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3 years ago

The _____ tells us that the expected return on a risky asset depends only on that asset's nondiversifiable risk.

Business

1 answer:

AVprozaik [17]3 years ago

7 0

Answer:

b. systematic risk principle

Explanation:

Here are the options to this question :

a. efficient markets hypothesis

b. systematic risk principle

c. open markets theorem

d. law of one price

e. principle of diversification

The systemic risk principle states that the expected return on an asset depends only on the systemic risks because diversification eliminates company specific risk.

Systemic risk is risk that cannot be eliminated by diversification.

Non systemic risk is risk that can be eliminated by diversification. it is risk peculiar to a company

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Which is not true of a perfectly competitive market? a. At the long-run equilibrium, economic profit is less than accounting pro

shtirl [24]

Answer:

B is the correct option.

Explanation:

In theory, the perfect market is the structure in which all the firms sell identical products,They all are price takers, the market share doesn't influence the prices, firms can enter or exit the market without cost and resources are perfectly mobile. No markets are in the sphere of the perfect competition model. so they are classified as imperfect. The imperfect and perfect market is the outcome of post-classical economic thought of the Cambridge tradition.

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3 years ago

By shutting down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou

wel

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period are paid at a later period. Thus option B is incorrect.

Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost. Hence option C is incorrect.

Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its sunk cost. Hence option D is incorrect.

Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

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3 years ago

Respond by (1) Identifying the type of syllogism below (Categorical, Disjunctive, Conditional) and (2) explain, in your own word

USPshnik [31]

The type of syllogism being used in the given sentence is a conditional syllogism.

<h3>What is Syllogism?</h3>

This refers to the use of reasoning in order to draw conclusions about something based on two premises.

Hence, we can see that conditional syllogism was used in the given premises and this is because it made use of either-or to show that if the sidewalk was wet, then that means that it must have rained.

This reasoning is faulty because there are different possible reasons for the sidewalk to be wet and not just rainfall.

Read more about syllogism here:
brainly.com/question/361872

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2 years ago

Kurt has 25/50/25 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a store

larisa86 [58]

Answer:

A. $25,000

B. $4,300

Explanation:

A. Calculation to determine What amount will the insurance company pay for the damages

Using this formula

Insurance payment=(Claim amount, Policy limit)

Let plug in the formula

Insurance payment= $25,000

Therefore the amount that the insurance company will pay for the damages is $25,000

B. Calculation to determine What amount will Kurt have to pay

Using this formula

Personal liability=Claim amount - Insurance payment

Let plug in the formula

Personal liability=($9,000 + $20,300) - $25,000

Personal liability=$29,300-$25,000

Personal liability=$4,300

Therefore Kurt have to pay $4,300

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3 years ago

Which research method involves manipulating a variable in order to determine how it affects another variable (in a cause and eff

Ipatiy [6.2K]

<span>The research method that involves manipulating a variable in order to determine how it affects another variable (in a cause and effect relationships) is the experimental method. In this method, the experimenter would undergo several processes and along the way, he would manipulate the variables in order to see how it affects the other variable thus uncovering the cause and effect relationships of these variables.</span>

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3 years ago