Answer:
B) higher in the computer industry
Explanation:
Two industries are given: computer and shoe industry.
it is given in the question that the computer industry is more capital intensive than the shoe industry. which means that the computer industry involves more investment than the shoe industry. Hence, if we calculate the capital and labor ratio then we get a high capital ratio for the computer industry because it includes high investment than shoe industry
Answer:
Because of product's use of natural resources in its input (1) and dependence on the supply chain system of other companies.
Explanation:
The reason is that all of the companies rely on natural resources that the companies are processing and making it available for the other companies to utilize it to control its cost and complete the production of the products. The energy is a natural resource which every company utilizes and due to this its production is largely dependent on the firms that are processing natural resources to make it available for companies to utilize it.
The next most important thing is supply chain system of natural resource companies that helps the companies like AEC and even an individual to make the use of these natural resources in an efficient and effective manner. If I don't have access to fuel, then I cann't travel and traveling by using horses would be expensive and time consuming. So supply chain system of the other businesses play key role here.
Answer:
MPC = 0.75
Explanation:
Marginal Propensity to Consume (MPC) is a part of Keynesian macroeconomic theory and is calculated by the change in consumption divided by the change in income. It quantifies the increased consumption which occurs with an increase in disposable income
Answer:
Two ways: using VIX futures and traded notes or S&P 500 options and neutral investment strategies.
Explanation:
Volatility is a market's tendency to rise or fall sharply within short periods of time. It is usually measured using standard deviation or return on investment. There are several ways to handle market volatility. One is to use exchange-traded instruments, such as VIX future contracts and exchange traded notes. VIX provides real time estimations of greed and fear levels, as well as volatility expectations in the next 30 sessions. The other way is to use S&P 500 options and delta-neural strategies.
Answer:
Hersey's bond = $1125.513
Mars bond = $1172.259
Explanation:
Hersey bond;
Period(t) = 10years = 40(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
Using the both present value (PV) and compound interest formula ;
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-40)÷0.025] + [1000÷(1.025)^40]
PV =( 753.083251562) + (372.4306236)
PV = $1125.513
Mars bond;
Period(t) = 20years = 80(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-80)÷0.025] + [1000÷(1.025)^80]
PV =(1033.55451663) + (138.704569467)
PV = $1172.259
