Answer: return on equity
Explanation:
The return on equity is simply a measure of how profitable a business will be when it's being compared to its equity. Return on equity is the net income divided by the equity. It can also be gotten when liabilities is deducted from assets.
In the above analysis, return on equity equals 5% because 100 cents make 1 dollar. Therefore, 5/100 × 100 gives 5%.
Answer:
the Expected rate of return will be 8.2%
the variance will be 0.001296
Explanation:
We will calculate the Expected Rate of Return which is the sum of the wieghted return based on their probabilities:
return of 0.15 probability 20% = 0.03
return of 0.07 probability 70% = 0.049
return of 0.03 probability 10% = 0.003
expected return = 0.082 = 8.2%
Now to calculate the variance we do:
∑(rk-ERR)^2 x pk
The sum of the difference between the expected rate and the escenario rate, power two, and multiply by their posibility
the variance will be: 0.001296
Answer:
$100 in bank A
$900 in bank B
Explanation:
Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.
- bank A = $1,000 x 10% = $100
- bank B = $1,000 x 90% = $900
If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.
Answer:
III. Points on the PPF curve are the only ones that achieve "productive efficiency"
Explanation:
What is true about productive efficiency is that Points on the PPF curve are the only ones that achieve "productive efficiency".
Productive efficiency is an economic term that is concerned with producing goods and services with the optimal combination of inputs to produce maximum output for the minimum cost.
For it to be said that an economy is productively efficient means the economy must be producing on its production possibility frontier
Hence productive efficiency happens when production is reportedly occurring along a production possibility frontier (PPF).
