Answer:
The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%
Explanation:
Capital Market Line (CML)
Expected return on the market portfolio, E(
) = 12 %
Standard deviation on the market portfolio, σ
= 20%
Risk-free rate, 
= 5%
E(
) = + [ E(
) - ] × ( σ
÷ σ)
= 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)
= 8.5%
<span>The price elasticity of a demand measures the percentage change in the quantity demanded that results from a percentage change in price.
hope it helps!!</span>
Answer:
A. Total assets will increase at the same rate as sales.
Explanation:
<em>Option E</em> is wrong because dividends will not increase at the same rate; therefore, retained earnings will not increase at the same rate as sales.
<em>Option D</em> is incorrect because sales are increasing, which leads to a different profit margin.
As sales increases to a specific percent, owners' equity will not remain constant. So, <em>option C</em> is wrong.
<em>Option B</em> is wrong because long-term debt will not change.
Option A is correct because if sales are credit sales; therefore, total assets will increase at the same rate as sales.
Answer:
a. $3,400
b. $0
Explanation:
As we know
Total assets = Total liabilities + owners equity
a. In the first case
The shareholder equity would be
= Total assets - total liabilities
= $10,800 - $7,400
= $3,400
b. In the first case, the shareholder equity would be zero as it should not be negative. The negative value would be
= Total assets - total liabilities
= $6,500 - $7,400
= -$900
So it would be zero
Answer: The equilibrium price always rises
Explanation:
When the supply shift towards left, the supply curve increases the price of equilibrium and there is decreases in the quantity of the equilibrium. When the demand curve shifts towards right then, the demand curve increasing the price of equilibrium as well as increased the quantity of the equilibrium. This concludes that, the equilibrium price always rises.
