an example of overconfidence would be: Joe makes a stock price prediction and believes that there is only a 5% chance that his estimate is wrong; overlooking recent articles about the bad financial health of the business.
Buying stocks without any prior knowledge in finance would provide people with 50% rate of success. Good stock traders usually could improve their success rate up to 70% while success rate of 95% is very unlikely. Especially if the financial information showed a bad sign. The fact that Bill still put his money on the company's stock indicates that he is overconfident.
Answer:
4.16%
Explanation:
to calculate Singapore's economic growth rate we can use the future value formula (we could also use the rule of 72 but it is not very exact):
future value = present value x (1 + r) ⁿ
- future value = 900
- present value = 450
- n = 17
- r = ?
900 = 450 (1 + r)¹⁷
(1 + r)¹⁷ = 900 / 450 = 2
1 + r = ¹⁷√2 = 1.0416
r = 1.0416 - 1 = 0.0416 or 4.16%
Answer:
are making a large purchase.
Explanation:
A mortgage is a long term debt. It takes at least five years to repay a mortgage. In practice, mortgages are issues for between 10 and 30 years.
Mortgages are ideal for purchases requiring a colossal amount of money. For example, the purchase of homes, land, plants, and equipment. The repayment of the amount borrowed to facilitate such purchases is spread over many years. This enables the borrower to repay the loan in affordable monthly installments.
Answer:
If interest rates increase, the cost of borrowing money to build the factory becomes higher, so the returns from building the new plant may not be sufficient to cover the costs. Thus, higher interest rates make it less likely that Intel will build the new factory.
Answer:
c. $24,750
Explanation:
For computing the fixed cost first we have to determine the variable cost per hour by using high low method which is shown below:
Variable cost per hour = (High total cost - low total cost) ÷ (High desk manufactured - lower desk manufactured)
= ($86,625 - $49,500) ÷ (4,500 desk - 1,800 desk)
= $37,125 ÷ 2,700 desk
= $13.75
Now the fixed cost equal to
= High total cost - (High desk manufactured × Variable cost per hour)
= $ 86,625 - (4,500 desk × $13.75)
= $86,625 - $61,875
= $24,750
