Answer:
B) outward shift of the PPF.
Explanation:
The production possibilities frontier (PPF) refers to the different combinations of production output for two different goods that can be produced given a fixed amount of available resources (e.g. machinery, materials, labor).
If there is an increase in the availability of resources (e.g. more materials are available or more machines are used), then more goods can be produced. Therefore the PPF curve should shift outwards since total output will increase.
Answer:
e, e ,i, i, i, e is the order from top to bottom
I'd say that D. all of the above would result in a positive net worth. So, lowering mortgage by $1,000, increasing investment fund by $500, and a<span>dding $100 to savings.</span>
Answer:
The amount of cash collections from customers reported by Alex company for the year ended December 31, 2018 is $4,125,000.
Explanation:
Cash collection refers to the collection of cash from from an individual or a business whom invoice has been issued to. Any invoice unpaid are noted as being outstanding.
Cash collection fomular is therefore;
Cash collection = Sales on account + Cash sales + Decrease in accounts receivable
=$2,100,000 +$1,110,000 + $915,000
=$4,125,000
Answer: A;B
Explanation:
<em>Consider the single factor APT. Portfolio A has a beta of 1.7 and an expected return of 19%. Portfolio B has a beta of .6 and an expected return of 15%. The risk-free rate of return is 11%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio </em><em><u>A</u></em><em> and a long position in portfolio </em><em><u>B.</u></em>
You should take a short position in the Portfolio with a lower risk premium and a long position on the Portfolio with a higher risk premium.
Using the single factor APT, the formula for risk premium can be derived from;
E(r) = Rf + beta (Risk premium on factor)
<u>Portfolio A</u>
19% = 11% + 1.7 * Risk premium
1.7 * risk premium = 8%
Risk Premium = 4.7%
<u>Portfolio B</u>
15% = 11% + 0.6 * RP
0.6 * RP = 4%
RP = 6.67%
Portfolio A Risk premium is lower so it should be <u>shorted.</u>
Portfolio B Risk premium is higher so it should taken a <u>long position</u> in.