Answer:
I, II, and III are all correct and part of this model
Explanation:
The CAPM model or Capital Asset Pricing Model indicates the relationship between the amount of risk and the expected profit for a certain investment. This model holds many assumptions, which from the ones provided we can say that assumptions I, II, and III are all correct and part of this model. The only assumption that is not correct is IV, since the level of risk aversion that each investor has depends on how much they know about their investment.
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Answer:
wages should rise and rents should fall in A
Explanation:
The Factor Price Equalisation Theory states that when two countries trade, the price of identical factors of production will tend to be equalised across the countries. Factors of production include wage rate and rent of capital.
So if a country that is labour abundant trades with another country A there will be tendency for exportation of the excess labour of country B to country A.
As a result country A will become more labour intensive and wages of workers will rise since focus is more on use of labour.
However since less capital will now be used the money spent on renting capital will reduce.
A. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. FALSE
<u>Explanation:</u> If the yield to maturity (YTM) is less than the Coupon rate (CR) the bond is trading at a premium
B. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. FALSE
<u>Explanation:</u> If the yield to maturity (YTM) is greater than the Coupon rate (CR) the bond is trading at a discount.
C. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. TRUE
D. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. TRUE
Answer:
The journal entry to record this should be:;
July 1, Year 202x, cash received as deferred revenue
Dr Cash 7,500
Cr Deferred revenue 7,500
Explanation:
Accrual accounting states that both revenues and expenses must be recorded during the periods that they actually occur, and not necessarily when any cash transfer is associated to them.
In this case, the adjusting entry for accrued revenue on December 31 should be:
December 31, year 202x, accrued revenue
Dr Deferred revenue 1,875
Cr Service revenue 1,875
