Answer:
$325,000
Explanation:
Given that,
Total variable costs = $219,600
Total fixed costs = $126,750
Total revenues = $360,000
Required sales in dollars to break even:
= [Total fixed cost ÷ (Total revenues - Total variable costs)] × Total revenues
= [$126,750 ÷ ($360,000 - $219,600)] × $360,000
= ($126,750 ÷ $140,400) × $360,000
= 0.9028 × $360,000
= $325,000
Explanation:
A. Since a Canadian employee can make two cars or 30 cars of wheat each year, a car's opportunity costs 15 cars of wheat. In the same way, the cost of a wheat bushel is one quarter of a vehicle. The cost of the opportunity is the mutual costs.
B. When all 10 million workers are producing two cars each, a total of 20 million cars is produced, which means that the production opportunities are intercepted vertically. For every 10 million employees produce 30 bushels of wheat each, the horizontal interception between output possibilities is a total of 300 million bushels. Although the trade is still the same between cars and wheat, development incentives are a straight line.
C. When Canada continues to import 10 million vehicles in Canada by the US, It will have to manufacture a minimum of 20 million cars. Thus Canada produces the production opportunities at the vertical dispatch. However Canada will be able to consume 200 million bushels of wheat and 10 million cars if its vehicles are 20 bushels of wheat per car. The offer should be accepted by Canada.
Answer:
The portfolio beta is 1.048.
Explanation:
The portfolio beta is the measure of systematic risk for the whole portfolio. It is made up of the weighted average of the individual stock betas that form up the portfolio.
The weightage of stocks in portfolio is determined by the investments in stock as a proportion of total investment in the portfolio. The formula for portfolio beta is,
p Beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
The investment in Con Edison = 50000 - 12000 - 20000 = 18000
Using the above formula, we calculate the portfolio beta to be,
p Beta = 20000/50000 * 1.3 + 12000/50000 * 1 + 18000/50000 * 0.8
p Beta = 1.048
A hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, the hedge fund is speculating.
<h3>What is a hedge fund?</h3>
It should be noted that the hedge fund simply means a pooled investment fund which trades in liquid assets. This is usually managed by the professional fund managers.
Therefore, a hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, the hedge fund is speculating.
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Answer:
When nominal interest rates cannot be lowered any further.
Explanation:
A liquidity trap occurs when Central Banks fails in its injection of cash into the private banking system to decrease interest rates.
This results in households and businesses maintaining high cash balances and not stimualting aggregate demand.