The FDIC stands for Federal Deposit Insurance Company.
By raising the limit on insured losses the FDIC helps stabilize the system by instilling confidence.
If the consumer knows that their savings accounts are protected up to $250,000 they will be encouraged to spend money during a time of crisis.
Because of the increased limit, there is less probability that there would be something called
"a run on the bank."
Variance reports are internal reports for management. They are used primarily for the purposes of internal accounting and auditing.
Answer:
0.98
Explanation:
Computation for Bill Duke portfolio's beta
First step is to find the Investment in Y which is:
Investment in Y=100,000-35,000
=$65,000
Second step is to calculate for the Portfolio beta using this formula
Portfolio beta=Respective beta*Respective Investment weight
Portfolio beta =(35,000/100,000*1.5)+(65,000/100,000*0.7)
Portfolio beta=(0.35*1.5) +(0.65*0.7)
Portfolio beta =0.525 +0.455
Portfolio beta=0.98
Therefore the Portfolio Beta will be 0.98
Answer: b. The company did not define its business in terms of the benefits customers seek.
Explanation:
In order for a business to make money, it needs to provide its customers with what they want not what the company wants the customers to want.
In this scenario, people switched to shampoos that could be used by people of all ages instead of just small children because this is what they wanted but not what the company provided. If the company had defined its business in terms of what their customers wanted, they would have made an all age shampoo which would have been bought.
