Answer:
The correct answer is letter "B": required rate of return.
Explanation:
The required rate of return helps investors determine where to invest and allows them to compare their investment returns to all other choices. They can do this by taking the <em>Risk-Free Rate of Return, Inflation, </em>and <em>Liquidity</em> into account. The required risk of return is subjective and varies from investor to investor.
<em>The lower the required risk of return implies investors are confident in the stock providing them profits which is a signal of stability of that asset that will be interpreted in an increase in the stock value.</em>
Answer:
$ 1252
Explanation:
Since we have been given the annual rate, but we have been asked for monthly payments, the first thing we should do is calculate the monthly rate.
R = (1+ APY) ^ 1/12 -1
Where:
R: monthly rate
APY: annual rate
R= (1+0.057)^1/12-1
R= 0.0046
Then, having monthly rate data, we can calculate the monthly payments. For that, we will use the formula for the present value of an ordinary annuity.
PMT= (P*R) / (1-(1+R)^(-n))
Where:
PMT: Monthly payments
R: monthly rate
P: Present value
n: Period
PMT= (220,000 * 0.0046) / (1-(1.0046)^-360))
PMT= 1,252
Answer:
Option (A) is correct.
Explanation:
There are few large firms in a oligopoly market conditions but in a monopolistic market conditions there are many firms selling the products.
Firms in both the market conditions are selling the identical products but they are not perfect substitutes. For example; aviation industry, beer industry, etc.
There is one unique characteristic of oligopolistic is the mutual inter-dependence.
