Answer:
The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.
Explanation:
<u>For First stock </u>
Total dividend from first stock = Dividend per share * Number quarters = $0.32 * 2 = $0.64
HPR of first stock = (Total dividend from first stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($0.64 + ($31.72 - $27.85)) / $27.85 = 0.1619, or 16.19%
Annualized holding period return of first stock = HPR of first stock * Number 6 months in a year = 16.19% * 2 = 32.38%
<u>For Second stock </u>
Total dividend from second stock = Dividend per share * Number quarters = $0.67 * 4 = $2.68
Since you expect to sell the stock in one year, we have:
Annualized holding period return of second stock = The 1-year HPR for the second stock = (Total dividend from second stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($2.68+ ($36.79 - $34.98)) / $34.98 = 0.1284, or 12.84%
Since the Annualized holding period return of first stock of 32.38% is higher than the Annualized holding period return of second stock of 12.84%. the first stock will provide the better annualized holding period return.
The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.
Atlantic Coffee has recently decided to raise its prices by10%. It was shocked by its customers' reaction to the price increase when sales dropped24%. such a sharp drop in sales occurs because:_the demand for a specific brand of coffee is highly elastic.
The market fee is the modern rate at which an excellent service can be purchased or sold. The market price charge of an asset or carrier is decided with the aid of the forces of delivering and calling for; the fee at which the amount provided equals the amount demanded is the marketplace rate.
The primary price is the amount receivable through the manufacturer from the customer for a unit of an amazing or provider produced as output minus any tax payable, and plus any subsidy receivable, by means of the producer as a result of its manufacturing or sale.
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Race, religion, type of dwelling, gender, brand last purchased, and buyer/nonbuyer are examples of <u>nominal measures</u>.
The nominal level of dimension is the least particular and informative, as it handiest names the 'characteristic' or 'identity' we're involved. In different phrases, in nominal variables, the numerical values simply "name" the characteristic uniquely. In this situation, the numerical value is truly a label.
Dwelling type refers back to the kind of living quarters in which a person resides. In general phrases, a dwelling is described as a set of dwelling quarters. forms of living are recognized in the Census, collective dwellings and private dwellings.
A brand is an intangible marketing or enterprise concept that enables people to become aware of an agency, product, or man or woman. Human beings regularly confuse brands with such things as trademarks, slogans, or different recognizable marks, that are advertising and marketing equipment that help sell items and services.
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Answer:
c. dynamic pricing.
Explanation:
Dynamic pricing is when the price of a product is not fixed but flexible. Prices change based on changes in demand. It is also known as surge pricing or demand pricing.
The Coffee Express company reduces its prices on the weekends due to a fall in demand. This is Dynamic pricing.
Cross price elasticity measures the degree of responsiveness of quantity demanded of a good to changes in the price of another good.
The income effect measures how consumption and demand for a product changes when real income changes.
The substitution effect measures how a consumer subsistuites one good for another good when there's a change in price.
