Answer:
c. Stock A
Explanation:
The future expected value of each stock is given by the sum of each possible outcome multiplied by its correspondent likelihood.
For Stock A, the expected value is:
For Stock B, the expected value is:
Both stocks have the same expected value, so it would be reasonable to assume that the investor could pick any of the two options. However, since A has a lower associated risk (Worst case scenario is better than stock B), the investor should choose stock A.
Explanation:
This is :
This situation describes undue influence, which arises from a relationship in which one party can, through unfair persuasion, influence or overcome the free will of another. Other examples of such relationships include business partners, attorney-client, and doctor-patient. A contract entered into under undue influence lacks voluntary consent and is voidable. In this question, the influence of Evan over Nero is buttressed by Nero’s reliance on Mervyn for support. Nero does not have a claim for duress, but Mervyn’s influence over Nero’s investment decision is an exercise of undue influence. The contract is primarily for the benefit of Mervyn, and Mervyn used unfair persuasion in securing Nero’s funds. Nero can avoid the contract.
Answer:
C.
Explanation:
Capital Gain Taxes are the taxes paid by people on the capital gain. Capital gain can be defined as a rise in the value of an investment than the purchase value. In simple terms, when a price of a capital asset increases in the market than the price used for the purchase, the investor has to pay the capital gain taxes.
<u>From the given options, the correct statement for the capital gain taxes is option C. It reduces the profit earning from the investments. The investor has to pay the tax according to the tax bracket which varies from 0%, 15% or 20%.</u>
So, the correct answer is option C.
Answer:
4.04%
Explanation:
A = P(1+r)^n
A is the total amount Simone would repay = $969
P is the amount lent Simone = $950
n is the duration for the loan to be repaid = 6 months = 6/12 = 1/2 year
969 = 950(1+r)^1/2
(1+r)^1/2 = 969/950
(1+r)^1/2 = 1.02
1+r = 1.02^2
1+r = 1.0404
r = 1.0404 - 1 = 0.0404 = 4.04%
Rate of return is 4.04%