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3 years ago

The basic difference between macroeconomics and microeconomics is:

Business

1 answer:

I am Lyosha [343]3 years ago

3 0

Answer:

The correct answer is option C.

Explanation:

Microeconomics is the branch of economics that studies the behavior of individual economic agents such as a single firm or a single consumer. For instance, it deals with variables such as demand for a single consumer or a supply from a single firm.

Macroeconomics is that branch of economics that studies the entire economy as a whole. It deals with variables such as inflation, unemployment rate, etc.

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Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 12% and 16%,

monitta

Answer:

Alpha for A is 1.40%; Alpha for B is -0.2%.

Explanation:

First, we use the CAPM to calculate the required returns of the two portfolios A and B given the risks of the two portfolios( beta), the risk-free return rate ( T-bill rate) and the Market return rate (S&P 500) are given.

Required Return for A: Risk-free return rate + Beta for A x ( Market return rate - Risk-free return rate) = 5% + 0.7 x (13% - 5%) = 10.6%;

Required Return for A: Risk-free return rate + Beta for B x ( Market return rate - Risk-free return rate) = 5% + 1.4 x (13% - 5%) = 16.2%;

Second, we compute the alphas for the two portfolios:

Portfolio A: Expected return of A - Required return of A = 12% - 10.6% = 1.4%;

Portfolio B: Expected return of B - Required return of B = 16% - 16.2% = -0.2%.

8 0

3 years ago

At December 31, 2011, Newman Engineering’s liabilities include the following:1. $10 million of 9% bonds were issued for $10 mill

Nadusha1986 [10]

Answer:

total long term debt: 24,000,000

Explanation:

the 1988 bonds will be long-term debt as there is no suggestion to the option to be exercised.

The 1978 bonds will be current liabilities as they matures at 2012

which is within the twelve months time period to be classified as current laibily.

the note payable has an agreement with the bank to not claim it at least until June 2012 The most probable reason is that the 1978 bonds are generating this situation, so once they are retired the normal 2 to 1 ratio will be acomplished, so the note payable will be kept at long term debt

but a note tothe financial statemtn should be made

Long term debt:

1988 bonds: 10,000,000

note payable 14,000,000

total 24,000,000

6 0

3 years ago

Ivanhoe Company reports the following operating results for the month of August: sales $392,000 (units 4,900), variable costs $2

Norma-Jean [14]

Answer:

The best course of action is to increase the selling price by 10%.

Explanation:

Giving the following information:

sales $392,000 (units 4,900)

variable costs (247,000)

fixed costs (96,000)

Current net income= 49,000

First, we need to calculate the unitary selling price and variable cost:

Selling price= 392,000 / 4,900= $80

Unitary variable cost= 247,000 / 4,900= $50.41

Now, we will calculate the impact on net income of each variation:

Increasing selling price by 10%:

Selling price= 80*1.1= $88

Effect on income= 8*4,900= $39,200 increase

Reduce variable costs to 57% of sales.

Unitary variable cost= 80*0.57= $45.6

Effect on income= (50.41 - 45.6)*4,900= $23,569 increase

Reduce fixed costs by $22,000.

Effect on income= $22,000 increase

6 0

3 years ago

If price exceeds average variable cost but is less than average total cost, a firm ___

mylen [45]

Answer:

Explanation:

6 0

3 years ago

Identify an example in your life where you trade some degree of privacy

ollegr [7]

Everytime you walk through the airport, you bags are searched for dangerous things, violating you privacy, but protecting everyone.

8 0

3 years ago