Answer: A. The island of Atlantis has an increasing opportunity cost of producing potatoes and the production possibility frontier is bowed outward.
Explanation:
When there is an increasing opportunity cost of producing a good, the Production Possibilities Frontier (PPF) will be bowed out to represent that as more of the good is being produced, more of another good is being given up to do so.
For the island of Atlantis therefore, as they produce more of potatoes, they are giving up being able to produce whatever more and more of other goods they produce which is therefore leading to a PPF that is bowed outward.
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Answer:
The correct answer is: 1. Functional.
Explanation:
A functional strategy is one that requires the HOW? Do, operate, function, that is, after delimiting the corporate strategy that specifies what to do ?, the functional strategy, indicates how to apply and use resources to achieve what you want to achieve.
A functional area of the company adopts this type of strategy to achieve the objectives embodied in the strategy of the corporation, maximizing the resources available and their productivity. In addition, it seeks the care and development of functional and operational capacity in order to achieve a competitive advantage to the company.
These strategies generate a frame of reference used by the administration of operations and functions to support the organizational and business strategy.
Expected return of the stock is greater than 12%.
Using formula, Risk free rate + beta (market risk rate - risk free rate)\
= 2% + 2.0 (7%-2%)
= 13.6 - 0.4* risk premium
Risk premium of a stock is greater than 12%.
A stock's total return takes into account both capital gains and losses as well as dividend income, as opposed to a stock's nominal return, which only displays its price movement. In addition to considering the actual rate of return, investors should consider their ability to withstand the risk involved with a given investment. An investment's return on investment (ROI) provides a general indication of its profitability. The return on investment (ROI) is calculated by subtracting the investment's initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.
Note that the full question is:
If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the stock?
A. less than 12%.
B. 12%.
C. greater than 12%.
D. cannot be determined.
To learn more about returns: brainly.com/question/24301559
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