Answer: Overconfidence bias
Explanation:
The options are:
a. overconfidence bias
b. hindsight bias
c. framing bias
d. escalation of commitment bias
e. sunk-cost bias
Overconfidence bias is when people or organization believe so much in their ability, knowledge, talent, or skills which invariably leads them to believe that they are better than the way they really are. It is an ego belief and can have a dangerous effect.
Ford was slow to recall vehicles to fix a possible carbon monoxide leak due to overconfidence bias as they believe that they are a force to be reckoned with and can't make such mistakes.
Answer:
d. the Circular Flow Model
Explanation:
Based on the information provided within the question it can be said that this statement is an example of the Circular Flow Model. This model (like mentioned in the question) illustrates the flow of cash from different people or company's in different industries. Where one person/company pays another, which takes it in as income and uses that to pay another company for what they need and so on.
Answer: The correct answer is "D. They earn identical rewards per unit of systematic risk.".
Explanation: If you are comparing 3 values and by calculating, find that they all have the same Treynor ratio means that they earn identical rewards per unit of systematic risk.
Answer:
5%
Explanation:
The applicable formula is A = P( 1 + r) ^ n
where A= amount: P is the principal, r, interest rate, n time
In this case,
A = principal + interest = Rs 410 { Rs 4000 + Rs410}
P= Rs 4000
r= ?
n= 2
r is?
4410 = 4000(1 + r) ^2
(1 + i)^ 2 = 4410/4000
(1 + i)^ 2 = 1.1025
1 + i = √1.1025
1 + i = 1.05
i = 1.05 - 1
i = 0.05
0.05 × 100 = 5%
Answer:
a.$75,508
Explanation:
Newham Corporation
Break Even Sales = Fixed Expenses/ 1- (Variable Expenses/ Sales)
We combined the Break Even Sales by adding the sales of the two products and the variable expenses of the two products.
Break Even Sales =$46,060/1-($10,780+$18,470/$31,000+ $44,000)
Break Even Sales =$46,060/1-(29250/75,000)
Break Even Sales =$46,060/ 1-0.39
Break Even Sales =$46,060/ 0.61
Break Even Sales = $75,508.19
