This is known as Data Visualization
Answer: Yes they will.
Explanation:
With high interest rates, the company will be able to make better returns if they invested the money and took advantage of those interest rates instead of spending the money on their project.
Assets like bonds will be better to go into because they will offer a return based on the higher interest rates which will bring in good returns.
The company is free to use those funds to invest in projects if these projects will lead to a better return than could be gotten from holding bonds but if that is not the case, they should simply buy bonds and hold them for superior returns.
Total internal reflection occurs when the angle of incidence when it <span> exceeds the critical angle. When waves reaches the boundary of the different materials or when it exceeds that the time when total internal reflection occurs. It says that the larger the angle the smaller the fraction of light transmitted.</span>
Answer:
a) Re = Rf + [beta x (Rm - Rf)
10% = 5% + [1 x (Rm - 5%)]
5% = Rm - 5%
Rm = 10%
risk premium = Rm - Rf = 5%
b) Re = 5% + (1.5 x 5%) = 12.5%
c) Re = 5% + (0.7 x 5%) = 8.5%
since Re is lower than the expected return of the project, the NPV is positive.
d) 11.5% = 5% + (beta x 5%)
6.5% = beta x 5%
beta = 6.5% / 5% = 1.3
Answer:
a) This will be a beneficial policy if the price elasticity of demand for sterile needles is elastic and the cross-price elasticity of demand between drugs and sterile needles is positive and high.
b) This is a bad policy if the price elasticity of demand for sterile needles is inelastic and the cross-price elasticity of demand between drugs and sterile needles is negative and high.
Explanation:
a) In what circumstances do you believe this is a beneficial policy?
This will be a beneficial policy if the price elasticity of demand for sterile needles is elastic and the cross-price elasticity of demand between drugs and sterile needles is positive and high.
The elastic price elasticity of demand for sterile needles implies that the quantity demanded for sterile needles is higher than the change in its price.
The positive cross-price elasticity of demand implies that both drugs and sterile needle are substitutes. Therefore, the quantity demanded of drugs falls as the price of sterile needle falls to zero.
b) In what circumstances do you believe this is a bad policy?
This is a bad policy if the price elasticity of demand for sterile needles is inelastic and the cross-price elasticity of demand between drugs and sterile needles is negative and high.
The inelastic price elasticity of demand for sterile needles implies that the quantity demanded for sterile needles is lower than the change in its price.
The negative cross-price elasticity of demand implies that both drugs and sterile needle are compliments. Therefore, the quantity demanded of drugs increases as the price of sterile needle falls to zero.
