1. Piecework
2. Salary
3. Hourly
4. Commission
I would say either obligation or guilt
Answer:
a. Shopping for used cars when the seller has private information about the car unavailable to the buyer
Explanation:
When the market is not able to produce an efficient quantity, then it is said that market is failed. This might happens due to many reasons and asymmetric information is one of them. When there is an asymmetric information, then the sellers of the used car have information about it, but the buyer do not have the full information about the used car.
Hence this leads to inefficient outcome and therefore market fails.
Hence it can be said that a market failure example is Shopping for used cars when the seller has private information about the car unavailable to the buyer.
Hence option first is the correct answer.
Answer: A)0.028025
Explanation:
Covariance measures thw relationship between 2 random variables by measuring the variations of two variables from their expected value.
When calculating covariance we use the following formula,
Cov (R1, R2) = p12*σ1*σ2
Where
p12 is the correlation coefficient
σ1 is the standard deviation of Variable 1
σ2 is the standard deviation of Variable 2.
Calculating then we have,
Cov (hs,mt) = 0.078042 * 0.57* 0.63
Cov (hs,mt) = 0.0280248822
Cov (hs,mt) = 0.028025
The covariance of the returns is 0.028025.