Answer: Option (D) is correct.
Explanation:
Correct option: A nation cannot have a comparative advantage in the production of every good.
A country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower than the other country.
While calculating the opportunity cost of producing a commodity, country takes into account both the commodities. Hence, it was not possible that a country is having comparative advantage in the production of every commodity.
Answer:
a tax-rate for 25% will make the investor be indifferent between there two bonds
Explanation:
The Municipal bonds are tax free. Therefore, do not pay the income tax for their interest.
We need to set and equation for the net yield of the bonds after tax, which equal the municipal bond:
debt after tax:
cost of debt ( 1 - t) = after-tax
we want to equalize 8% pre-tax with 6% after-tax
0.08 ( 1 - t ) = 0.06
t = 1 - 0.06/0.08 = 1 - 0.75 = 0.25 = 25%
a tax-rate for 25% will make the investor be indifferent between there two bonds
Answer:
Yes
Explanation:
I think Hollywood and record companies have a right to mandate changes in order to insure or enforce copyright law.
This is because Copyright law sets out to protect ownership of an original creative work by preventing unauthorized usage of the work. The creative work can be in the form of ideas, artwork, book or other forms of media. hence Hollywood and record companies have a right to enforce copyright laws by mandating changes to audio or video technology .
Answer:
A. $5.6 million
Explanation:
Value at risk is the minimum value of portfolio that is considered to lose in case of certain event or volatility. There are two assets in the given scenario and both of them have worth of $10 million. The correlation between them is 0.1 which means there is low strength relationship between the two assets. The value at risk can be found by:
($10 * 5% * 20%) + ($10 * 16% * 25%) * log 1.65
= 5.6 million
Answer:
Fairness, lawful, righteous, telling the truth, being equal.
Explanation:
