Answer:
A
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
risk free + (beta x market premium)
6 + (0.9 X 7) = 12.3%
Answer:
PPF will rotate rightward by technological breakthrough in making cloth only
Explanation:
PPF is the graphical representation of two goods, that an economy can produce with given resources & technology.
If there is a technological breakthrough in only one good (cloth here) in economy (US here). The new PPF shift outward (rightwards or upwards) only on the axis representing that particular good (on x or y axis respectively). As cloth is on x axis, the PPF will rotate rightward by technological breakthrough in making cloth only.
Yes, on new rightward rotated PPF also, cloth & tea can be traded off, but at an altered slope & marginal opportunity cost (sacrifise ratio).
Answer:
b. 3.4 years
Explanation:
The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
where,
Initial investment is $379,000
And, the net cash flow = annual net operating income + depreciation expenses
= $57,000 + $53,000
= $110,000
Now put these values to the above formula
So, the value would equal to
= ($379,000) ÷ ($110,000)
= 3.4 years
12 I think is the answer it has jus been answered in my test
Answer:
Hi
When a curve moves, the price and the amount of equilibrium change. An increase in demand causes an increase in both price and the amount of balance. A decrease in demand causes a decrease in both the price and the amount of equilibrium.
In the real world, it is easier to predict changes in supply than changes in demand. Physical factors that affect supply, such as weather or the availability of inputs, are easier to control than changes in restrictions that affect demand. Taking into account supply and demand, we can also better anticipate the effects of shifts in the supply curve. An excess of demand causes an increase in the price and a decrease in the quantity demanded, when the supply of a good or a reduced service, the equilibrium price of that good or service increases and the quantity of controlled equilibrium. In summary, an increase in the supply of a good causes a decrease in the price and an increase in the amount of equilibrium. A decrease in supply causes an increase in price and a decrease in the amount of balance.
Explanation: