Answer:A. 5 to 10%
Explanation: A smoothing constant is categorised into three the alpha beta and gamma smoothing constants.
The smoothing constant is variable that is used in time series analysis According to exponential smoothing.
The smoothing constants help to determine how the historical series values are weighed.
THE SMOOTHING CONSTANTS ARE USED IN FORCASTING AS THEY HELP TO ENSURE EFFICIENT FORCASTS.
Answer:
A) Both the present value and future value would increase.
Explanation:
If the compounding frequency increases, then both the present value and the future value will increase because the effective annual rate will increase. E.g. interest used to be compounded every 6 months, now it is compounded monthly.
Both the present value and the future value vary jointly, if the present value decreases, then the future value will also decrease, and vice versa.
Explanation:
Debt ratio is basically the ratio between the total debts and the total assets of a company. It shows the percentage of total debts of the company in accordance or in comparison of the total assets. If the debt ratio is high, it means the company has more liabilities than the assets. Higher debt ratio may lead a company towards default.
In this question, 101.5% debt ratio means the total liabilities of the company are 1.5% more than the total assets of the company. This shows that the company's debt ratio is high. Liabilities are more than the assets. In this situation, a company is considered at a risk if precautionary measures are not taken immediately.
Answer:
19.50%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For Stock R
= 3% + 2.5 × (13% - 3%)
= 3% + 2.5 × 10%
= 3% + 25%
= 28.00%
For Stock S
= 3% + 0.55 × (13% - 3%)
= 3% + 0.55 × 10%
= 3% + 5.5%
= 8.50%
The difference would be
= 28% - 8.5%
= 19.50%
Answer: b. it's profitable in the short run for another member to increase production.
Explanation:
This refers to an oligopolistic market where there are few producers of a good. These producers can come together to create a cartel that fixes prices for the goods and services they produce.
If they agree to cut back production, this will have the effect of increasing prices due to a reduction in supply. If a member decides to increase production, they would enjoy profits in the short term from the increased prices.
The other members would however respond by increasing production as well so those profits would stop towards the long run.
