Answer: Option (a) is correct.
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded with change in the income level of an individual.
Income of an individual has a positive relationship with the demand for normal goods and has a negative relationship with the demand for inferior goods.
Answer: The focus of management accounting is on "C) internal reporting.".
Explanation: It could be understood as the concept of management accounting as that economic information destined to the internal users of the company and which is mainly responsible for the analysis of the costs of the company, helping to make management decisions and business control.
Answer:
D
Explanation:
its is D because why not ight
Answer:
Check the explanation below
Explanation:
Inflation is systematic (Market) risk, it impacts all stocks
Results of company is unsystematic (Specific) risk, as they are as expected stock price wont have much impact
Economic growth is systematic (Market) risk, as it is inline with forecasts stock prices will be constant
Directors death is unsystematic (Specific) risk, stock price will go down
Taxation is systematic (Market) risk, as it is discussed from 6 month, stock price wont have much impact currently
Answer:
e). None of the above, because a perfect hedge does not exist
A perfect hedge is nearly impossible
Explanation:
A perfect hedge is a position undertaken by an investor that would eliminate the risk of an existing position, or a position that eliminates all market risk from a portfolio. In order to be a perfect hedge, a position would need to have a 100% inverse correlation to the initial position.
At the time of taking an opposite position in Derivatives Market, Perfect Hedge would mean covering the risk involved in the Cash Market Position completely, i.e. 100%. 2. Imperfect Hedge: When the position in the cash market is not completely hedged or not hedged to 100%, then such a hedge is called Imperfect Hedge.
