Answer: The higher the risk, the higher the return.
Returns from an investment refers to the gains or losses over a specified period, and is quoted as percentage.
Risk refers to the possibility or the chance that the actual return that is earned is greater than or less than the return expected by the investor. Thus, uncertainty is another name for risk.
If the returns from an investment are certain, the risk involved is low. When risk is low, the returns are also low. For e.g. the return from a T-bill is low because the risk of default is zero, since the government can print money to fund its debt.
The higher the level of risk involved, the greater the potential for a higher return.
Answer:
$5,592
Explanation:
Given:
Number of calculators ordered = 25
Cost of each calculator = $4747
thus,
Total cost of the calculators ordered = 25 × $4747 = $118,675
Selling cost of each calculator = $5656
Number of calculators sold = 22
Total revenue = 22 ×$5656 = $124432
Number of calculators returned = 3
Charges for returning the calculator = $55
Total charges for returning the calculators = 3 × $55 = $165
Now,
The total profit
= Total revenue - Total cost of the calculators - Total charges for returning
= $124432 - $118,675 - $165
= $5,592
Answer:
The correct answer is letter "D": other things remaining the same; higher; lower..
Explanation:
According to the demand law, <em>ceteris paribus</em>, as long as the price of a good or service decreases the quantity demanded increases. If the price increases, the quantity demanded for that good or service decreases. The relationship between quantity demanded and the price is inversely proportional.
Answer:
$8,000
Explanation:
Data provided in the question:
Average cost of car = $25,000
Now,
Using the class recovery system of five years,
The rate of depreciation expense in year 2 of the MACRS is 32%
Therefore,
The depreciation expense in the year 2 will be
= Average cost of car × Rate of depreciation
= $25,000 × 32%
or
The depreciation expense in the year 2 = $8,000
Answer:
(a) Option (c) is correct.
(b) Option (b) is correct.
Explanation:
(a) If there is an unexpected decrease in the oil prices (Positive supply shock) then as a result this will reduce the cost of production of the firms and hence, there is an increase in the supply of the goods. This will shift the aggregate supply curve rightwards.
(b) If all the producers are required to contribute more towards the heath insurance coverage (negative supply shock) then as a result this will increase the cost of production of the producers. So, this will lead to decrease the supply of the goods and also, shift the supply curve leftwards.
