Answer: Invest according to your risk appetite
Explanation:
The purpose of this question is to measure your risk appetite. There is therefore no right or wrong answer.
If you pick nothing, then you are very risk averse because you don't want to risk your salary on a venture with only a 20% chance of success.
If you would invest a month salary, you are not risk averse but you only have a moderate risk tolerance.
If you invest three months salary on a venture with a 20% chance of success, you have a high tolerance for risk.
If you take it a step further and invest six months salary, this shows that you have a very high risk tolerance.
The interest rate that should be used when evaluating a capital investment project is sometimes called the appropriate discount rate and cost of capital.
The cost of capital refers to the minimum rate of return needed from an investment to make it worthwhile, whereas the discount rate is the rate used to discount the future cash flows from an investment to the present value to determine if an investment will be profitable. Appropriate Discount Rate means, at any time, the real (i.e., not inflation adjusted) weighted average cost of capital (after taxes payable by the concession business).
Cost of Capital = (Risk-Free Rate of Return + Credit Spread) × (1 – Tax Rate)
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Answer:
Linear function. It is actually a negative linear graph. for the products prices increases, there was a noticeable decrease in demand
slope y=-225/8x+19275/8
y=1987.5
y=1903.125
Explanation:
A consumer products company has collected some data relating monthly demand to the price of one of its products: 4. Price Demand $111100 2,100 $13 2,020 1,980 1,875 $19 What type of model would best represent these data?
Linear function. It is actually a negative linear graph. for the products prices increases, there was a noticeable decrease in demand
slope is
m=y2-y1/(x2-x1)
PICKING TWO POINTS
(11,2100) and (19,1875)
m=1875-2100/(19-11)
m=-225/8
as the slope
(11,2100). y=mx+b or
2100=-225/8 × 11+b,
solving for b: b=2100-(-225/8)(11).
b=19275/8.
(19,1875). y=mx+b or 1875=-225/8 × 19+b, or solving for b: b=1875-(-225/8)(19).
b=19275/8. is the intercept
y=mx+c is the equation of line graph
y=-225/8x+19275/8
when x=15
y=1987.5
when x=18, y=
-225/8(18)+19275/8
y=1903.125
In most nations, one or more governing bodies must approve government spending or new tax policies. this process causes a(n) implementation lag.
Implementation lag is the delay between an adverse macroeconomic event and the implementation of a fiscal or monetary policy response by the government and central bank. Implementation lag can result into delays due to various reasons such as failure in recognizing a problem, disagreements and bargaining over the appropriate response; physical, technical and administrative constraints etc.
Implementation lag may reduce the effectiveness of a policy response or even result in periods of procyclical policy. There is always an implementation lag after a macroeconomic surprise.Policy makers may not ever realize there is a lag due to data lag.
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