Answer:
a.38%
b. No because the margin is above the requirement at 38%
c.-150%
Explanation:
a.
1000 shares*$40 per share = 40000
margin requirement is 50% so equity = 20000
1 year later price increase to 50
$1000 shares*$50 per share = 50000
dividend = $2*1000 = 2000
margin = 20000/52000 = 38%
b.
No because the margin is above the requirement at 38%
c.
Price of 1000 stock year 1 at 50$/share = 50000
40000 – 50000 = -10000
Rate of return = (-10000 -20000)/20000 = -150%
Answer:
A. Overconfidence effect
Explanation:
Overconfidence effect is a kind of bias whereby individual's subjective confidence in their own abilities is greater than the objective or actual performance accuracy of those abilities. During surveys, respondents usually have this kind of bias. An example is the one stated in the question whereby average people tend to fill that they are "above average" on certain features like intelligence and perceptiveness. It is a common bias as individuals usually assume that they are better than their real ability by overestimating those abilities inherently.
I guess the correct answer is the color of the decorations in the room
A group of researchers wanted to determine if people will eat more food in a room with red paint and red decorations than in a room that is decorated blue. Half the participants in this study ate in a red room and half ate in a blue room. The researchers then measured how much food was consumed in each of the two rooms. In this study, the independent variable was the color of the decorations in the room.
Answer:
$29,050
Explanation:
The computation of the residual income is shown below:
Residual income = Net operating income - Minimum required income
= $83,000 - $53,950
= $29,050
Here
Minimum required income = Average operating assets × Minimum required rate of return
= $415,000 × 13%
= $53,950
This should be the answer and the options provided are wrong
