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lana66690 [7]
3 years ago
7

Security A: Probability 30% of Return 7%; Probability 50% of Return 12%; Probability of 20% of Return 17%. Security B: Probabili

ty 35% of Return 6%; Probability 65% of Return 16% What is the expected return for Security A
Business
1 answer:
earnstyle [38]3 years ago
5 0

Answer:

the expected return for security A is 11.50%

Explanation:

The computation of the expected return for security A is shown below:

The  Expected return for security A is

= Respective Return × respective probability

= (0.3 × 7) + (0.5 × 12) + (0.2 × 17)

= 11.50%

hence, the expected return for security A is 11.50%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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The career you pick in middle or high school is the one you will stick with your whole life.
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Answer: B. False

Explanation: If you chose a specific career and go for it until the end of high school you’ll probably have more knowledge in it but you can change your career by doing different curriculums during college or in the summer.

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2 years ago
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Mr. Smith is hired as a consultant to a firm evaluating entry into a perfectly competitive industry. Mr. Smith determined that a
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Answer:

P = 70, Ed = ∞ , Firm = Price Taker , Free Entry & Exit

Homogeneous Product , No selling costs , Long Run Normal Profits

Explanation:

Perfect Competition is a market form with : many number of buyers & sellers, selling homogeneous goods at uniform prices, while firms & consumers having perfect information & no selling costs.

In this market : Price = Marginal Cost , as taken by all firms from the industry & so demand curve is horizontal parallel to x axis - denoting perfectly elastic demand i.e infinite sale at prevailing price.

As market's all sellers goods are homogeneous & all have perfect information about it, no selling costs are required. Free Entry & Exit in industry also imply that Industry's profits are confined to 'Normal Profits' (No Supernormal profit / abnormal loss) in long run.

So, Smith's report would include all the above mentioned remarks.

5 0
3 years ago
If General Motors and the United Auto Workers​ (UAW) union fail to accurately forecast the inflation​ rate, the real wage will b
lisabon 2012 [21]

Answer:

actual inflation rate will be equal to the expected inflation rate in the long term.

Explanation:

Since in the given instance, both companies sign the long term contract rather than the short term contract, because they believe that the expected inflation rate for each year cannot be accurately expected, but that the inflation rate for a long term period can be more accurately expected.

This is based on the concept of trend analysis, a trend analysis can help find long term results with more close to reality.

Thus, both the companies here believe that the long term rate can be expected properly of inflation.

8 0
4 years ago
""The money and resources currently being devoted to the War on Terrorism reduces the quantity of other goods that we are able t
guajiro [1.7K]

Answer:

The Concept of Opportunity Cost

Explanation:

An opportunity cost is the cost associated with choosing to enjoy  a particular benefit or pursue a particular venture at the expense of enjoying the benefit of its best alternate choice. In other words, when you enjoy the benefits of action A, the opportunity cost is the potential benefit of action B that one had to give up to achieve action A.

According to the question, money and resources devoted to war on terrorism represents the choice of the nation and the benefits maybe that the country is free from terrorist attacks. However, the opportunity cost is that the benefit of freedom from terrorist attacks comes at the expense of goods that could have been produced if the country should choose to pursue production of goods.

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3 years ago
In the second half of 2019, automobile sales in the United States were lower than they were in the second half of 2018. The decr
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In the second half of 2019, automobile sales in the United States were lower than they were in the second half of 2018. The decrease in auto sales impacts GDP because new automobiles are counted as <u>consumption </u>when purchased by households and <u>investment</u> when purchased by businesses.

Gross domestic product (GDP) is the overall monetary or market value of all of the goods and services produced within a country's borders in a particular time period.

GDP can be calculated by adding up all of the money spent by consumers, businesses, and the government in a given period. It may also be calculated by adding up all of the money received by all the participants in the economy.

learn more about Gross domestic product (GDP) here

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