities.

To learn more about natural disaster click here:

brainly.com/question/932110

#SPJ4

3 0

1 year ago

Swifty Company incurred the following costs during the year: direct materials $24.40 per unit; direct labor $13.10 per unit; var

DerKrebs [107]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Swifty Company incurred the following costs during the year: Direct materials $24.40 per unit

Direct labor $13.10 per unit

Variable manufacturing overhead $16.00 per unit

Variable selling and administrative costs $11.00 per unit

Fixed manufacturing overhead $132,000

Fixed selling and administrative costs $12,000.

Swifty produced 6,600 units and sold 6000 units.

A) Absorption costing= direct material + direct labor + variable overhead + fixed overhead

Absorption costing= 24.4 + 13.1 + 16 + (132,000/6,600)= $73.5

B) Variable costing= direct material + direct labor + variable overhead + Variable selling and administrative costs

Variable costing= 24.4 + 13.1 + 16 + 11= $64.5

4 0

3 years ago

although stocks can generate greater revenue, they are also more risky than many forms of investments. true or false

34kurt

The correct answer for the question that is being presented above is this one: "TRUE." Although stocks can generate greater revenue, they are also more risky than many forms of investment. Dividends are not guaranteed; each company's board of directors has to vote to issue dividends, and they may not always do so.

4 0

3 years ago

Read 2 more answers

Matthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly influence the investee’s operat

LenKa [72]

Answer:

Matthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly influence the investee's operations and decision making. On January 1, 2015, the balance in the Investment in Lindman account is $337,000. Amortization associated with this acquisition is $10,000 per year.

Explanation:

7 0

3 years ago

The​ real-income effect of a price change is most significant when

The real-income effect of a price change is most significant when