The statement above is FALSE.
A stock with a beta equal to -1 does not have zero systematic risk.
Systematic risk refers to the uncertainty that is inherent to the entire stock market segment; it is made up majorly of the daily fluctuations in the price of stocks. Beta is the measure of the systematic risk of a stock in comparison to the market as a whole. Beta is also used to compare a stock market risk to that of other stocks.
A stock with a beta value of -1 indicates that the stock price will be less volatile than the market. A stock with a beta value of 1 indicates that the stock price will move with the market.
Answer:
The correct answer is b. Grit.
Explanation:
On many occasions, the main enemies of our dreams inhabit ourselves: conformism, apathy, disappointment and resignation. Many dreams lack planning, money, time and personal conviction about one's own abilities. All this goes against the entrepreneurial mindset.
Answer:
$65,742.60
Explanation:
Note: The full question is <em>"Peter wishes to create a retirement fund from which he can draw $20,000 when he retires and the same amount at each anniversary of his retirement for 10 years. He plans to retire 20 years from now. What investment need he make today if he can get a return of 5% per year, com- pounded annually?"</em>
At first, we need to find the PV of withdrawals and there are 11 withdrawals starting 20 years from now.
PV = PMT/r * 1 - 1/(1+r)^n. This formula gives the PV one period before the first withdrawal. That is 19 years from now because the first withdrawal is 20 years from now.
PMT = 20,000, n = 11,
r = 0.05
PV19 = 20,000/0.05 * [1 - 1/(1+0.05)^11]
PV19 = 400,000 * 0.4153207109
PV19 = 166,128.28436
Now, we need to discount this back to toda
PV0 = PV19/(1 + r)^n; n = 19, r = 0.05
PV0 = 166,128.28436/(1 + 0.05)^1
PV0 = $65,742.6033421702
PV0 = $65,742.60
So, Peter needs to make $65,742.60 today.
Answer:
Number of caramels = 20
number cremes = 30 - 20 = 10
Explanation:
Data provided in the question:
Selling cost of each box = $12.50
Number of pieces of candies held in a box = 30
Cost of producing caramel = $0.25
Cost of producing cremes = $0.45
Now,
let the number of caramels be 'x'
Thus,
Number of cremes = 30 - x
Profit = Selling price - Cost
3 = $12.50 - [ 0.25x + 0.45(30 - x) ]
or
[ 0.25x + 0.45(30 - x) ] = 12.50 - 3
or
0.25x + 13.5 - 0.45x = 9.50
or
-0.20x = 9.50 - 13.5
or
-0.20x = - 4
or
x = 20
Hence,
Number of caramels = 20
number cremes = 30 - 20 = 10
Inflation is the economic condition in which the interest rate keeps increasing which is beneficial for the lenders. But not a fixed rate lender.
<h3 /><h3>What is Interest Rate?</h3>
Interest rate is the prevailing market rate which the lender of the money gets in return for the money provided as a loan.
If there is a fixed interest contract the lender will get the same percentage of return for the duration of contract, no matter the fluctuation of the interest rate in the market. This is not beneficial when the economy is facing inflation. As whatever be the rate in the market (definitely higher) the lender will get the same percentage of return.
However if there is a variable rate contract the rate is updated and the lender is paid at the updated interest rate. This is beneficial when the economy is facing inflation.
Learn more about interest rates at brainly.com/question/28142837
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