All categories

4 years ago

Which of the following is correct?

Business

1 answer:

PtichkaEL [24]4 years ago

5 0

Answer:

C. The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.

Explanation:

The unemployment rate is a determinant in the country's standard of living because this phenomenon derives in loss of income in the families, that at the same time reflects in a decrease of the spending power and this also can result in an increase in the debt problems which they don't have enough to pay.

On the other hand, in complex economies, unemployment is measured in 5 ways: cyclical, structural, seasonal, frictional and institutional. Some of these types could reach 0 but others will remain so it would be inevitable to have some degree of unemployment.

You might be interested in

Assume that the CAPM holds. One stock has an expected return of 8% and a beta of 0.5. Another stock has an expected return of 13

Zolol [24]

Answer:

10.5%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For one stock

8% = Risk-free rate of return + 0.5 × (Market rate of return - Risk-free rate of return)

8% = Risk-free rate of return + 0.5 × Market rate of return - 0.5 × Risk-free rate of return

8% = 0.5 × Risk-free rate of return + 0.5 × Market rate of return

8% ÷ 0.5 = Risk-free rate of return + Market rate of return

So, Risk-free rate of return + Market rate of return = 16

Risk-free rate of return = 16 - Market rate of return - 1

For another stock

13% = Risk-free rate of return + 1.5 × (Market rate of return - Risk-free rate of return)

13% = Risk-free rate of return + 1.5 × Market rate of return - 1.5 × Risk-free rate of return

13% = - 0.5 × Risk-free rate of return + 1.5 × Market rate of return - 2

Now put these equations together

13% = - 0.5 × (16 - Market rate of return) + 1.5 × Market rate of return

13% = - 8 + 0.5 × Market rate of return + 1.5 × Market rate of return

So, Market rate of return would be

= 21 ÷ 2

= 10.5%

4 0

3 years ago

A city starts a solid waste landfill during 2017. When the landfill was opened the city estimated that it would fill to capacity

Allushta [10]

Answer:

The interpretation of the particular question is outlined in the following segment on the clarification.

Explanation:

The facility was indeed 20 percent full by either the end of December 2017 therefore the 3,00,000 would still have been recognized as an expenditure.

The facility also seems to be 45 percent complete at either the end of 2018, meaning that the 3,75,000 will have been accepted as expenditures,

⇒ $1,500,000\times (45 \ percent-20 \ percent)$

By most of the end of the decade, the financial sheet provides a snapshot 6,75,000 although this debt would be,

⇒ $1,500,000\times 45 \ percent$

So 3,75,000 should have been shown as the cost of the rest in the financial information for 2018, as well as 6,75,000 would have been shown as contractual obligations.

6 0

3 years ago

Question Content AreaKate is considering an investment in a retail shopping mall. The initial investment is $630,000. She expect

pshichka [43]

The payback period of making an investment in a retail shopping mall is 7 years.

Option A is the correct answer.

<h3>What is a payback period?</h3>

A payback period is one of the techniques of capital budgeting that tells about how much time the investment amount got recovered by the company.

Given values:

Cost of investment: $630,000

Yearly cash flows: $90,000

Computation of payback period of the retail investment:

$\rm\ Payback \rm\ Period=\frac{\rm\ Cost \rm\ of \rm\ Investment}{\rm\ Yearly \rm\ Cash \rm\ flows} \\\rm\ Payback \rm\ Period=\frac{\$630,000}{\$90,000} \\\rm\ Payback \rm\ Period=7\rm\ years$

Therefore, when the retail investment of $630,000 made with annual cash flows of $90,000 provides a payback period of 7 years.

Learn more about the payback period in the related link:

brainly.com/question/16255939

#SPJ1

5 0

2 years ago

For which rate of inflation given below will the real interest rate be higher than the nominal interest rate?

Olin [163]

Amoreandrusamoreandrus

5 0

3 years ago

Rank the volumetric energy density (J/L) of the following transportation fuels from low to high (1= lowest and 4 = highest). Hin

algol13

Answer:

Explanation: Volumetric energy density is the calculation of how much energy is contained in a system compared to its volume expressed in Megajoules per liter.

Listed below are transport fuels from lowest to highest:

1. Compressed natural gas - 9MJ/L

2. Ethanol - 24MJ/L

3. Gasoline - 34.2 MJ/L

4. Diesel - 38MJ/L

4 0

4 years ago