The preferred stock effect is not a notion that can be used to explain abnormally high excess stock returns.
<h3>What is the preferred stock?</h3>
The term "stock" refers to a company's ownership or equity. Common stock and preferred stock are the two forms of equity. Preferred investors are entitled to more dividends or asset distributions than common stockholders. The specifics of each preferred stock vary depending on the issuance.
When it comes to dividends, preferred stockholders have a preference over ordinary stockholders, which typically yield more than common shares and might be paid monthly or quarterly. These dividends can be fixed or determined by reference to a benchmark interest rate, such as the London Interbank Offered Rate.
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The greatest amount of satisfaction comes from good's consumption of utility or say utility maximizer.
<h3>What is the term about?</h3>
A utility maximizer is known to be a person that seeks to get the highest satisfaction or happiness.
Utility is known to be the happiness or benefit consumers gotten from a good's consumption.
Therefore, The greatest amount of satisfaction comes from good's consumption of utility or say utility maximizer
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Answer:
Option D
To me, I think option D is the most preferred answer
Answer:
20 years (scenario A) and 16 years (scenario B)
Explanation:
The real GDP will double in "n" number of years, with "n" estimated by interpolation using the formula below.
![current GDP * (1+Growth Rate)^{n} = 2 * current GDP](https://tex.z-dn.net/?f=current%20GDP%20%2A%20%281%2BGrowth%20Rate%29%5E%7Bn%7D%20%3D%202%20%2A%20current%20GDP)
In the solutions below, we assumed current GDP to be 1, and as a result, the GDP will double to 2.
Scenario A
![1 * (1+0.35)^{n} =2](https://tex.z-dn.net/?f=1%20%2A%20%281%2B0.35%29%5E%7Bn%7D%20%3D2)
When you substitute 20 for "n" in the left hand side (LHS) of the equation, you will arrive at 1.99 which is approximately equal to 2. Any number below 20 will result in a number less than 2.
Thus, with an average annual real GDP growth rate of 3.5%, real GDP will double in about 20 years.
Scenario B
![1 * (1+0.45)^{n} =2](https://tex.z-dn.net/?f=1%20%2A%20%281%2B0.45%29%5E%7Bn%7D%20%3D2)
When you substitute 16 for "n" in the left hand side (LHS) of the equation, you will arrive at 2.02 which is approximately equal to 2. Any number below 16 will result in a number less than 2.
Thus, with an average annual real GDP growth rate of 4.5%, real GDP will double in about 16 years.
Answer
Food is what we get from agriculture.
To rank the given option from the highest to lowest degree of importance, we need to do a little research on the each of the individual subjects.
these can be arranged in the following order.
(1) Food
(2) agriculture
(3) natural resources careers.