Answer: a) A measure of the volatility of returns on an individual stock relative to the market
Explanation:
Beta is indeed a measure of the volatility of returns on an individual stock relative to the return on the market as a whole.
It is used in the Capital Asset Pricing Model which enables for the calculation of the stock's expected return.
Market Beta is always 1. Therefore betas measure shows how much more or less volatile than the market return, the stock return is. For instance, a beta of 2 means that the stock's returns are twice as volatile as the markets and a beta of 0.5 means the returns are only half as volatile as the market.
C. It is calculated by adding the seasonally adjusted unemployment rate to the annual inflation rate.
Answer:
An increase in the quality of education would increase human capital. This would lead to an outward shift of the production possibilities curve
b. If the number of unemployed workers increases, there would be no change in the labour force. the production possibilities curve would not be affected
c. The new technology is technological advancement. Technological advancement leads to an outward shift of production possibilities curve
d. The earthquake would destroy capital stock and resources needed in the production process. As a result, production possibilities curve would shfit inward
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
Answer:
Karen must recognize income of $20,000 in 2019 and $500 in 2020
Explanation:
Accrual basis of accounting states that income must be recognized in the period when it is earned and expenses must also be recognized when it is incurred.
Therefore, since the goods was sold in December 2019 and $500 interest was paid with the principal in April 2020, Karen must recognize income of $20,000 in 2019 and $500 in 2020.
Answer:
Lanny's deductible income = $24,000
Explanation:
Given:
Lanny's payment per month (Wife) = $2,000
Lanny's payment per month (Child) = $5,00
Lanny's deductible income = ?
Computation of Lanny's deductible income :
Lanny's deductible income = Lanny's payment per month (Wife) × 12 month
Lanny's deductible income = $2,000 × 12 month
Lanny's deductible income = $24,000
Note: Payment made for the support of a single child must not be deducted in Gross Income.
