Demand supply and market equilibrium will have many changes due to change in the quantity of a supplied product.
Answer: Consumer price index (CPI) is weighted price index of basket of good that a consumer purchases each month. CPI is fixed in nature. It is an economic indicator. A rise in CPI indicates consumer inflation rate. The are type of bias that effects the measurement of CPI are: substitution bias, quality bias and outlet bias.
Explanation: Following are the bias:
- <u>Substitution Bias</u>- it arises when prices in the consumer basket increases and consequently low price alternatives or substitutes are opted by the consumer. As we know CPI is fixed-weight price index so the impact is not predicted accurately.
- <u>Quality bias</u>- It arises when any increase in technology increases the quality life of a product. Constant change in the quality of the product again does not reflect in consumer price index.
- <u>Outlet bias</u>- consumer shifts to new places or outlets as per their taste and preferences which is again not well represented by the CPI.
Answer:
dragons were mithecal creatures
Explanation:
Answer: McGregor's XY Theory of Management
Explanation:
It can be deduced that the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
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How to calculate the expected
rates of return</h3>
E(RA) = 0.1 (10%) + 0.2 (13%) + 0.2 (12%) + 0.3 (14%) + 0.2 (15%)= 13.2%
E(RB) = 0.1 (8%) + 0.2 (7%) + 0.2 (6%) + 0.3 (9%) + 0.2 (8%)= 7.7%
Therefore, the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
The standard deviation will be calculated thus:
Var(RA) = [0.1 (10%-13.2%)² + 0.2 (13%-13.2%)² + 0.2 (12%-13.2%)² + 0.3 (14%-13.2%)² + 0.2 (15%-13.2%)2 ] 1/2
= 1.5%
Var(RB) = [0.1 (8%-7.7%)² + 0.2 (7%-7.7%)² + 0.2 (6%-7.7%)² + 0.3(9%-7.7%)² + 0.2 (8%-7.7%)² ] 1/2
= 1.1%
Therefore, the standard deviation of stocks A and B are 1.5% and 1.1% respectively.
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