Answer:
B. The portfolio expected rate of return must be the same for each economic state.
Explanation:
Variance formula = sum of (probability x (r - mean)^2)
r= expected return
if the expected return would be same for each economic state then the mean would equal to expected return which ultimately will give variance zero ( as r-mean would be 0).
Hence the correct option is B. The portfolio expected rate of return must be the same for each economic state.
Answer:
Explanation:
Let x be the amount loaned at 7% and ($19,000 - x) be the amount loaned at 15%
Given:
Interest incurred at 7%, I1 + Interest incurred at 15%, I2 = $2000
Interest, I = amount × rate
I1 = 7/100 × x
I2 = 15/100 × ($19,000 - x)
From the above expressions,
(0.07)x + (0.15) × ($19,000 - x) = $2,000
Solving for x,
0.07x + 2850 - 0.15x = 2000
Collecting like terms,
0.08x = 850
x = $10625
The amount loaned at 7% interest is
$10625
The amount loaned at 15% interest is ($19000 - $10625)
= $8375
Answer:
The most probable result is that the court will declare the contract invalid and non-binding because the purchase price and important terms regarding the consideration involve are too vague and indefinite.
In order for a contract to be considered valid and binding, consideration must exist and the more precise the terms, the better. Consideration is something of value that both parties exchange. In this case it is a house vs. money, but the price is not specified.
Answer:
my individual capabilities in project teamwork include tolerance, respect for difference in values, objectivity
Explanation:
I am strong in certain capabilities because of my ability to think outside. To do this, some of my individual capabilities in project teamwork include tolerance, respect for difference in values, objectivity and avoiding instances of associated with crisis during work and an open policy system.
In the other vein, I would need to develop my weaknesses in the areas of over-tolerance and the useof vogue language when angry.
Answer:
moral hazard
Explanation:
Banks reduce the risk of moral hazard when they monitor and supervise how their clients are using the loans and credits made to them.
Some types of credits do not require any type of monitoring or control, e.g. a credit card which a client can use basically however he/she wants to. But other types of credit that are taken for purchasing assets, e.g. a mortgage, must be used by the bank's client to specifically carryout the intended activity.
In economics, moral hazard refers to the tendency that an economic party can engage in unusually risky activities because the capital (money) that they are investing is not theirs and the negative effects of a potential loss will be suffered most by other parties.
