Answer:
The expected return on this stock is:
C. -6.80%.
Explanation:
a) Data and Calculations:
State of the Economy Probability E(R) Weighted Value
Boom 0.40 16% 0.064
Recession 0.60 -22% -0.132
Total expected returns -0.068
= -6.8%
Let us assume that this stock is Stock A. Therefore, Stock A's expected return is given by adding the weighted returns of the two economic states of Boom and Recession. The result shows that the returns will be negative (-6.8%). This implies that instead of appreciating in value, the stock will actually depreciate by 6.8%.
Answer:
The correct answer is letter "B": consume more of good B and less of good A.
Explanation:
Marginal Utility is a common economic term referring to the extra benefit or satisfaction obtained by buying one additional unit of a good or service. Something has utility in economics if it meets any consumer desire or needs, whether for use or pleasure. People buy when the marginal utility is greater than the marginal cost, and when the marginal utility is less than the marginal cost, they do not.
Thus, if good A is twice the price of good B both having the same marginal utility, g<em>ood B should be consumed more because good A marginal utility is less than </em><u><em>its</em></u><em> marginal cost compared to good B</em>.
277777.777778 is the answer
Answer:
$3,750
Explanation:
The computation of the annual holding cost is shown below:
= Economic order quantity ÷ 2 × holding cost per box per year
where,
Economic order quantity = 500 boxes
And, the holding cost per box per year is $15
Now putting the values to the above formula
The annual holding cost is
= 500 boxes ÷ 2 × $15 per box per year
= 250 boxes × $15 per box per year
= $3,750
The correct answer is market price.
Market price is the price that you normally pay when you want to buy something. This price is usually higher than what the store that is selling it got it from the manufacturer, because it is buying the product in bulks. You as a consumer will have to pay this price when all discounts, allowances, and rebates are subtracted.
