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Art [367]
3 years ago
11

The most significant conceptual difference between the arbitrage pricing theory (apt) and the capital asset pricing model (capm)

is that the capm _____________.
Business
1 answer:
MrRa [10]3 years ago
5 0
<span>is that the capm recognizes only one systematic risk factor.</span>
You might be interested in
For the following demand equation compute the elasticity of demand and determine whether the demand is elastic, unitary, or inel
Andreas93 [3]

Answer:

Note: While answering this question, there is a confusion as to whether the correct demand equation is p= 157 − x2 as it appears in the question, or p= 157 − x^2 which is suspected to be the correct equation. Whichever the case may be, answers are provided for the two equations. Just confirm from the original question or your teacher which one is correct and pick the relevant answer out of the two following answers:

1. If p= 157 − x2 is the correct equation:

Elasticity of demand = - 0.15

Since -0.15 in absolute term |-0.15| is less than 1, the demand is inelastic.

2. If p= 157 − x^2 is the correct equation:

Elasticity of demand = - 0.28

Since -0.28 in absolute term |-0.28| is less than 1, the demand is also inelastic.

Explanation:

Elasticity of demand is the degree of responsive of quantity demanded of a good to change in its price.

For this question, elasticity of demand can be computed using the formula for calculating the elasticity of demand as follows:

1. If p= 157 − x2 is the correct equation

E = Elasticity of demand = (p / x) * (dx / dp) ............................... (1)

From the question, we have:

p = 157 − x2.

Therefore, we solve for as follows:

x2 = 157 - p

x = (157 - P) / 2

x = 78.5 - 0.5p ....................................................... (2)

Differentiating equation (2) with respect to p, we have:

dx/dp = -0.5

Substituting values for dx/dp and x into equation (1), we have:

E = [p / (78.5 - 0.5p)] * (-0.5)

Since p = 20, we have:

E = [20 / (78.5 - (0.5 * 20))] * (-0.5)

E = [20 / (78.5 - 10)] * (-0.5)

E = − 0.15

Since -0.15 in absolute term |-0.15| is less than 1, the demand is inelastic.

2. If p = 157 − x^2 is the correct equation

E = (p / x) * (dx / dp) ............................................ (1)

From the question, we have:

p = 157 − x^2.

Therefore, we solve for as follows:

x = 157^(1/2) – p^(1/2)

x = 157^0.5 – p^0.5 ........................................... (2)

Differentiating equation (2) with respect to p, we have:

dx/dp = -0.5p^(-0.5) = -0.5/p^0.5

Substituting values for dx/dp and x into equation (1), we have:

E = (p / x) * (dx / dp)

E = [p /  (157^0.5 – p^0.5)] * [ -0.5/p^0.5]

Since p = 20, we have:

E = [20 /  (157^0.5 – 20^0.5)] * [–0.5/20^0.5]

E = - 0.28

Since -0.28 in absolute term |-0.28| is less than 1, the demand is inelastic.

4 0
2 years ago
My husband is 48 and wants to have relations every day what can i do
Damm [24]
You can divorce or seperate.
5 0
3 years ago
Journalize the following entries on the books of the borrower and creditor. (Assume a 360-day year is used for interest computat
frosja888 [35]

Answer:

James Co.

Journal Entries:

June 1:

Debit Inventory $90,000

Credit Accounts Payable (O'Leary Co.) $90,000

To record the purchase of merchandise on account, terms, n/30.

June 30:

Debit Accounts Payable (O'Leary Co.) $90,000

Credit Notes Payable (O'Leary Co.) $90,000

To record the issue of a 60-day, 5% note.

August 29:

Debit Notes Payable (O'Leary Co.) $90,000

Debit Interest on Notes $750

Credit Cash Account $90,750

To record the payment of the notes plus interest.

Explanation:

a) Data and Calculations:

Interest computations based on 360-day year

Interest on Notes = $750 ($90,000 * 5% * 60/360)

Inventory purchased on June 1 = $90,000

Interest on note = 5%

Payment of note = August 29

8 0
3 years ago
Devin is, a private investor, purchases $1,000 par value bonds with a 12 percent coupon rate and a 9 percent yield to maturity.
melisa1 [442]
The par value of a bond is the amount issuer promises to pay the bond-holder on the maturity date.

The overall return depends on when the bond was bought.  The closer to the maturity date, the lower the overall return, or yield-to-maturity (YTM).
If the YTM has been quoted as 9%, it means that the effective yield from today to the maturity date is 9%, according to the current price, and accounting for the 12% coupon, if applicable.
So Devin will earn a return of 9%.


5 0
3 years ago
Assume that an economy has 1,500 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20,
Drupady [299]

Answer: $60 million

Explanation: Total output is defined as the total value of all goods produced or services rendered by an individual, group or country. It is the total value which could be amassed from one's input.

Therefore,

An economy with;

Number of workers =2000

Work time of each worker = 1500 hours

Payment rate per hour = $20

Total output = (Number of workers * work time * payment rate per hour)

Total output = 2000 * 1500 * 20

Total output = $60,000,000

Therefore, total output or real gross domestic product of the country is

$60,000,000

3 0
3 years ago
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