Nominal GDP is a good snapshot of the current value of production in an economy but it cannot be used to make comparisons over time because prices change.
Nominal GDP is an indicator used to understand a country's economy. It measures the current value of production of a country. But it cannot be considered as a good measure. One important drawback of Nominal GDP is that it cannot be used to make comparisons of production prices over time because it doesn't take inflation into account.
Nominal GDP works only with current prices and the price changes will not be seen when calculated through years.
So Real GDP is considered for comparisons of product prices over time.
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The question is incomplete. Here is the complete question:
The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the stock’s expected return and standard deviation of returns? E(R) = 8.5% ; σ = 22.70%; mean = $7.50; standard deviation = $2.50
State Prob E(R)
Boom 10% 40%
Normal 60% 20%
Recession
30% - 25%
Answer:
The expected return of the stock E(R) is 8.5%.
The standard deviation of the returns is 22.7%
Explanation:
<u>Expected return</u>
The expected return of the stock can be calculated by multiplying the stock's expected return E(R) in each state of economy by the probability of that state.
The expected return E(R) = (0.4 * 0.1) + (0.2 * 0.6) + (-0.25 * 0.3)
The expected return E(R) = 0.04 + 0.12 -0.075 = 0.085 or 8.5%
<u>Standard Deviation of returns</u>
The standard deviation is a measure of total risk. It measures the volatility of the stock's expected return. The standard deviation (SD) of a stock's return can be calculated by using the following formula:
SD = √(rA - E(R))² * (pA) + (rB - E(R))² * (pB) + ... + (rN - E(R))² * (pN)
Where,
- rA, rB to rN is the return under event A, B to N.
- pA, pB to pN is the probability of these events to occur
- E(R) is the expected return of the stock
Here, the events are the state of economy.
So, SD = √(0.4 - 0.085)² * (0.1) + (0.2 - 0.085)² * (0.6) + (-0.25 - 0.085)² * (0.3)
SD = 0.22699 or 22.699% rounded off to 22.70%
Answer:
B. Invite further correspondence.
C. Close with good wishes.
D. Buffer the opening.
Explanation:
These are all strategies that can be used to soften the bad news of rejection for a candidate that is not going to be hired. When you buffer the opening of your correspondence, you contribute to making the reader feel less negative about the news. Moreover, by inviting further correspondence, you demonstrate that the rejection is nothing personal and should not be taken as such. Finally, by closing with good wishes, you end on a positive note that is reassuring to the candidate.
Answer:
An organisation statement on how it will achieve its purpose in the environment in which it conducts business.
Explanation:
A mission statement can be defined as a statement which explains the reasons for an organisation existence, it also explains what a business aims to achieve at a long-run.
All organisations have their different mission statements which clearly defines the purpose of the business. It is used to create a form of direction and also motivation to the various employees of the organisation.
Mission statements serves as a guide that enables the organisation to achieve their objectives and goals, It also helps in the planning of future aspirations.
Answer: will increase but this will not affect living standards
Explanation:
GDP is sometimes called an incomplete measure because there are certain measures that it does not include such as the black market.
If firms in the black market shift to the formal sector, they will now be included in GDP which means that GDP will increase.
The living standards of people in the country will probably not change however because the firms involved were simply shifting sectors and are not said to be more or less prosperous as a result. Assuming they remained the same, nothing changes for living standards.
