Answer:
The performance of John and the benchmark is not correct. since John's portfolio consists of high risk binds and small cap stocks, it is not seen as a good practice in making a portfolio of small cap stocks as a benchmark
Explanation:
Solution
From the given question, my opinion towards the performance of John's is that he's claim is wrong.
The benchmark portfolio should be a good approximation of the filed/sector of your portfolio. Since the John's portfolio comprises of small cap stocks and high-risk bonds, it is not a good standard practice to make a portfolio of small cap stocks as benchmark.
The correct answer should be an increase in quantity supplied and an increase in price. Since people want it, it will be provided more. It's supply and demand, the more you have a need for something the more will be produced, and vice versa. Of course, the owners will use the situation to earn a lot because people will want to buy it so the price will probably go up too.
Answer:
Negative cash balance of $210,000.
Explanation:
Given that,
cost of equipment = $200,000
Inventory purchased = $12,500
Cash balance = $2,000
Accounts payable = $4,500
Net cash flow at time zero:
= (cost of equipment) + (Increase in working capital)
= ($200,000) + (Inventory purchased + cash balance - Accounts payable)
= ($200,000) + ($12,500 + $2,000 - $4,500)
= ($200,000) + ($10,000)
= ($210,000)
Note: Negative values are in the parenthesis.
Answer:
a. Trade can make every person better off.
Explanation:
Trade generates a benefit for all parties trading. If a party do not fell like winning with trade, it will stop trading and the trade will not occur. It is important for each party to make sure the other wants to keep trading, so quantity and price will be based upon both parties agreement.
A person can trade for product she produces, for example a person who produce a certain fruit can buy the same fruit when is off-station in their side of the world with another producer.
It could also trade becasue is the raw material of a finished product and it need more input for his facilities.
If a person or a party who is trading thinks is worse than before the trade, then it will stop trading so, as long as there is trade, both parties are better off after the trade.
Answer:
Rights
Explanation:
According to Wikipedia, Rights are legal, social, or ethical principles of freedom or entitlement; that is, rights are the fundamental normative rules about what is allowed of people or owed to people, according to some legal system, social convention, or ethical theory. So for the manager to emphasize the importance of making decisions consistent with fundamental liberties and privileges, he needs to focus his teaching of RIGHTS because it gives them insight.