Answer:
The correct answer is option b.
Explanation:
When foreign producers sell their goods and services in the US market they get US dollars in return. They use these dollars to buy goods and services from the US.
If import restrictions prohibit foreigners from selling various goods and services in the U.S. market, foreigners will have fewer U.S. dollars which they can spend to buy U.S. goods and services. So they will be able to purchase fewer goods and services from the US.
Answer:
5%
Explanation:
stock's Alpha = R - Rf - beta (Rm - Rf)
- R represents the stock's return = $6/$25 = 24%
- Rf = 6%
- Beta = 1.3
- Rm = 16%
Alpha = 0.24 - 0.06 - 1.3 (0.1) = 0.24 - 0.06 - 0.13 = 0.24 - 0.19 = 0.05 = 5%
A stock's Alpha is basically the excess return that the stock yields compared to an specific benchmark, e.g. S&P 500, Dow Jones.
Answer:
E. Invest in mutual funds.
Explanation:
Individual investors tend to have relatively small portfolios and are usually unable to realize economies of size. The best strategy is to pool funds with other small investors and allow professional managers to invest the funds. Here, a fund manager is hired to invest the cash the investors have contributed, and the fund manager's goal depends on the type of fund; a fixed-income fund manager, for example, would strive to provide the highest yield at the lowest risk.
Answer:
<em>The answer will be 136.11
</em>
Explanation:
Because since the cost of the basket in 2005 is = (3x20) + (4 x 12) = 108; And the cost of basket in 2006 is = (3x25) + (4 x 18) = 147
To calculate the CPI,
- <em>Put a sampling of product prices from a previous year. </em>
- <em>Then, put the current prices of the same items together. </em>
- <em>Divide the current total prices by the old prices and then subtract the sum by 100.</em>
The Consumer Price Index (CPI) for 2006 = <em>(147/108) x 100 = 136.11</em>
