Answer:
Assume the weight to be invested in Bay Corp is x. That means (1 - x) will be the weight for City Inc. The expression for the expected return will be;
(x * 11.2%) + ( (1 - x) * 14.8%) = 12.4%
0.112x + 0.148 - 0.148x = 0.124
-0.036x = -0.024
x = 0.67
Portfolio beta is;
= 0.67 * 1.2 + ( 1 - 0.67) * 1.8
= 1.398 so beta condition is satisfied.
Amount in Bay Corp.;
= 0.67 * 50,000
= $33,500
Amount in City Inc.;
= 50,000 - 33,500
= $16,500
Answer:
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Explanation:
Consumer Price Index
The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.
Answer: Option B
Explanation: In simple words, aggregate demand refers to the total amount of goods and services that the consumers are willing to consume at a specific price and in a specified time.
A decrease in dollar value will result in less purchasing power for imports. This will result in less supply which will ultimately increase the price of the imported quantity, thus, resulting in decrease in aggregate demand.
A benefit of adopting the euro as a common currency is that it makes it easier to compare prices across Europe.
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When the same currency type is used in different group of people or different geographic locations, it refers to the common currency. In European Nations the common currency that is being used in Euro and in U.S the common currency used is dollar. There are many benefits that are associated with the usage of common currency.
It helps in reduction of transaction cost, Price transparency, expands markets, enhances the currency stability,etc.In the example given, the prices of roses at different regions of Europe were found to be different. The prices of the rises are expressed in Euros. The use of common currency here facilitates and makes easier to compare prices across Europe.
Buying products produced in another country is known as importing.
Exporting is selling products done in the country abroad.
Trade protectionism is a State's disposition that interferes with free trade in order to protect and encourage local production. It consists of barriers to importation, like heavy duties or prohibition of importing certain products.
Comparative advantage is the specialization in the production of a certain good that has lower opportunity costs of production than competitors. For example, a country with plains and grasslands has a comparative advantage for specialization in agriculture.
As you can see, importing is the correct answer, because it consists of buying goods and services abroad for consumption in one's country.
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