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alexira [117]
3 years ago
5

Which of the following statements is FALSE? Explanation: B. Beta is measured using past information.

Business
1 answer:
Darya [45]3 years ago
7 0

Answer:

Option B => It is common practice to estimate beta based on the expectations of future correlations and volatilities.

Explanation:

Option B is the correct answer that is, ''It is common practice to estimate beta based on the expectations of future correlations and volatilities".

To a layman or scientist, Beta means a Greek word but come to Economics and financial accounting, beta is something related to stock.

Beta is mainly used in the Calculation or determination of risk associated with a particular stock. The Calculations of the fluctuations of stocks in market is what is known as Beta. The predictive Vale of Beta is limited therefore,it is based on past infomation.

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Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead b
kap26 [50]

Answer:

$9.2 0

Explanation:

The calculation of the Finishing Department is shown below:-

Plant - wide overhead rate = Total overhead ÷ Total machine hour

= ($470,000 + $737,900) ÷ ($470,000 + 133,950)

Plant wide overhead rate = $2 per machine hour

Machine hour for product = 4.2 + 0.4

= $4.6 machine hour

Applied overhead = Machine hour for product × Plant wide overhead rate

= $4.6 × $2

= $9.2 0

6 0
3 years ago
Recently, much of the western United States experienced a drought condition, and water usage was restricted in Denver. Yet, even
Paul [167]

Answer:

Price elasticity

Explanation:

Price elasticity  -

It refers to the extent to which the demand or desire for something alters with the fluctuation in the price , is referred to as price elasticity .

As if the price of some commodity goes up , people tends to not buy the thing any more and tries to finds it cheaper alternative .

And , as the price reduces , people tries to buy the specific goods and service .

Hence , from the given scenario of the question ,

The correct answer is price elasticity .

4 0
4 years ago
You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scal
Leya [2.2K]

Answer:

a. The optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0)

b. Yes, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because \pi ^{Cheat} > \pi ^{Cooperate}.

Explanation:

a. Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a "special edition" that will be sold only for one year.

Note: See the attached excel file for the Representation of one shot normal for of the game played between "You" and "Your Rival" together with the payoffs.

From the attached excel file, the dominant strategy is for “You” and “Your Rival” to charge “Low Price” each. If the dominant strategy is played by “You” and “Your Rival”, the optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0).

b. Would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 60 percent chance that Toyota would discontinue the Highlander? Explain.

When we have a year-after-year competition between “You” and “Your Rival” but with a 60 percent chance that Toyota would discontinue the Highlander, the payoffs of the firm that continue to comply with the collusive strategy of charging “High Price” by each firm under the normal trigger strategy whereby “You” and “Your Rival” agree to charge high price as long as there is no past deviation by any of the firm, otherwise charge a low price is as follows:

\pi ^{Cooperate} = $6 + $6(100% - 60%) + $6(100% - 60%)^2 + 6(100% - 60%)^2 …….

\pi ^{Cooperate} = $6 / 6% = $10

Therefore, what the firm that cheats earn today is $11 million and it earns $0 forever. The implication of this is that \pi ^{Cheat} = $11

Therefore, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because \pi ^{Cheat} > \pi ^{Cooperate}.

Download xlsx
7 0
2 years ago
If you wish to accumulate $125,000 in 7 years, how much must you deposit today in an account that pays a quoted annual interest
elixir [45]

Answer:

You need to deposit $58,481.53 today.

Explanation:

a) Data and Calculations:

Future value expected = $125,000

Period of investment = 7 years

Interest rate = 11% compounded quarterly

The amount of deposit needed today to earn $125,000 in 7 years at annual interest rate of 11% is calculated as follows:

N (# of periods)  28

I/Y (Interest per year)  11

PMT (Periodic Payment)  0

FV (Future Value)  125000

Results

PV = $58,481.53

Total Interest $66,518.47

7 0
3 years ago
When deciding on a career path, what is a good step to take after setting the basic career requirements?
Lerok [7]
I would say that once the basic career requirements are decided on then one should do C. make a list of colleges you want to apply to. In this way you will be able to find out the colleges that offer your field of interest and you will be able to check on the quality of their courses and instruction.
8 0
3 years ago
Read 2 more answers
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