<span>It is believed to be factual or true by most people.</span>
Historical returns have generally been higher for stocks of small firms as (than) for stocks of large firms.
<h3>What is
stocks?</h3>
Stock in finance refers to the shares into which a corporation or company's ownership is divided. A single share of stock represents fractional ownership of the firm based on the total number of shares.
A stock is a type of instrument that implies the holder owns a share of the issuing firm and is typically traded on stock markets. Corporations issue stock in order to raise funds to run their enterprises. Stock is classified into two types: common and preferred.
Stocks are ownership stakes in a publicly traded corporation. When you purchase stock in a corporation, you become a part-owner of that company. If a corporation has 100,000 shares and you purchase 1,000 of them, you own 1% of the company.
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Answer:
e. increase as the probability of a boom economy increases.
Explanation:
The most economic growth occurs when the economy is in boom state. This results in the highest rate of return on investments compared to all other states such as normal, recession. In this case, if the probability of boom economy increases, stock S will have an overall increase in expected return; it means that there is higher chance of earning 12% return which is the highest among those in other economy states. This makes choice E correct.
Answer: Yes, the firm should continue to produce in the short run as its revenues cover all of its total variable cost of $16,000.
Explanation:
Given that,
Produces = 3,000 units
Total cost = $36,000
Fixed cost of production = $20,000
price of each good = $10
Total cost = Total fixed cost + total variable cost
$36,000 = $20,000 + Total variable cost
Total variable cost = $36,000 - $20,000
= $16,000
Revenues = 3,000 units × price of each good
= 3,000 × $10
= $30,000
Yes, the firm should continue to produce in the short run as its revenues cover all of its total variable cost of $16,000.
Answer:
The correct answer is option C.
Explanation:
The GDP of an economy includes only the final goods and services produced in the economy in the given period of time.
In the given example , the day care shows the service provided by Jack and Jill.
The crayons and color books, milk, attendants are all intermediate goods and services.
So their values will not be included in the GDP.
The GDP will only include the value of daycare sold which is $100,000.