Answer:
we are only given information about assets A and B, no information is given about assets C or D. But you should be able to solve the question in a similar manner.
- rate of return asset A = 42.86%
- rate of return asset B = 25%
Explanation:
using the future value formula
Asset A:
future value = present value x (1 + r)ⁿ
future value = $200
present value = $140
n = 1
1 + r = $200 / $140 = 1.4286
r = 0.4286 = 42.86%
Asset B:
1 + r = $200 / $160 = 1.25
r = 0.25 = 25%
Answer:
e) 3.38%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Required rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For A
= 4.25% + 0.70 × (11.00% - 4.25%)
= 4.25% + 0.70 × 6.75%
= 4.25% + 4.725%
= 8.975%
For B
= 4.25% + 1.20 × (11.00% - 4.25%)
= 4.25% + 1.20× 6.75%
= 4.25% + 8.1%
= 12.35%
So, the difference would be
= 12.35% - 8.975%
= 3.375%
The (Market rate of return - Risk-free rate of return) is also known as market risk premium
Answer:
. Accounts payable
Explanation:
A liability is a debt or a financial obligation that an individual or a firm owes to other parties. It is money owed to somebody else or another company. Liabilities arise as firms and individuals engage in their normal business operations.
Liabilities can be short-term and long-term. Short term liabilities are obligations that a company expects to repay within the financial year. They comprise of invoices for goods and services received, but payments have not been made. Long-term liabilities are debts that a company will repay over a period exceeding one year. They are mostly used to finance business expansion.
Answer:
Labor force 19,300
Labor Force participation Rate: 64.33%
Explanation:
working population 17,700
unemployed actively looking for work <u> 1,600 </u>
Total Labor Force 19,300
Labor Force Participation Rate (LFPR):
It is the quotient between the Labor force and the total number of people eligible for a job
19,300/30,000 = 0.6433 = 64.33%
This will be the percentage of the population over 16 year which, are actively looking for a job or are already hired in one.
Answer:
A. $200
B. Fall
C. Inflationary expenditure gap and employment levels are higher than the full employment level.
Explanation:
A. Equilibrium occurs where real output (Y) equals aggregate expenditures (AE), where AE = C + Ig+ G +Xn.
Therefore the equilibrium value is:
Y = AE = C + Ig+ G +Xn
= $120 + $60 +(-$10) +$30 = $200
B. If real GDP is $230 and the aggregate expenditures of $200 will result in positive unplanned inventory investment which means GDP will fall as firms respond to the inventory build-up by reducing output.
C. C + Ig+ G +Xn
$170 + $60 + (−$10) +$30 =$250
Therefore since full-employment and full-capacity output in the economy is $230 there is an inflationary expenditure gap and employment levels are higher than the full employment level.
