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Vedmedyk [2.9K]
3 years ago
5

If all investors become more risk averse the SML will _______________ and stock prices will _______________. Multiple Choice hav

e the same intercept with a flatter slope; rise shift upward; rise have the same intercept with a steeper slope; fall shift downward; fall
Business
1 answer:
Eddi Din [679]3 years ago
7 0

Answer:

1. have the same intercept with a steeper slope;

2. fall

Explanation:

If all investors become more risk-averse, the SML will "have the same intercept with a steeper slope," and stock prices will "Fall."

The above statement is TRUE, and it is based on the theory that the slope of the Security Market Line reflects the level at which investors are unwilling to take the risk. Whereby the average investor prefers higher returns but is reluctant to take the risk.

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Which one of the following is NOT an advantage of buyer's agency? The efforts that a buyer's agent exerts on behalf of the buyer
sasho [114]

"The use of a buyer's agent guarantees that the buyer will get a property for the lowest price possible" is NOT an advantage of buyer's agency.


It is true that the efforts that a buyer's agent exerts on behalf of the buyer cannot be compromised and that the buyers can freely communicate confidential information without fear that disclosing that information will weaken their negotiating position. The buyers will also have the benefit of a licensee's expertise in finding the right property, negotiating the purchase and attending to closing details.

However, using a buyer's agent won't guarantee that the buyer can get the best deal on a property; as a result, this is not one of the advantages of buyer's agency. The agent would only consider what is best for the buyer and not the cheapest.

Agents will also charge extra fees and commissions for representing their buyers. To avoid additional expenses, some buyers and sellers choose not to use an agent. In order to save more money and find a property for the lowest price, buyers should avoid using an agent and instead deal directly with the seller.

Learn what happens when there's no buyer agency agreement in place here: brainly.com/question/28066390

#SPJ4

4 0
1 year ago
When some firms exit an industry in which firms are incurring economic​ losses, the market supply curve shifts​ _______ and the
torisob [31]

Answer: Option (A) is correct.

Explanation:

Correct option: Leftward; rises

When some of the firms are exited from market because are incurring losses then as a result short run market supply decreases. This is due to the fall in the production level, since some of the firms are not producing anymore.

So, this change in the market supply will shift the market supply curve leftwards.

The market price increases as the market supply decreases.

8 0
3 years ago
Jessica, a university student, accepts everything Prof. Hendricks has to say solely because he is the professor. It can be infer
tresset_1 [31]

Answer:

The answer is: E) a highly authoritarian personality.

Explanation:

A person with a highly authoritarian personality believes in extreme obedience and total unquestioning respect for authority. They are also very submissive to the authority of the leader figure. They also tend to have extreme beliefs in what they consider right or wrong, no gray areas, and they dislike completely those who think differently.

7 0
3 years ago
Costs that do not change in total over wide ranges of volume. 2. Technique that estimates profit or loss results when conditions
likoan [24]

Complete Question:

Match the terms with the correct definitions.

Answer:

1. Fixed costs: Costs that do not change in total over wide ranges of volume.

2. Sensitivity analysis: Technique that estimates profit or loss results when conditions change.

3. Breakeven point: The sales level at which operating income is zero.

4. Margin of safety: Drop in sales a company can absorb without incurring an operating loss.

5. Sales mix: Combination of products that make up total sales.

6. Contribution margin: Net sales revenue minus variable costs.

7. Cost behavior: Describes how a cost changes as volume changes.

8. Variable costs: Costs that change in total in direct proportion to changes in volume.

9. Relevant range: The band of volume where total fixed costs and variable cost per unit remain constant.

Explanation:

It is required that each term are matched with their respective correct definitions. The terms are generally associated with business and sales management.

For instance, fixed costs are indirect costs that do not change in total over wide ranges of volume and irrespective of the level of output (goods and services) e.g rent, salaries, property tax, insurance, depreciation etc.

Also variable costs are costs that change in total in direct proportion to changes in volume of goods and services e.g sales commission, utility costs, raw materials costs, credit card fees, direct labour costs etc.

3 0
3 years ago
A customer makes a small order, you deliver the goods, and he pays by check. The check clears. He makes another small order, you
Andreyy89
Cheque <span>fraud I believe... </span>
3 0
4 years ago
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