Hello there,
The real output of the economy under conditions of full employment <span>is long-run aggregate supply.
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Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.
Compute the beta for ABC Company stock ?
The standard deviation of returns for the asset could be divided by the standard deviation of returns for the benchmark to determine beta. The correlation between the security's returns and the benchmark's returns of 32.21 percent is multiplied to arrive at the final number.
Given that AAPL's beta of 0.6035 suggests the stock theoretically experiences 40 percent less volatility than SPY, AAPL would be regarded as being less volatile than SPY in this situation.
A stock with a beta greater than 1.0 fluctuates more than the market over time. A stock's beta is less than 1.0 if it moves less than the market. High-beta equities typically carry higher risks but also have a bigger potential reward. Although they carry less risk, low-beta equities often offer lesser returns.
Because of this, beta is frequently employed as a risk-reward ratio, which aids investors in deciding how much risk they are ready to accept in order to reap the potential rewards. It's crucial to take stock price volatility into account when determining risk. Beta is a useful proximate for risk if you view of risk as the likelihood that a stock would depreciate in value.
Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.
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A. is the only appropriate answer.
Answer:
Higher interest rates
Explanation:
Higher interest rates is compared to expansionary monetary policies adopted to counteract a recession as it helps to moderate a country's economic growth by raising the costs of borrowing, reduce consumer spending, improving exchange rates and reduce inflation.
High interest rates are commonly caused as a result of an increase in demand for credit or money.
Answer:
Mercantilism
Explanation:
Mercantilism refers to the economic nationalism designed to create a wealthy and strong state. Adam Smith named the phrase "market system" to define the political science scheme that attempted to enhance the nation through disciplining imports and promoting exports.
Throughout the sixteenth century, the most crucial financial reason for mercantilism has been the replacement of the colonial-era major power centers by big, powerful nation-states. Thus, from the above we can conclude that the correct option is mercantilism.