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3 years ago

How can a change in income shift a demand for goods?

1 answer:

8 0

The demand of something means how the insistency or desire to purchase that item. When there is a shift in income, demand for goods change drastically. If the income level for a person rises, then the demand for goods that they may not have been able to afford before rises and the cheaper options decline. If the income shift drops, the demand for the goods previously affordable may go down, due to not being able to afford them anymore.

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Here are the returns on two stocks.

kondaur [170]

Based on the returns on Digital Cheese and Executive Fruit, the variance and standard deviation of each stock is:

Variance:

Digital cheese = 56.8
Executive fruit = 34.8

Standard deviation:

Digital cheese = 7.5
Executive fruit = 5.9

This means that Digital Cheese is riskier if held alone.

<h3 /><h3>What are the variances and standard deviations of the stock?</h3>

Using a spreadsheet, one can order the given returns and then find the variance using mathematical functions.

When this is done, the variances on Digital cheese and Executive fruit would be 56.8 and 34.8 respectively.

You can then take the square roots of these variances to find the standard deviations as 7.5 and 5.9 respectively.

Because Digital Fruit has a higher standard deviation, it is considered to be riskier in terms of returns.

Find out more on the standard deviation of returns at brainly.com/question/17191184.

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6 0

2 years ago

Anne is comparing savings accounts. One account has an interest rate of 1.2 percent compounded yearly, and one account has an in

dexar [7]

Answer:

the account that earns 1.2 percent compounded monthly

Explanation:

We are talking about how many money will be earned in interested, which means that the higher percentage in a shorter period of time will earn a higher amount of money.

6 0

4 years ago

_____ occurs when the amount of of capital per worker increases

katrin2010 [14]

<span>Gross domestic product </span>occurs when the amount of of capital per worker increases. The answer is letter A

3 0

3 years ago

Read 2 more answers

The following statements describe a certain country's economy. What type of economy does this country have? I. Most citizens far

AleksandrR [38]

Answer: B. a traditional economy

Explanation:A traditional economy is one which doesn't operate under a profit motive.

Instead, it emphasizes the trading and bartering of products and services that enable participants to subsist in a specific region, community and/or culture. Largely, traditional economies are a way of life in underdeveloped countries that rely more on old-fashioned economic models like farming or hunting than on newer-age modes like industry and technology.

4 0

4 years ago

Read 2 more answers

Blue Hamster Manufacturing INC, is a small firm, and several of its managers are worried about how soon the firm will be able to

Eddi Din [679]

Answer and Explanation:

1. The computation is shown below:-

Expected Cash flow ($6,000,000) $2,400,000 $5,100,000 $2,100,000

Cumulative Cash

flow ($6,000,000) ($3,600,000) $1,500,000 $3,600,000

Conventional Payback

Period 1 0.71

For the computation of cumulative cash flow for the first year, we simply deduct expected cash flow the Year 0 from Year 1 for the second year we added the Cumulative cash flow of year 1 with the expected cash flow of year 2 and for third year we added Expected cash flow of year 3 with a cumulative cash flow of year 2

and for conventional payback period for year 1

Conventional Payback Period = 1 + ($3,600,000 ÷ $5,100,000)

= 1 + 0.71

= 1.71 year

2. The computation is shown below:-

Expected Cash flow ($6,000,000) $2,400,000 $5,100,000 $2,100,000

Discount factor at

9% 1 0.91743 0.84168 0.77218

Discounted Cash

Flow ($6,000,000) $2,201,835 $4,292,568 $1,621,585

Cumulative Discounted

Cash Flow ($6,000,000) ($3,798,165) $494,403 $2,115,988

Discounted Payback

Period 1 0.88

Conventional Payback Period = 1 + ($3,798,165 ÷ $4,292,568)

= 1 + 0.88

= 1.88 year

3. B. Discounted Payback Period.

The payback period is the period in which it tells in how many years the initial investment amount could be recovered and the discounted payback period is the period in which the cash outflows and the cash inflows are discounted

4. B. $2,115,988 which shows the more than the higher the cash inflow above the project investment value.

4 0

3 years ago