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iragen [17]
3 years ago
14

For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return for a security with a beta c

oefficient of 1.5?
Business
1 answer:
adoni [48]3 years ago
3 0

Answer:

14%

Explanation:

required rate of return = risk free rate of return + ( risk premium x beta)

5% + 1.5 x 6% = 14%

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Disinflation can be explained by the phillips curve analysis as resulting from a situation where the actual rate of inflation is
lakkis [162]

According to the Phillips curve analysis, disinflation happens when the actual rate of inflation is initially lower than the expected rate, temporarily raising the unemployment rate. However, as nominal wages decline, the unemployment rate will fall to its natural level and the actual and expected rates of inflation will balance out.

Disinflation refers to occurrences where the inflation rate has temporarily slowed and is used to indicate situations where it has only slightly decreased. Disinflation refers to the rate of change in the rate of inflation, as opposed to inflation and deflation, which talk about the direction of prices.

To learn more about Disinflation here

brainly.com/question/14189184

#SPJ4

5 0
1 year ago
You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scal
Leya [2.2K]

Answer:

a. The optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0)

b. Yes, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because \pi ^{Cheat} > \pi ^{Cooperate}.

Explanation:

a. Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a "special edition" that will be sold only for one year.

Note: See the attached excel file for the Representation of one shot normal for of the game played between "You" and "Your Rival" together with the payoffs.

From the attached excel file, the dominant strategy is for “You” and “Your Rival” to charge “Low Price” each. If the dominant strategy is played by “You” and “Your Rival”, the optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0).

b. Would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 60 percent chance that Toyota would discontinue the Highlander? Explain.

When we have a year-after-year competition between “You” and “Your Rival” but with a 60 percent chance that Toyota would discontinue the Highlander, the payoffs of the firm that continue to comply with the collusive strategy of charging “High Price” by each firm under the normal trigger strategy whereby “You” and “Your Rival” agree to charge high price as long as there is no past deviation by any of the firm, otherwise charge a low price is as follows:

\pi ^{Cooperate} = $6 + $6(100% - 60%) + $6(100% - 60%)^2 + 6(100% - 60%)^2 …….

\pi ^{Cooperate} = $6 / 6% = $10

Therefore, what the firm that cheats earn today is $11 million and it earns $0 forever. The implication of this is that \pi ^{Cheat} = $11

Therefore, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because \pi ^{Cheat} > \pi ^{Cooperate}.

Download xlsx
7 0
2 years ago
A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 76 pounds of Kona coffee beans a
Slav-nsk [51]

Answer:

Explanation:

Base on the scenario been described in the question, we use the following method to solve the question

d = 75 lbs/day 200 days per year

D= 15,000 lb/year H= $3/lb/year S= $16/order

6 0
3 years ago
WHAT ARE THE BENEFITS OF PHYSICAL ERGONOMICS​
krok68 [10]

Answer:

▫️Increased savings. • Fewer injuries. • More productive and sustainable employees. ...

▫️Fewer employees experiencing pain. • Implementing ergonomic improvements can reduce the risk factors that lead to discomfort.

▫️Increased productivity. • ...

▫️Increased morale. • ...

▫️Reduced absenteeism. •

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6 0
3 years ago
Read 2 more answers
Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboa
podryga [215]

Answer:

Contribution margin ratio:

For East Coast = 10%

For West Coast = 8.05%

Explanation:

As per the data given in the question,

Contribution margin by sales territory report :

C C S Inc.

Contribution margin by Territory

Particulars                             East Coast                     West Coast

Sales (a)                                $8,400,000                     $8,610,000

(30,000×$280)+(0×$130)

(21,000×$280)+(21,000×$130)

Less: variable cost of goods sold(b) $6,600,000      $6,657,000

(30,000×$220)+(0×$97)

(21,000×$220)+(21,000×$97)

Manufacturing margin (c=a-b) $1,800,000                  $1,953,000

Less: Variable selling expense (d) $960,000             $1,260,000

(30,000×$32)+(0×$28)

(21,000×$32)+(21,000×$28)

Contribution margin (e=c-d)        $840,000                 $693,000

For East Coast:

Contribution margin ratio = (Contribution margin ÷ Sales revenue)×100

=($840,000÷ $8,400,000)×100

= 10%

For west coast:

Contribution margin ratio = (Contribution margin ÷ Sales revenue)×100

=($693,000 ÷ $8,610,000)×100

= 8.05%

4 0
3 years ago
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