Answer:
it means you can understand what a person is feeling in a given moment, and understand why other people's actions made sense to them. Empathy helps us to communicate our ideas in a way that makes sense to others, and it helps us understand others when they communicate with us.
<u>Full question:</u>
You know that firm XYZ is very poorly run. On a scale of 1 (worst) to 10 (best), you would give it a score of 3. The market consensus evaluation is that the management score is only 2. Should you buy or sell the stock?
A. Buy
B. Sell
<u>Answer:</u>
Buy the stock
<u>Explanation:</u>
At any position in time, the stock price displays all candidly accessible erudition about the company. This implies that an investor can obtain abnormal returns only if that investor holds private erudition about the firm's forecasts.
The firm's administration is not as critical as everyone else considers it to be, hence, the firm is underestimated by the market. You are scarcely hopeless about the firm's probabilities than the assumptions constructed into the stock price. As the administration of the firm is not as weak as anticipated to be. So the investor will determine to buy the stocks of the firm.
Answer:
5.39%
Explanation:
Given that,
Bond that pays interest annually yields a rate of return = 7.50 percent
Inflation rate for the same period = 2 percent
Real rate = [(1 + nominal rate) ÷ (1 + inflation rate)] - 1
Real rate = [(1 + 0.0750) ÷ (1 + 0.02)] - 1
= (1.075 ÷ 1.02) - 1
= 1.0539 - 1
= 0.0539 or 5.39%
Therefore, the real rate of return on this bond is 5.39%.
