Answer:
A. 0%
Explanation:
The expected rate of return of A = 11%
Expected rate of return of B = 7%
Risk free rate = rfr = 5%
Sdb = 3%
SDa = 18%
Correlation coefficient = 0.50
The formula used to solve for the required answer is in the attachment.
When computed, we have
0.000054-0.000054/0.000036+0.000216
= 0/0.000252
= 0
Therefore the first option is the correct answer
0% should be invested in stock A.
Explanation:
Income Elasticity of Demand(IED)= Percentage change in quantity demanded/ Percentage change in income
-Percentage change in Q:
%Change in quantity demanded= (q2-q1/q1) = (10-8)/8= 0.25
-Percentage change in Income:
%Change in income= (i2-i1/i1) = (4,500-4,000)/4,000= 0.125
IED= 0.25/0.125= 2
This indicates that the Shaffers are very sensitive to changes in income when it comes to eating out. Which means that changes in income will change significantly the number of times they eat out.
2. Restaurant meals are normal goods, in this case, because when income rises, they ate more in restaurants, then the units consumed for this good increase too.
One of the disadvantages of dealing with a financial intermediary would be: <span> A financial intermediary shares risks.</span>
Answer: Emphasis must be made on sales and profits, with the central position being how the customer perceive this goods
Explanation:
Advertisement should be aimed at improving sales and expanding the market for goods. Advertisement is not just to bring customers but also inform them on updates about products. Although customers attitude are needed, this helps the manufacturer or producer to know feedback on what the market is saying, as this cannot be ignored. Emphasis must be made on sales and profits, with the central position being how the customer perceive this goods.
The apparent mismatch is producers looking solely to what the customers are saying rather than considering profit, market expansion, sales, all surrounded by the customer as the focus
An increase in the price of cappuccino will increase the quantity of cappuccinos demanded. False. When an item is in demand but not a drastic need for the item and you raise the price, the quantity sold will likely decrease. Since a coffee isn't a necessity when the price to purchase becomes too high for a consumer, the amount purchased will slowly drop off.
