If the required reserve ratio is 2.50 percent, the monetary multiplier is 40.
The money multiplier gives us the ratio of deposits to reserves (i.e. 1/R). That means, if the reserve ratio is 2.50% (i.e. 0.025), the money multiplier is 40 (i.e. 1/0.025). Thus, an initial deposit of USD 1,000 will end up creating a total of USD 40,000 in new money.
If the monetary multiplier is 5, the required reserve ratio is 20%.
Playing with the original multiplier formula, we can derive that R=1/m (m is money multiplier). If the money multiplier is 5, then the reserve ratio is 20% (i.e. 1/5 or 0.20).
Answer:
D. Dashboard
Explanation:
Dashboard: It is a tool that allows the user to have a glance of multiple information in one platform, it helps to take insight and do performance analysis with the required key performance indicator. It is very powerful tool used in corporate management as it summarizes the complex data into easier and relevant information as required for a particular department or business. It makes a manager´s job easier and effective decision making.
Innovation<span> can be defined simply as a "new idea, device, or method".</span><span> However, innovation is often also viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs.</span><span> This is accomplished through more-effective </span>products<span>, </span>processes<span>, </span>services<span>, </span>technologies<span>, or business models that are readily available to </span>markets<span>, </span>governments<span> and </span>society. The term "innovation" can be defined as something original and more effective and, as a consequence, new, that "breaks into" the market or society.<span> It is related to, but not the same as, </span>invention.<span> Innovation is often manifested via the </span>engineering<span> process. The </span>exnovation<span> is the opposite of innovation.</span>
Answer:
r = 0.235 or 23.5%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
r = 0.06 + 2.5 * 0.07
r = 0.235 or 23.5%
Answer:
20.91%
Explanation:
Provided information
Average historical rate of return = 10.1 %
Variance = 0.0116751
By considering the above information, the standard deviation would be
= Square root of Variance
= 10.81%
So the upper percentage range of return would be
= Standard deviation + standard deviation
= 10.81% + 10.1%
= 20.91%
Since we have to find out the upper percentage so we added it otherwise we have to deduct it
