Answer:
0.681 and better
Explanation:
The formula to compute the Sharpe measure is shown below:
Sharpe ratio = (Portfolio return − Risk-free rate) ÷ (Standard deviation of portfolio return
)
= (17.5% - 3.2%) ÷ (21%)
= 0.681
Simply we deduct the risk free return from the portfolio return and divide it by the standard deviation of portfolio return
And the market Sharpe measure would be 0.31 and ours Sharpe measure would be 0.681 which reflect the better
Answer:
take a complex, real-world issue and simplify it down to its essentials.
Explanation:
A theory can be defined as a simplified but abstract representation that gives a detailed relationship about the interaction between two or more variables.
Generally, the main purpose of a theory is to take a complex, real-world issue and simplify it down to its essentials. Thus, in economics, a theory gives a detailed explanation and an understanding of issues such as inflation, recession, taxation, etc and any problem associated with them.
In order to test theories, economists usually make use of economical models such as the production possibility frontier (PPF), Mundell-Fleming model, Classical model, Keynesian IS/LM model, Solow growth model, etc.
An example of a natural monopoly found across the globe is power delivery.
Is electricity a natural monopoly?
- Electricity service grocery delivery retail store security driveway concrete repair Natural Monopolies.
- A natural monopoly exists when average costs continuously fall as the firm gets larger.
- An electric company is a classic example of a natural monopoly.
What are some examples of monopolies?
Natural gas, electricity companies, and other utility companies are examples of natural monopolies.
They exist as monopolies because the cost to enter the industry is high and new entrants are unable to provide the same services at lower prices and in quantities comparable to the existing firm.
Learn more about this here:
brainly.com/question/5372062
#SPJ4
Answer:
B. French wines will become more expensive in the United States.
Explanation:
Exchange rate is the rate at which one currency can be exchanged for another during international trade. The strength of a currency determines how much of the other countrie's goods it can purchase.
When the strength of a countrie's currency is high it will purchase more of the other countrie's goods. If however the currency is weak, it will take more to buy the other countrie's goods.
In this case if the dollar falls against the euro, it will take more dollars to buy French wine than before.
For example if a bottle of French wine was $500, after the fall the price may now be $800.
