Yes she excessive debt because lets get one thing straight why does she have to pay monthly for furniture!
We have to pay for the property if you believe its market risk is the same as the market portfolio’s.
Explanation:
CAPM(Capital Asset Pricing Model) Formula:
We know the risk-free price, return on the market, so beta (as risk on the market is the same as risk in the portfolio, beta is one) so we are trying to plug all the values in order to achieve the expected return of this investment.
We already know that we will get annually, so use the perpetuity formula:
Answer:
B. Producing 50 shoes using resources that cost $25
Explanation:
Productivity is described as a measure of efficiency. An increase in efficiency results in an increase in productivity. Productivity is the efficient use of resources. It is the ability to give more output using fewer resources.
An increase in productivity is an increase in production using proportionate fewer resources. In this case, producing 50 shoes with resources of $25 is the most efficient way of using resources from the list produced.
Answer:
The return on stock XYZ is 3.2
Explanation:
The expected return on a stock whose returns differ based on different scenarios can be calculated by multiplying the return in a scenario by the probability of that scenario and taking a sum of all such scenario returns after they have been multiplied by their respective probabilities.
The formula can be written as,
Return on a stock = rA * pA + rB * pB + ... + rN * pN
Where,
- r represents the scenario returns
- p represents the probability of scenarios
Probability of normal state (x) = 1 - (0.15 + 0.1 + 0.2) = 0.55
Return on stock XYZ = 0.35 * 0.15 + 0.08 * 0.55 + 0.01 * 0.1 + (-0.33) * 0.2
Return on stock XYZ = 0.0315 or 3.15% rounded off to 3.2%
b. They come from socially transmitted information.
Explanation:
Informal institutions -
- Socially shared information and rules
- social rules of informal institutions are usually unwritten rules
- social rules are created, communicated, enforced informal channels.
- do not depend on monitoring by external authority