Answer:
a. Economic assets that are privately owned and exchanged in an open market.
Explanation:
A free enterprise is an economy where where economic factors like price, product, and services are determined by market forces and not by the government.
It is also called capitalism, economic assets are privately owned and competition is the yardstick for market success.
The opposite of this is communism where economic factors are controlled by the government.
Answer:
Expected return is: 7.37% and the Standard deviation is: 24.96%
Explanation:
Correlation between fund S&B=0,0667
Standard Deviation of Fund S=41%
Standard Deviation of Fund(B)=30%
E(R) of Stock Fund S=12%
E(R) of Stock Fund B=5%
Covariance between the funds = Standard Deviation of Fund(B) × Standard Deviation of Fund S × correlation between these funds
Cov = 0.41 × 0.30 × 0.0667 = 0.008204
Now minimum variance portfolio is found by applying:
W min(S)=(SDB)^2-Cov(B,S) / ((SDS)^2+(SDB)^2-2Cov(B,S)
W min(S) = 0.338431
W min(B) = 1-0.338431=0.661569
1) E(r)min= 0.338431 × 12% + 0.661569 × 5% = 7.37%
2) Standard Deviation:
SD Min = (Ws^2XSDs^2+Wb^2XSDb^2+2XWsWb*Cov(s,B)^1/2
SDmin=(0.338431^2 × 0.41^2 + 0.661569^2 × 0.3^2 + 2 × 0.338431 × 0.661569 × 0.008204)^1/2
SDmin=24.96%
<span>Two oil shocks, an expansive monetary policy, and growing competition as Europe and Japan recovered from the devastation of World War II.
By the end of the decade, the country went into what came to be called
stagflation, a combination of no growth and rising inflation. In effect, the country had the worst of both worlds.
President Carter’s appointment of Paul Volcker as Federal Reserve Chair started the path to change. He restricted the money supply in a war that drove up unemployment but eventually tamed inflation.
The Reagan presidency started with cuts in spending and income taxes in what was called a ‘supply-side experiment.’
The intent was to stimulate saving, work, and investment. The emphasis that the supply-side approach put on incentives is now a more prominent part of economic thinking, but the experiment itself led to larger fiscal deficits.</span>
I think it's one and four but not so sure?
Did that help?
Answer:
10%; 16%
Explanation:
Given that,
Real GDP in the first quarter of 2016 = $10 billion
Real GDP in the first quarter of 2017 = $11 billion
Increased from the fourth quarter of 2016 to the first quarter of 2017 = 4%
Growth rate from the first quarter of 2016 to first quarter of 2017:
= 
= 
= 10%
Real GDP growth rate is as follows:
= 4% × 4
= 16%
