Hidden taxes are taxes that consumers don’t see. Are they fair? Well, that’s depends who is “fair” directed to. Because these taxes are not visible, they don’t any effect on the purchasing power. So, are they fair? It doesn’t make a difference because you can’t see them.
Answer: c. decrease.
Explanation:
If the cost of operating airplanes increases on account of gasoline prices rising, it means that running an airline service would be more expensive.
In the long-run, there is zero economic profit as companies keep entering and exiting the market. If costs increase as they have done here, there will be an economic loss. Several firms will therefore exit in order to avoid these costs which would lead to the number of airlines decreasing.
When they decrease, prices will then go up till the economic profit is zero once more.
Answer:
<u>d. Increases allocation to any stock that changes its corporate name</u>
<u>Explanation</u>:
This manager that does this practice is least likely to replicate performance because that is an unprofessional practice.
In most cases when there is a change in the name of a stock it indicates a red signal that the stock price is bad and thus the company may decide to change it's name, thus the future performance of the company diminishes.
The standard deviation should decrease because there is now a lower probability of the more extreme outcomes. The expected rate of return on the auto stock is now
<h3>How is the variance calculated?</h3>
[0.3 × (–8%)] + [.4 × 5%] + [.3 × 18\%] = 5%[.3×(–8%)]+[.4×5%]+[.3×18%] = 5%
The variance is
[.3× (–8 – 5
] + [.4× (5 – 5] + [.3×(18 – 5] = 101.4
The standard deviation is √101.4 = 10.07 percent, which is lower than the value assuming equal probabilities of each scenario.
To learn more about variance, refer
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