All categories

3 years ago

Which of the following is most likely to be characterized by substantial asymmetric information?

Business

1 answer:

Black_prince [1.1K]3 years ago

5 0

Answer:

Explanation:

Asymmetric information refers to when one party in a transaction has a substantial more amount of information than the other party. This being the case it can be said that the scenario that would most likely be classified as this is a wireless service that includes unlimited minutes and texting. This is because the buyer is most likely thinking that they are getting a great deal when in fact the seller/provider has access to information that the buyer does not know, which allows them to provide this deal and still make a great profit.

You might be interested in

Stock A has an expected return of 10% and a standard deviation of 20%. Stock B has an expected return of 13% and a standard devi

Nina [5.8K]

Answer:

Expected Portfolio return = 0.5(10)+0.5(13)= 5+6.5=11.5%

Expected Portfolio SD= 0.5(20)+0.5(30)= 25%

Beta of A, 10= 5+B(6)

5=6B

B= 5/6= 0.833

B of B, 13=5+B(6)

8=6B

B=8/6

B=1.33

b. Portfolio AB's standard deviation is 25%

c. Stock A's beta is 0.8333

These two statements are correct

Explanation:

3 0

3 years ago

When a preschooler begins showing fear of new situations ,you'll recognize that the child

Tasya [4]

They being to fear things that could happen in real life.

6 0

3 years ago

Read 2 more answers

Bebe Rexha has AGI of $100,000 and makes the following expenditures:

shutvik [7]

Answer:

$31000 will be allowed as expenditure

Explanation:

given data

Wheelchair = $10,000

Whirlpool bath = $10,000

Maintenance = $1,000

Increased utility bills = $1,000

various home modifications = $10,000

solution

as here value of the home increased = $1000

and that is increaed utility bill of the whirlpool

so that expenditure will be added to value of asset

total expenditure is = $10000 + $10000 + $10000 + $1000 = $31000

so $31000 will be allowed as expenditure

7 0

3 years ago

Current Attempt in Progress

Kamila [148]

Answer:

units

Explanation:

Units Unit Cost Total Cost

April 1 inventory 250 $28 $ 7,000

April 15 purchase 350 34 11,900

April 23 purchase 400 36 14,400

1,000 $33,300

4 0

3 years ago

A 50 year old customer receives an inheritance of $1,000,000 which he places with an investment adviser to invest with the objec

AfilCa [17]

Answer: 10%

Explanation:

Given that :

Worth of investment = $1,000,000

Worth after 1 year = $1,300,000

Worth after 2 years = $1,200,000

From the above, investment recorded $300,000 increase after one year and $100,000 Depreciation at the end of the second year.

Therefore, Net increase:

$300,000 - $100,000 = $200,000 (after 2 years)

Therefore, average yearly/annual increase = $200,000 / 2 = $100,000

Therefore, the annual return on the investment is :

(Annual increase / investment worth) × 100%

(100,000 : 1,000,000) × 100%

0.1 × 100% = 10%

= 10%

8 0

3 years ago