Examine this supply and demand graph for a product. What does the red dot

According to Daniel Kahneman and Amon Tversky, a $1 loss pains us ________ times more than a $1 gain helps us.

34kurt

Daniel Kahneman and Amon Tversky believe that when we suffer a $1 loss, compared to a $1 gain, we suffer 2.25 pain.

<h3>What did Daniel Kahneman and Amon Tversky believe?</h3>

Based on some models that the two ran, they came up with a conclusion that we suffer more from losses than we get help from gain.

Their prediction was that a loss of $1 can hurt us about 2.25 more times than a gain of $1 can help us.

Find out more on losses at brainly.com/question/1165724.

7 0

2 years ago

Susan opened a savings account with $750 at 2.9 percent annual interest. If she keeps the money in the account for 2 years, what

Andrews [41]

Answer:

The answer is $793.50

Explanation:

To solve this, we will use the annual interest formula for simple interest, which is:

A = P(1 + rt)

Where:

A is the final amount including principal
P is the principal amount = $750
r is the rate per year = 2.9% or 0.029 (that is 2.9 divided by 100)
t is the number of years = 2 years

Next, we input these into the equation as follows:

A = 750(1 + 0.029 x 2)

A = 750(1 + 0.058)

A = 750(1.058)

A = 793.5

Therefore, Susan earns $793.50

7 0

3 years ago

Portfolio AB was created by investing in a combination of Stocks A and B. Stock A has a beta of 1.2 and a standard deviation of

deff fn [24]

Answer:

C. Portfolio AB has more money invested in Stock A than in Stock B.

Explanation:

Beta coefficient is used to measure the systemic risk of an investment, while standard deviation is employed to measure the total risk of an investment.

Under a portfolio investment decision making, beta coefficient is the relevant measure of risk to consider because its only aim is to put the undiversifiable risk into consideration.

Therefore, Portfolio AB has more money invested in Stock A because it has lower beta of 1.2 than in Stock B has a higher beta of 1.4.

6 0

3 years ago

firm x projects an roe of 14% and it will maintain a pplowback ratio of .45 its earnings this year will be 3.60 per share invest

miskamm [114]

Answer:

$47.61 per share

Explanation:

As we know that:

Current Price = Expected Dividend / (Required Return - Growth Rate)

Here

Expected Dividend is $1.98 (Step1)

Required Return is 11%

Growth Rate is 6.3%

By putting values, we have:

Current Price = $1.98 / (0.11 - 0.063)

Current Price = $42.13

The price of Stock in 2 years will be adjusted by growth rate:

Price of Stock in 2 years = Current Price * (1 + Growth Rate)^2

Here

Current Price of the stock is $42.13 per share

Growth rate = ROE * Plowback Ratio = 14% * 0.45 = 6.30%

By putting values, we have:

Price of Stock in 2 years = $42.13 * 1.063^2

Price of Stock in 2 years = $47.61 per share

So, you should expect the share to sell at $47.61 in 2 years

Step 1: Find Expected Dividend

Expected Dividend = Expected Earnings * Payout Ratio

Here

Expected Earnings is $3.6 per share

Payout Ratio = 1 - Plowback Ratio = 1 - 0.45 = 55%

By putting values in the above equation, we have:

Expected Dividend = $3.60 * 55%

Expected Dividend = $1.98 per Share

3 0

4 years ago

The rate of economic growth per capita in france from 1996 to 2000 was 1.9% per year, while in korea over the same period it was

bagirrra123 [75]

Answer:

36.83 years

16.85 years

$63,710.88

$ 71,490.43

Explanation:

We can use the nper formula in excel to compute the doubling time for the capital real GDP of both countries

=nper(rate,pmt,-pv,fv)

FV is the future real GDP which $28,900*2=$57,800 for France while that of Korea is $25,400 ($12,700*2)

PV is the present real GDP

rate is the economic growth rate of 4.2% in Korea and 1.9% in France

France=nper(1.9%,0,-28900,57800)= 36.83

Korea=nper(4.2%,0,-12700,25400)= 16.85

In 2045 ,which is 42 years from now the real GDP are shown thus:

=fv(rate,nper,pmt,-pv)=fv(1.9%,42,0,-28900)=$63,710.88

=fv(rate,nper,pmt,-pv)=fv(4.2%,42,0,-12700)=$ 71,490.43

3 0

3 years ago