Answer:
REAL GDP
Explanation:
GDP typically used as a variable to measure a nation's economic strength within a certain time period. But often time, the value of GDP is a little bit jaded. If the inflation is high, an increase in GDP doesn't really mean that the country become more productive.
This is why there are many experts prefers to use REAL GDP as a more accurate unit to measure the economic strength.
Answer:
The beta coefficient for Stock L that is consistent with equilibrium
Explanation:
According to Capital Asset Pricing Model, the formula to compute expected rate of return is equals to
Expected rate of return = Risk free rate of return + Beta × (Market risk - risk free rate of return)
where,
rRF = risk free rate of return
rM = market risk
Stock L that is consistent with equilibrium is expected rate of return which equals to = 9.25%
So,
9.25% = 3.6% + Beta × (8.5% - 3.6%)
9.25% = 3.6% + 4.9% Beta
9.25% - 3.6% = 4.9% Beta
5.65% = 4.9% Beta
Beta = 5.65% ÷ 4.9% = 1.15
Hence, the beta coefficient for Stock L that is consistent with equilibrium is 1.15
Answer:
Add a term rider
Explanation:
To satisfy the need for additional coverage at a low price the Q can add a term life insurance rider.
The addition of a term rider will allow Q for the additional coverage to be put into place at an affordable price, without having to acquire another policy.
As term rider is a fixed benefit policy thus, ordinary straight whole life will not allow an increase in face amount.
Answer:
d. a $10,000 decrease.
Explanation:
The computation of the impact on the income is given below:
In case of making the product
= Direct material + direct labor + variable manufacturing overhead + rented
= $100,000 + $160,000 + $60,000 + $10,000
= $330,000
And, in case of buying the product
= 20,000 × $17
= $340,000
So there is a decrease of $10,000
