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AlladinOne [14]
3 years ago
7

__________ refers to the investment that shareholders make in a company that cannot be recovered if the company fails and goes b

ankrupt. __________ refers to the investment that shareholders make in a company that cannot be recovered if the company fails and goes bankrupt.
Business
1 answer:
photoshop1234 [79]3 years ago
5 0

Answer:

<em>Risk capital</em>

Explanation:

Risk capital <em>relates to funds allocated to risky operation and used to invest heavy-risk, elevated-reward.</em>

Diversification is key to a successful risk capital investment, because the prospects of each investment appear to be undetermined in nature, although the yields may be far above average when an investment is successful.

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Consider two perfectly negatively correlated risky securities, X and Y. Security X has an expected rate of return of 9% and a st
Aneli [31]

Answer:

0.41

Explanation:

The computation of the weight of security Y in the minimum variance portfolio is shown below:-

Weight of security X = Standard deviation of security Y ÷ (Sum of the standard deviation of securities)

= 39% ÷ (39% + 27%)

= 39% ÷ 66%

= 59.01%

Weight of security Y = 1 - Weight of security X

= 1 - 59.01%

= 0.41

5 0
2 years ago
Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in 2009. If 4 apples were produc
maksim [4K]

Answer:

B) 1.7

Explanation:

GDP deflator simply shows the occurring event of the level of prices in the economy which is why It is often the ratio of nominal GDP to real GDP.

GDP deflator in 2009 will be:

Norminal GDP

Cost of apple= $1 in 2009

Apple produced =5 in 2009

Cost of oranges= $1.50 in 2009.

Orange produce= 5 in 2009

$1.00*(5)+$1.50*(5)

=5+7.5

=$12.50

Real GDP

Cost of apple= $0.50 in 2002

Apple produced =5 in 2002

Cost of oranges= $1 in 2002

Orange produce= 5 in 2002

0.50*(5)+$1.00*(5)

=2.5+5

=$7.50

GDP deflator = Nominal GDP/Real GDP)

=$12.50/$7.50

=1.666

approximately 1.7

8 0
3 years ago
During a certain six-year period, the consumer price index (CPI) increased by 50%. But during the next six-year period, it incre
Westkost [7]

The answer is Inflation

7 0
3 years ago
Read 2 more answers
Keynesian economists believe: the economy ought to be left to market forces. government policies do not affect economic activity
jasenka [17]
Keynesian economists believe:  <span>government can implement policy proposals that can positively impact the economy

Keynesian economist generally believed that the Economic situation in a country is a direct result from both private and public sector activities simultaneously, so both positive and negative things could derive from both sectors</span>
5 0
3 years ago
The Pandemic has made chicken more expensive, in order to offset this effect to consumers, government subsidized the price of ch
Ira Lisetskai [31]

Answer:

The Pandemic has made chicken more expensive, in order to offset this effect to consumers, government subsidized the price of chickens by a per-unit subsidy. If it wants to study the substitution effect of this subsidy, the government should imposed a Lump-sum tax.

False

Explanation:

The government should have imposed a lump-sum subsidy if it really wanted to study the substitution effect of the subsidy instead of imposing a lump-sum tax.  This subsidy should be granted to chicken farmers to reduce their production costs, which will in turn reduce the cost of chicken to the consumers.  A lump-sum tax sounds like a contradictory effort to offset the high cost of chicken on the consumers.

6 0
2 years ago
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