1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ivanzaharov [21]
3 years ago
11

Over the past four years, the annual percentage returns on large-company stocks were 15, 7, 4, and 18%. For the same time period

, U.S. Treasury bills produced the returns of 6, 3, 2, and 4 percent. Inflation averaged 2.8% over the four-year period. The average real rate of return on large-company stocks was ___% as compared to _____% for Treasury bills.a. 6.47; .92.
b. 6.47; 1.08.
c. 7.98; .92.
d. 7.98; 1.08.
e. 7.98; 1.22.
Business
1 answer:
Kisachek [45]3 years ago
4 0

Answer:

c. 7.98; .92.

Explanation:

My calculations varied slightly (0.02% and 0.01%), but the error might be a rounding error. Option C is the logical answer since the difference is minimum.

real rate returns from stocks:

15% - 2.8% = 12.2%

7% - 2.8% = 4.2%

4% - 2.8% = 1.2%

18% - 2.8% = 15.2%

average real return = 8.2% arithmetic mean

average real return = 8% geometric mean

real rate returns from US T-bills:

6% - 2.8% = 3.2%

3% - 2.8% = 0.2%

2% - 2.8% = -0.8%

4% - 2.8% = 1.2%

average real return = 0.95% arithmetic mean

average real return = 0.93% geometric mean

You might be interested in
Stock A has a beta of 0.7, whereas Stock B has a beta of 1.3. Portfolio P has 50% invested in both A and B. Which of the followi
tresset_1 [31]

Answer:

The question is incomplete;

a. The required return on Portfolio P would increase by 1%.

b. The required return on both stocks would increase by 1%.

c. The required return on Portfolio P would remain unchanged.

d. The required return on Stock A would increase by more than 1%, while the return on Stock B would increase by less than 1%.

e. The required return for Stock A would fall, but the required return for Stock B would increase.

The answer is a. The required return on Portfolio P would increase by 1%.

Explanation:

6 0
4 years ago
Werner installs custom sound systems in cars. If he installs seven systems per day, his total costs are $300. If he installs eig
sergiy2304 [10]

Answer:

$100

Explanation:

Total cost if he installs seven systems = $300

Total cost if he installs eight systems = $400

Therefore, the marginal cost of installing 8th system is the difference between the total cost of installing eight systems and the total cost of installing seven systems.

Marginal cost of installing 8th system:

= Total cost of installing 8 systems - Total cost of installing 7 systems

= $400 - $300

= $100

The profit maximization conditions says that the marginal cost must be equal to the marginal revenue.

Hence,

William will install eight systems per day only if the eight customer is willing to pay at least $100.

8 0
3 years ago
Case Scenario:
Lady_Fox [76]

Explanation:

When the procedure is so standardized and outdated, now is the time for the HR-specalist to rethink the process seriously

  • The present problem is clear that the procedure and the workforce are monotonous alike.
  • In order to ensure that employees do not become homogenized, the organization must actively look out and hire from various backgrounds.
  • Diversify the quest by reaching you where you are. Using professional associations for a number of applicants. Take part in networking groups, student associations and other networks now serving as a platform in the publications and engage in conventions or networking events with different candidates.
  • Ask you to put out the names on the CVs to your recruitment service. Even the name will affect the best management efforts to ensure diversity.
  • Start with the diversity the company is already seeking. Request endorsements from your manager. Different workers are linked to a number of job applicants. Have them involved.-Get everyone involved. Tell you to share your social media posts.
  • The best policy is honesty. Answer me if you want a wider range of job candidates! This is the fastest and easiest way to speak. Just to say it takes the candidates ' guesswork. You know instantly that you respect various cultures, ages, races, etc.

A dynamic, inclusive business would definitely have a competitive advantage. A diverse group has various ideas, because no monotony offers it a snapshot of other people

7 0
4 years ago
You are assigned to be the team leader of a group project at your company. You call a meeting with your team but allow everyone
Makovka662 [10]
Someone who nourishes and evokes the best qualities in people
6 0
3 years ago
Which type of comprehension focuses on who, what, where,when,why
choli [55]

Answer:

Literal Comprehension

5 0
3 years ago
Other questions:
  • Michigan Mattress Company is considering the purchase of land and the construction of a new plant. The land, which would be boug
    8·1 answer
  • Applying Activity-based management to ABC systems: A. Reveal activities that can be eliminated B. Help control nonfinancial item
    5·2 answers
  • If the price of oil rises around the world what will happen to oil production in texas
    10·1 answer
  • What is the final step of developing an effective marketing planning process (MPP)? clarify the goals and objectives of the plan
    14·1 answer
  • Samson, Inc. had the following balances and transactions during​ 2019: Beginning Merchandise Inventory 10 units at $ 94 March 10
    6·1 answer
  • Eurodollar bonds:
    13·1 answer
  • Francum Company has the following data: direct labor $245,000, direct materials used $198,000, total manufacturing overhead $218
    14·1 answer
  • Which sentences in the passage are true regarding the expenses involved in various stages of distribution?
    5·1 answer
  • HOW DO I GET A GIRL TO LIKE ME HURRY BEFORE THE QUESTION GETS DELETED
    8·1 answer
  • What is the duty of the designated rbs certified person at a non-profit organization's temporary alcohol event?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!