Answer and Explanation:
The computation of the midpoint elasticity is as follows;
Midpoint elasticity
= (Change in labor supplied ÷ Average labor supplied) ÷ (Change in wage rate ÷ Average wage rate)
= [(8 - 4) ÷ (8 + 4) ÷ 2] ÷ [$($45 - $35) ÷ $($45 + $35) ÷ 2]
= [4 ÷ (12 ÷ 2)] / [$10 ÷ ($80 ÷ 2)]
= (4 ÷ 6) ÷ ($10 / $40)
= 0.67 ÷ 0.25
= 2.68
As the elasticity is more than 1 so the supply of labor should be elastic
<span>The mechanism, process, or means by which buyers and sellers are brought together.</span>
Answer:
$4,565.22
; $5,434.78
Explanation:
Weight of X be “W” and Weight of Y be “1 - W”
Expected return = (Stock X × Weight of X) + (Stock Y × Weight of Y)
10.85% = (12.1% × W) + [9.8% × (1 - W)]
10.85% = (12.1% × W) + 9.8% - (9.8% × W)
2.3% × W = 1.05%
W = 45.6522%
Therefore, 1 - W = 54.3478%
Investment in Stock X = 10,000 × 45.6522%
= $4,565.22
Investment in Stock Y = 10,000 - 4,565.22
= $5,434.78
Answer:
46.5%
Explanation:
The treasury bills have zero beta as they have no systematic risk. Beta is used in the Capital asset pricing Model to demonstrate a relationship between systematic risk and rate of return.
Expected Return = Rf + Beta * Rp
The percentage that should be invested in the risky portfolio will be,
1 - 1 / Beta
1 - 1 / 1.87
= 46.5%
Subscription to the automation software such as Zappier
