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GuDViN [60]
3 years ago
10

"Some​ companies, such as​ Heinz, can forecast revenues well using pure time series analysis​ (that is, by extrapolation of prio

r​ data, accounting for seasonal​ effects). Other​ companies, such as FedEx​ (which makes money by shipping​ packages), or Sony​ (which sells consumer​ electronics) find that they cannot rely on pure time series analysis for reliable forecasting. They are strongly affected by recessions and need to use​ theory-based methods, including such explanatory variables as income in their forecasting models. Why are they different from​ Heinz?"
Business
1 answer:
qwelly [4]3 years ago
4 0

Answer:

Heinz sells ketchup and other sauces and condiments. Their demand is relatively stable and doesn't change that much year after year. The demand for their products is not that seriously affected by economic recessions or expansions.

On the other hand, Sony is a consumer electronics company and the demand for their products can vary drastically from one year to another. It depends on trends and innovations, and their total sales are affected by disposable income (expansions increase disposable income while recessions decrease it).

FedEx is also affected severely by economic recessions or expansions. Since FedEx ships and transports goods, when the economy is booming, FedEx is doing excellent. But if the economy starts to cool down or enters a recession, the amount of goods transported falls.

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andrew11 [14]

Answer:

Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i.e., the correlations are all between 0 and 1. Expected Standard Stock Return Deviation Beta

A 10% 20% 1.0

B 10% 10% 1.0

C 12% 12%1.4

Portfolio AB has half of its funds invested in Stock A and half in Stock B. Portfolio ABC has one third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium, so required returns equal expected returns. Which of the following statements is CORRECT?

Question 13 options:

a) Portfolio ABC's expected return is 10.66667% correct answer

. b) Portfolio AB has a standard deviation of 20%.

c)Portfolio ABC has a standard deviation of 20%.

d)Portfolio AB's required return is greater than the required return on Stock A.

e)Portfolio AB's coefficient of variation is greater than 2.0

8 0
3 years ago
What were the economic changes that revolutionized manufacturing in the eighteenth century and led to the factory system?
Daniel [21]

Answer:

The industrial revolution affected the whole global economy, social relations, and culture.

The industrial revolution changed how goods were manufactured, and it all started with the European accumulation of capital and the invention of the steam engine.

The two major sources of energy were coal and oil that were used to power steam engines that moved machinery using water steam. That led to work specialization and urbanization (people moving into large urban areas).

The industrial revolution first started in northwestern Europe, but it then spread to the US, Russia and Japan. The global economy developed new patterns of global trade and production between nations that produced resources and those that processed them and produced goods.

Exporting economies grew around the world because of the need for exporting both raw materials and food supplies from resource producing nations, and the need for exporting finished goods form industrialized nations.

7 0
3 years ago
Why did a division of labor occur when people started to produce a surplus of food
Aneli [31]
Simple answer is efficiency.

More output can be produced if labour specialised and focused on a particular activity.

One due to the time saved from switching tasks and secondly getting better (and faster) at what they do.

This leads to two outcomes.
1. Lower average costs of production
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Murljashka [212]
The answer to this is true
4 0
3 years ago
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3. Kevin took out a loan for a car. He must pay $3,000.00 in interest, service
ss7ja [257]

Answer:

The finance charge

Explanation:

The finance charge is the total cost incurred when borrowing money, including interest amount and all other fees. It is the extra money paid on top of the borrowed amount. The finance charge may be a flat fee or a percentage of the principal amount.

The finance charge represents the expense incurred for using credit. The finance charge is an important consideration when choosing a preferred lender.

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