Answer:
Change in demand by a smaller percentage compared to percentage change in price.
Explanation:
As demand is inelastic, a rise in price will not have an immense effect on the quantity demanded as consumers are not sensitive to the demand due to inelasticity.
Answer:
C. A stock's beta can be calculated by comparing its returns to the market's returns over some time period because the beta coefficient measures a stock's volatility relative to market.
Explanation:
A stock`s beta is a risk assessment metric that is used to measure the volatility of a security in relation to the market. The metric compares the risk of an investment with the average market risk of that investment.
Since stock`s beta measures market risk in relation to the security, it can be calculated by comparing its returns to the market`s returns over some time period which gives beta coefficient as a result.
If beta coefficient is above 1, it means the volatility of the security is high. If it`s 1, it means the security risk equals the market risk. If it is below 1, it means the security risk is less than the market risk.
Other options are wrong.
Option A is wrong because security`beta measures security risk in relation to the market, not other securities. Option B is wrong because stock`s beta is more relevant to an investor with well-diversified portfolio to measure risks across market.
Option D is wrong because returns can be negatively correlated without any of the firm having negative beta
Option E is wrong because holding an individual stock is always riskier than combining stocks in a portfolio.
So only option C is right as described above.
Answer:
"Actions To Take"
Check my records first
Contact the bank right away
Handle the matter quickly
"Actions To Avoid"
Set the note aside and wait until later
This is True!
I mean how else are people going to survive? If the population grows, then the country should try to grow to fit its needs.
Answer:
Cost of goods sold to be overstated and net income to be understated.
Explanation:
Ending Inventory are<em> deducted</em> from the cost of sales figure to reach the gross profit amount in the trading account.
Understatement of Inventory means that Cost of goods sold will overstated and gross profit understated, consequently, net income will be also understated.
