Answer:
Incubators
Explanation:
In north american context the incubators refers to small places for business provided on low rent.
Basically in the given context, the space for new shops for businesses is given by state and city government, this clearly states that because of involvement of government the prices of such place would be really low as compare to private rental spaces.
This provides that because of this facility incubators will grow.
<span>Reduction in a nation's labor force would long-run aggregate supply curse to the left, representing a reduction in labor. This would tend to drive up labor costs over time. Presumably, the demand curve would remain static in the short-term.
However, such a reduction would also impact the nation's consumption and thereby reduce the demand for products. This would in turn drive a decreased demand for labor (leftward shift) and apply downward pressure to wages.
The answer to this depends on whether the questions is regarding short-term, medium-term or long-term labor supply/demand curve.</span>
Answer:
4.5%
Explanation:
Stock R (Beta) = 1.5
Stock S (Beta) = 0.75
Expected rate of return on an average stock (Rm)= 10%
Risk free rate (Rf) = 4%
Required Return (Re) = Rf +(Rm-Rf) B
Required Return = 0.04 + (0.10-0.04) B
Required Return = 0.04 + 0.06B
Stock R = 0.04 + (0.06 * 1.50)
Stock R = 0.04 + 0.09
Stock R = 0.13
Stock R = 13%
Stock S = 0.04 + (0.06 * 0.75)
Stock S = 0.04 + 0.045
Stock S = 0.085
Stock S = 8.5%
Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.
= 13% - 8.5%
= 4.5%
Answer:
108,280.22
Explanation:
Certainty equivalent is solved by taking the inverse utility function from the expected utility of a random wealth variable
U(x) = x^1/4
U^-1(x) = x^4
U^-1(x) === x^4
CE(x) = x^4
Salary Bonus Total income U(x)= x^(1/4) P(x) U(x)*P(x)
80000 0 80000 16.82 1/7 2.4
80000 10000 90000 17.32 1/7 2.47
80000 20000 100000 17.78 1/7 2.54
80000 30000 110000 18.21 1/7 2.6
80000 40000 120000 18.61 1/7 2.66
80000 50000 130000 18.99 1/7 2.71
80000 60000 140000 19.34 1/7 <u>2.76</u>
Sum <u>18.14</u>
CE(x) = 18.14^4
CE(x) = 108280.22
So therefore, the certainty equivalent of this job offer is 108,280.22
Answer:
b. Call for $1,500
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the amount of margin call by using following formula:-
Loss of today = future contracts based total bushels × total contract × (settlement cost per bushels - future contract price per bushels)
= 5,000 cents × 6 × (390 cents - 385 cents)
= 5,000 cents × 6 × 5 cents
= 150,000 cents
And we know that
100 cents = 1 dollar
so,
150,000 cents ÷ 100 =$1,500
Initial margin $878 per future contract and maintenance margin $650 per contract, Margins of both are less than loss .So we have to pay $1,500 in initial margin.
According to the analysis, we will receive $1,500 margin call.
Therefore option (B) call for $1,500 is correct.
