Answer: Option (D) is correct.
Explanation:
If the potential GDP is 70 and economy is in recession. Potential GDP is the GDP of an economy which can be achieved with the best utilization of economy's resources.
The amount of the shortfall in planned aggregate expenditure is equal to the vertical distance between the 45 degree line and the AE = Y, at a level of potential real GDP.
This is also shown by an arrow in the diagram.
Answer:
The portfolio's alpha is - 0.15%
Explanation:
For computing the portfolio's alpha, first, we have to compute the expected rate of return. The formula is shown below:
Expected rate of return = Risk free rate of return + Beta × (realized rate of return - free rate of return)
= 7% + 1.15 × (12% - 7%)
= 7% + 1.15 × 5%
= 7% + 5.75%
= 12.75%
Now the portfolio alpha equal to
= Expected rate of return - portfolio realized rate of return
= 12.75% - 12.6%
= - 0.15%
Answer:
(1) $2,720
(2) $2,220
Explanation:
Given the following sequence:
300 units at $6, 400 units at $7 and 200 units at $8
(1) FIFO method
Ending inventory = 360 units
Cost of ending Inventory:
= 200 units at $8 + 160 units at $7
= 200 × $8 + 160 × $7
= 1,600 + 1,120
= $2,720
(2) LIFO method
Cost of ending Inventory:
= 300 units at $6 + 60 units at $7
= 300 × $6 + 60 × $7
= 1,800 + 420
= $2,220
The answer to this question is a practice analysis report. A practice analysis report is a report that is used to analyze the revenues. Also this reports provides a breakdown of the charges, payments, and any adjustments made in a specified period of time. In practice analysis report it can also compare the procedures done and the procedures that are still on hold or not yet done.
