<span>An increase in investment shifts the AE curve upward by an amount equal to the change in investment, and shifts the AD curve rightward by an amount equal to the change in the investment by the multiplier.
The AE curve stands for the aggregate expenditure which measures expenditures on consumption. The AD curve stands for the aggregate demand curve which measures the demand levels when prices change for a good or service in an economy.
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Answer:
A) Profitability index.
Explanation:
Based on the scenario being it can be said that the most appropriate tool to use in this specific situation would be a Profitability index. This is a ratio that weighs the payoff to the investment of a specific project. It is allows individuals to rank projects on the amount of value that they will be getting from them. Thus allowing you to choose the most optimal projects in situations such as this one.
Answer: 1.66
Explanation:
Based on the information given in the question, the beta of the stock will be calculated as follows:
Expected return = 16.2%
Market return = 11.2%
Inflation rate = 3.1%
Risk-free rate of return = 3.6%
We should note that:
Expected return = risk-free rate + Beta × (market rate- risk-free rate)
Therefore,
16.2% = 3.6% + Beta × (11.2% - 3.6%)
16.2% = 3.6% + Beta × 7.6%
16.2% - 3.6% = Beta × 7.6%
12.6% = Beta × 7.6%
Beta = 12.6% / 7.6%
Beta = 1.66
I believe the answer Is b, false. Bad experiences leave a bigger impression than good experiences. Kind of like how you can remember more hurtful things people have said to you than nice things
Answer:
b. helps identify the variable within a project that presents the greatest forecasting risk.
Explanation:
Sensitivity analysis refer to the financial model that measures how the variable i.e. target one should be impacted and depend on the change in the other variable that we called as an input variable
In this, it would help to identify the variable that lies within the project and provide the high risk of forecasting
Therefore the option b is correct
