Answer:
Asset U
Explanation:
Reward-to-volatility ratio for Asset Q = Expected return / standard deviation
Reward-to-volatility ratio for Asset Q = 6.5% / 5.5%
Reward-to-volatility ratio for Asset Q = 1.1818
Reward-to-volatility ratio for Asset U = Expected return / standard deviation
Reward-to-volatility ratio for Asset U = 8.8% / 5.5%
Reward-to-volatility ratio for Asset U = 1.6
Reward-to-volatility ratio for Asset B = Expected return / standard deviation
Reward-to-volatility ratio for Asset B = 8.8% / 6.5%
Reward-to-volatility ratio for Asset B = 1.3538
The investor should prefer Asset U because its has the highest reward to volatility ratio among the three options.
The following apply:
1. Better quality of goods and services.
2. Improved customers services.
3. More variety of goods and services.
There are some benefits that customers derived from competition. Parts of the benefits are listed above. Competition encourages businesses to improve the quality of their products and services and place reasonable prices on their products.
It would be an increase of $6.000 as <span>the effect in net income ($15 selling price less $13 variable cost (the original $12 plus the $1 shipping cost)) or $2 per scale. </span>
Answer:
Range of price elasticity of demand for cigarettes is from (-0.5) to (-0.3).
Explanation:
Percentage increase in price = 10%
Percentage reduction in quantity demanded = 3% to 5%
We are taking percentage change in the quantity demanded is equal to 3% for now.
Initial price elasticity of demand for cigarettes:
= Percentage change in quantity demanded ÷ Percentage change in price
= -3 ÷ 10
= -0.3
Now, we are taking percentage change in the quantity demanded is equal to 5%.
price elasticity of demand cigarettes:
= Percentage change in quantity demanded ÷ Percentage change in price
= -5 ÷ 10
= -0.5
Therefore, the range of price elasticity of demand for cigarettes is from (-0.5) to (-0.3).
Answer:
B) (I) is false, (II) true.
Explanation:
Even though short term rates (Treasury bills) are much more volatile than long term rates (Treasury bonds), it is normal that the rate of return on Treasury bills is lower than the rate of return on Treasury bonds. Some of the reasons why Treasury bills have such a low rate of return is that they are very liquid investments and they don't pay any periodic interest.