The correct options are A AND D.
Great Britain was the most prosperous country in the world before the World War l. But after the war the country experience a period of stagnation because of the huge amount of money which was spent on the war. Britain's purse was as good as depleted when the war was over. Beside, during the course of the war, a lot of factories and industries which produced various goods were destroyed. This drastically reduced the volume of goods that were produced after the war.
<span>The answer is false. The amount of money a borrower receives from the lender is called the loan principal. On the other hand, the discount rate may refer to the charges to the financial institution for lending to other banks. </span>
Answer:
C. Demand for the existing firms' output will become more inelastic
Answer:
5.70%
Explanation:
Stock return for Normal state of economy
= 0.15 × 10.9 + 0.51 × 4.3 + 0.34 × 13.3
= 8.35%
Stock return for Boom state of economy
= 0.15 × 18.2 + 0.51 × 26.2 + 0.34 × 17.7
= 22.11%
Weighted average return
= 0.78 × 8.35 + 0.22 × 22.11
= 11.38%
Standard deviation = Normal probability state of economy × (Stock return for Normal state of economy - Weighted average return)^number of years + Boom probability state of economy × (Stock return for Boom state of economy - Weighted average return)^number of years)^percentage
= 0.78 × (8.35 - 11.38)^2 + 0.22 × (22.11 - 11.38)^2)^0.5
= 5.70%
Answer:
has specific risk
Explanation:
Standard deviation is a measure of central tendency. It measures the variation of data from a central value. As such variables with high standard deviation have values far from the central value while standard deviation close to the central value is low.
So when individual stocks have higher standard deviation it means prices are less stable than that of market portfolio.
This can be attributed to them having specific risk. The market is not subject to diversification risk so prices tend to fluctuate less