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3 years ago

An increase in the riskiness of a particular security would not affect:______.

Business

1 answer:

kap26 [50]3 years ago

5 0

Answer:

Explanation:

Inflation is a persistent rise in general price level.

When inflation is expected, Investors ask for an increase in nominal interest rate in order to maintain the value of investments.

When a security becomes more risky, the chances of default of the security increases, so investors ask for an higher total return in order to compensate for the increased risk of default.

Risk premium increases with the increase in risk of a security

Investors are less willing to hold the bond because there is the risk that the security won't be able to make the contractual payments

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"Relevant costs for pricing decisions are full costs of the product." Do you agree? Explain. A. Yes, full costs of the produ

dedylja [7]

Answer:

Explanation:

depend on the scenario.. all costs that are directly related to that decision all relevant cost.

7 0

3 years ago

Two hundred people were asked if they had read a book in the last month. The accompanying contingency table, cross-classified by

Rainbow [258]

Question Continuation

The probability that a respondent read a book in the last month and is at least 30 years old is the closest to

A. 0.33

B. 0.88

C. 0.46

D. 0.12

See Attachment for complete question

Answer:

A. 0.33

Explanation:

To solve this question, we need the intersecting cell of Yes and 30+

$n(Yes\ n\ 30+) = 65$

The probability is then calculated as follows:

$P(Yes\ n\ 30+) = \frac{n(Yes\ n\ 30+)}{Total}$

Where Total = 200

$P(Yes\ n\ 30+) = \frac{65}{200}$

$P(Yes\ n\ 30+) = 0.325$

From the list of given options; (A) is the closest to 0.325

Hence:

Option A answers the question

3 0

3 years ago

The theme of a birthday party should always be based on a. the interests of the person throwing the party. b. the current trends

dexar [7]

The theme of a birthday party should always be based on (D. the interests of the guest of honor.

6 0

3 years ago

What is the total compound interest of a loan for $5000 with an annual interest rate of 8% at the end of a two-year period?

sukhopar [10]

Answer:

= $832s

Explanation:

CI = 5000*(1+8/100)^2

=5832 -5000

= $832s

There is a difference between the CI and SI. For SI principal remains the same each year. However, when we deal with CI then the new principal is the starting principal plus the interest. And that is the difference between the two. Also, the formula hence for CI is:

CI= P(1 +R/100)^N -P

SI= PRT/100

4 0

3 years ago

Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $44 per part plus anot

Fiesta28 [93]

Answer:

Redbud Company

A) Relevant costs:

B) Direct labor

C) Direct material

D) Variable overhead

F) New manager's salary

B) B) Redbud is indifferent about the decision.

C. Other factors to consider:

B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.

C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.

Explanation:

a) Data and Calculations:

Cost of buying parts from outside supplier = $50 per part

Units required in the next year = 10,000

Costs required to produce internally:

Supervisor's salaries $40,000

Direct material $ 28

Direct labor 12

Variable overhead 6

Fixed overhead (includes

manager at $4 per unit) 10

Total unit cost $ 56

Relevant costs:

Direct material $ 28

Direct labor 12

Variable overhead 6

Fixed overhead (includes

manager at $4 per unit) 4

Total unit cost $50

6 0

3 years ago