Answer:
depends on the disability
Explanation:
depending on what kind of disability they have, people with disabilities cant do certain things
Answer:
expected return on market = 0.10373 or 10.373%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the market risk premium
We will first calculate the market risk premium using the required rate of return for stock, beta and risk free rate and plugging these values in the formula above.
0.1330 = 0.058 + 1.64 * rpM
0.1330 - 0.058 = 1.64 *rpM
0.075 = 1.64 * rpM
rpM = 0.075 / 1.64
rpM = 0.04573 or 4.573%
As we know that the beta for market is always equal to 1, we can calculate the rate of return for market as,
expected return on market = 0.058 + 1 * 0.04573
expected return on market = 0.10373 or 10.373%
Answer:
Kevin has analyzed the situation well. However, he should also consider the fact that he saved $10 by only purchasing the shirt.
Opportunity cost is the cost of the forgone alternative. Out of the 3 choices, he only purchased 1 of the choices, the opportunity cost are the other two choices. However, he is still capable of buying the flip-flops costing $10 but he chose not to do so. He should consider it as a savings aside from it being a lost opportunity.
Answer:
b. cannot test his theory because his observations violate the ceteris paribus assumption
Explanation:
As per the law of supply, when price of an input rises, quantity supplied of a good falls, keeping other factors affecting supply as constant (ceteris paribus).
Leather and Shoes are complimentary goods in the sense that leather serves as an input for the product i.e shoes. So if the price of leather rises, production of shoes would fall, keeping other factors constant.
When the price of an input rises, the quantity supplied falls, keeping other factors affecting supply as constant.
In the given case, the price of inputs has increased and yet the production of shoes has increased owing to an advancement in the technology. Technology is a different determinant of quantity supplied and considered as an other factor affecting supply.
