Answer:
The correct answer is I and II.
Explanation:
Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets because of several reasons.
The financial intermediaries such as commercial banks, mutual funds, insurance companies, pension funds, etc. are more diversified than individual investors. They provide a number of options for borrowing and lending.
These intermediaries work on a larger scale than an individual investor. They are thus able to reap the advantages of economies of scale which an individual investor cannot.
Answer:
The correct answer is letter "E": Accessory equipment.
Explanation:
Accessory equipment comes with certain products but does not influence their performance. Removing accessory equipment from the good it is attached to does not damage the product. Accessory equipment is nonexpendable and not used for the production of an item.
<em>When it comes to shipping, pallets can be considered accessory equipment since they help organizing the products being delivered reducing costs.</em>
Answer:
The answer is Concentrated Marketing
Explanation:
Concentrated Marketing is a strategy whereby a product is developed and marketed for a very well defined and specific segment of the consumer population.
Answer:
The correct answer is b. Take advantage of economies of scale and scope by opening a chain of lower priced economy hotels that leverage the Coastal Haven brand image.
Explanation:
The economy of scale refers to the power that a company has when it reaches an optimum level of production to produce more at a lower cost, that is, as production in a company grows, its costs per unit produced are reduced. The more it produces, the less it costs to produce each unit.
In other words, it means that if in a production function the quantity of all inputs used is increased by one percentage, the output produced can increase by that same percentage or increase by greater or lesser amount than the same percentage. If it increases by the same percentage, we would be faced with constant economies of scale, if it were in more, they would be growing economies of scale, if it were in less, in decreasing economies of scale.
In microeconomics, economy of scale is understood as the advantages in terms of costs that a company obtains thanks to the expansion and good synergies that it has applied to its competitive environment
.
The concept of "economies of scale" serves for the long term, and refers to reductions in unit cost as the size of an installation and the levels of input utilization increase. The usual sources of economies of scale are the inventory (large-scale purchase of materials through long-term contracts), management and logistics (increasing the specialization of managers), financial (obtaining lower interest costs in bank financing), marketing and technology (benefiting of the scale yields in the production function).
Answer:
a.
Excess return for Zynga today will be -3.38%
b.
Excess return on P&G today will be -1.04%
Explanation:
The excess return is the return earned above/beyond the benchmark return. This benchmark can be set at either the risk free rate or any other stock or portfolio's return.
The return on a stock is usually calculated using the CAPM equation. The CAPM considers risk free rate, the return on market and the stock's beta to calculate the expected return on a stock.
The market always has a beta of 1. Beta is the measure of the volatility of stock returns. If the excess return on the market falls or rises, the effect of this on a stock's excess return will be based on its beta.
a.
The excess return of Zynga today will be = -2.6% * 1.3 = -3.38%
b.
The excess return of P&G today will be = -2.6% * 0.4 = -1.04%
