Answer:
False
Explanation:
The reason is that the betas are calculated using the past data which means that the Capital asset pricing model solely rely on the past data which is not the strength of the CAPM. It is basically a weakness of the model so the statement is incorrect.
Answer:
In this section, we are going to take a closer look at what is behind the demand curve and the behavior of consumers. How does a consumer decide to spend his/her income on the many different things that he/she wants, i.e., food, clothing, housing, entertainment? We assume that the goal of the consumer is to maximize his/her level of satisfaction or joy, constrained by his/her income.
Economists use the term utility as a measure of satisfaction, joy, or happiness. How much satisfaction does a person gain from eating a pizza or watching a movie? Measuring utility is based solely on the preferences of the individual and has nothing to do with the price of the good. Let’s do an experiment in utility.
Step 01: Get some of your favorite candy, pastries, or cookies.
Step 02: Take a bite and evaluate, on a scale from 0 to 100 (with 100 being the greatest utility), the level of utility from that bite. Record the marginal utility of that bite (i.e., how much you get from that one additional bite).
Step 03: Repeat step 02. It is important to be consistent with each unit consumed, i.e., the same size and no drinking milk or water part way though. When you run out of candy or your marginal utility goes to zero you can stop.
Law of Diminishing Marginal Utility
Answer:
Check the explanation
Explanation:
Using the percentage-of-completion method <em><u>(which is an accounting method or technique in which the earnings and expenses of contracts that are of long-term basis are documented as a percentage of the completed work during a particular period.)</u></em>
Total costs = Incurred costs + estimated costs to complete = $8 million + $12 million = $20 million
Revenue to recognize = $8m/$20m*$28m = $11.2 million
Gross Profit = Revenue recognized less costs incurred
= $11.2m - $8m = $3.2 million
Based on the information given the net income for the year will be is : $2.9 million.
<h3>Net income</h3>
Using this formula
Net income=Dividend declared-Decrease in Ending Retained earning
Where:
Dividend declared=$4.4 million
Decrease in Ending Retained earning=$1.5 million
Let plug in the formula
Net income=$4.4 million-$1.5 million
Net income=$2.9 million
Inconclusion the net income for the year will be is : $2.9 million.
Learn more about net income here:brainly.com/question/13186458
Answer:
The equivalent units for conversion costs is 87,000 units
Explanation:
First, we need to calculate the completed during the month
Completed units = Units begun during the month - Units in Work in process
Completed units = 115,000 - 40,000
Completed units = 75,000 units
Now calculate the equivalent unit in respect of conversion cost as follow
Equivalent units ( Conversion cost ) = Units completed in the month + ( Units in work in process x percentage of completion )
Equivalent units ( Conversion cost ) = 75,000 units + ( 40,000 x 30% )
Equivalent units ( Conversion cost ) = 75,000 units + 12,000 unints
Equivalent units ( Conversion cost ) = 87,000 units
