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Nezavi [6.7K]
2 years ago
12

If the price of money (e.g., interest rates and equity capital costs) increases due to an increase in anticipated inflation, the

risk-free rate will also increase. If there is no change in investors' risk aversion, then the market risk premium (rM - rRF) will remain constant. Also, if there is no change in stocks' betas, then the required rate of return on each stock as measured by the CAPM will increase by the same amount as the increase in expected inflation.
a) true
b) false
Business
1 answer:
goldenfox [79]2 years ago
7 0
It may be true but double check
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Although most people want maximum attainment of every economic goal, there is the operating reality of ________________________
bixtya [17]

Although most people want to maximum attainment of every economic goals, there is the operating reality of opportunity cost that causes us to give up some of one thing if we want more of another.

<h3>What is Opportunity Cost?</h3>

Opportunity cost is a concept in economics and it refers to the cost of something that has to be given up to enjoy something better. This can be for example the benefits of second best alternatives (when the first best is chosen) or alternative use of something, which is not decided on (the cost of not using land for farming and using it for building a house instead).

It is the amount or benefits an individual or organization get when they choose a particular products over another one.

The advantage could be monetary benefits.

Therefore, we can conclude that Although most people want to maximum attainment of every economic goals, there is the operating reality of opportunity cost that causes us to give up some of one thing if we want more of another.

Learn more about Opportunity Cost on:

brainly.com/question/1549591

#SPJ4

8 0
1 year ago
Which option identifies the concept represented in the following scenario?
MArishka [77]

Answer:

dumping

Explanation:

Dumping in international trade refers to exporting goods to another country at a lower price than in the domestic market. A company or country involved in dumping may sell goods in a foreign country below the production cost. The objective is to gain market penetration and acquire a sizable market share in the targeted country.

Dumping enables customers in the importing country to buy goods at a lower price. However, it may kill local industries leading to the closure of businesses and layoffs.

7 0
3 years ago
Mr.​ Beautiful, an organization that sells weight training​sets, has an ordering cost of ​$45 for the​ BB-1 set​ (BB-1 stands fo
andrew-mc [135]

Answer:

839.216

Explanation:

For we to calculate the total cost, we use the following

Total Cost = Carrying Cost + Stock out Cost

= 0+ $45 x 4 x [.2(100-80)+.2(120-80)+.1(140-80)] = 1368*

Now

Total Cost = Carrying Cost + stock out Cost

Total cost= [10 x 20]+40 x 4 x [.2990-50-20)+.1(110-50-20)]

Total cost = 200-1115.216+4

Total cost = 839.216

8 0
3 years ago
The listing and selling brokers agree to split a 7% commission fifty-fifty on a $96,900 lot sale. The listing broker is on a 30%
Sergio039 [100]

Answer:

1,187.03

Explanation:

he listing and selling broker each get 50% of the 7 5 commission.

The commission equal  7/100 x $96,900

Each broker gets   =3,391.5

The selling broker (broker working with the buyer) get 35 % of  3,391.5

=35/100 x 3,391.5

=1,187.025

=1,187.03

5 0
3 years ago
g You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. If the inflation rate is 1.09%, by how
gayaneshka [121]

Answer:

Real purchasing power increase= 2.16%

Explanation:

Giving the following information:

You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.

In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.

The inflation rate decreases the purchasing power of nominal income.

Real purchasing power increase= annual interest rate - inflation rate

Real purchasing power increase= 3.25 - 1.09= 2.16%

6 0
3 years ago
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