Answer:
SO expected return on Mkt Portfolio Rm = 10.75%
Explanation:
market degree of risk aversion A = 3
Var = 0.0225 = SD^2
Rf = 4%
What is expected return on Mkt Portfolio ie Rm??
According to CAPM, Rm-Rf = A*SD^2
where SD is Std Dev (Recall SD^2 = Variance)
A is market degree of risk aversion
So we have Rm-4% = 3*0.0225
ie Rm = 4% + 3*0.0225 = 10.75%
SO expected return on Mkt Portfolio Rm = 10.75%
Answer:
c. progressive tax
Explanation:
Progressive tax can be regarded as one of the tax structure whereby the tax payer that receive higher incomes in the state pay a higher share of taxes from the income they made, which is different from those that receive Lower income. It is a tax system whereby when there is increase in tax rate then the taxable amount increases too. It should be noted that the tax structured where people with the same income pay the same percentage of their income in taxes is reffered to as progressive tax. wealth/property tax is one of the example of progressive tax.
Explanation:
It is given that in the market there are four equal-sized firms that produce similar products. The market is saturated such that 10% industry-wide price rise would lead to 18% decline in units sold by all firms in the industry. Going further, there is a proposed legislation that imposes a tariff on a key input used by the industry, which on realization would result in the increase in marginal cost by $2.
This means that the market elasticity of demand is:
[ FIND THE ATTACHMENT FOR SOLUTION]
Answer: The following would the accountant do related to the compilation engagement: <u><em>Issue a compilation report even though review procedures were performed on the engagement.</em></u>
Under Statements of Standards for Accounting and Review Services (SSARS), the accountant decided to perform some analytical procedures.
<u><em>Therefore, the correct option is (d)</em></u>
The answer to your question is "Oligopolies."
An oligopoly is a market form where a market is controlled by a few large sellers or businesses. The type of market is going to effect the price in one of two ways. The first possibility is that the few businesses will work together, or collude, in order to establish higher than normal prices. The second possibility is that there will be fierce competition between the few sellers, which will result in a high level of competition and lower prices.
