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An underpriced stock provides an expected return that is less than the required return based on the capital asset pricing model (CAPM).
<h3>What is
capital asset pricing model?</h3>
The capital asset pricing model (CAPM) is a tool that helps to show how financial markets price securities is moving and help to determine expected returns on capital investments.
In this case, An underpriced stock provides an expected return that is less than the required return based on the capital asset pricing model (CAPM).
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Answer:
Explanation:
Right to work laws are designed so that no one is compelled to join a union.
So the answer is A. give workers in a unionized firm the right to choose whether to join the union.
Answer:
c. What is the impact of foreign competition on the U.S. auto industry?
Explanation:
Economic theory is divided into two broad areas: macroeconomics and microeconomics.
Macroeconomics discusses large economic aggregates, such as income, inflation, and employment variations. It is an approach that aims to discuss these factors and bring about improvements through economic policies.
In turn, microeconomics deals with micro factors, such as the behavior of consumers and companies, including in relation to competitive structures. Therefore, item (D) deals with microeconomics and not macroeconomics.
Answer:
GDP to increase
Explanation:
Gross domestic product (GDP) refers to the total value of goods and services produced within the boundaries of a nation. Its component are consumption, investment, government expenditure and net exports.
GDP = Y = Consumption + Investment + Government expenditure + Net exports
Net exports refers to the difference of total value of exports and total value of imports.
Net exports = Exports - Imports
Therefore, if there is an increase in the net exports then as a result the GDP of a nation increases.