Answer:
-1.48
<u>Inferior Good,</u> as their quantity demanded decreases as the income of the consumers increases.
C. Greater than 1
As to be a normal good, the income elasticity should be positive. Then, when betwene 0 and 1 this is a necessary good used for the consumer to met their normal living standard
While above 1, menas their expense is more than proportional than income thus, it increases as the income increases more than proportionally that represent a luxury good.
Explanation:
To solve for the income elasticity we divide the variation in quantity over the variation in price:
-37/25 = -1.48
Answer:
32.03%
Explanation:
The computation of the standard deviation is as follows;
As we know that
Average return = Total return ÷Total time period
= (32 + 24 - 48 + 12 - 9) ÷ 5
= 2.2%
Now
Return (Return - Average Return)^2
32 (32 - 2.2)^2 = 888.04
24 (24 - 2.2)^2 = 475.24
-48 (- 48 - 2.2)^2 = 2520.04
12 (12 - 2.2)^2 = 96.04
-9 (-9 - 2.2)^2 = 125.44
Total = 4104.8%
Now
Standard deviation is
= [Total (Return - Average Return)^2 ÷ (Time period- 1)]^(1 ÷ 2)
= [4104.8 ÷ (5 - 1)]^(1 ÷ 2)
= [4104.8 ÷ 4]^(1 ÷ 2)
= 32.03%
Answer:
The correct answer is
: Yes, the offer was revoked by Katherine.
Explanation:
Even if Paul replied Katherine with the acceptance to the first offer, he used a different means of communication to do that -<em>e-mail v. mail</em>. In addition, Katherine sent the revoke by mail -<em>as in the initial offer</em>- before Paul sent his e-mail. So, there is enough proof on Katherine's end that she didn't want to proceed with the offer before Paul confirmed his agreement on the terms. In that sense, Katherine did revoke the initial order.
Answer:
The beta of the other stock or stock B is 2.34
Explanation:
The beta of the portfolio is the weighted average of the individual stock betas that form up the portfolio. To calculate the beta for the portfolio, we use the following formula,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w represents the weight of each stock in the portfolio
As the portfolio is equally as risky as the market, the portfolio beta is assumed to be the same as that of the market and the beta is 1.
The beta is the measure of systematic risk and a risk free asset does not have risk and has a beta of 0.
To calculate the Beta of stock B in the portfolio, we simply put the available values in the formula for the portfolio beta,
1 = 1/3 * 0 + 1/3 * 0.66 + 1/3 * Beta of B
1 = 0 + 0.22 + 1/3 * Beta of B
1 - 0.22 = 1/3 * Beta of B
0.78 * 3 = 1 * Beta of B
2.34 = Beta of B
Thus, the beta of the other stock or stock B is 2.34
Answer:
<em>We must drive 8,553 miles to pay off the extra cost of the diesel engine</em>
Explanation:
Let's use simple logic and put the numbers in it to solve this problem. Each gallon of diesel fuel gives us 32 miles and each gallon of gasoline gives us 23 miles. On the other side, each gallon of diesel costs $3.54. That means to get 32 miles we have to spend $3.54, thus each mile costs $3.54/32=$0.11 when using diesel.
Each gallon of gasoline costs $3.69, it means each mile costs $3.69/23=$0.16 when using gasoline. The difference
$0.16-$0.11=$0.05 are the savings per mile when using diesel instead of gasoline. Since the diesel engine is $427.65 more expensive than the gasoline engine, we must drive $427,65/0.05=8,553 miles to pay off the extra cost of the diesel engine.
