1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svlad2 [7]
2 years ago
15

Suppose investor 1 and investor 2 each has $100 wealth to invest in the two risky assets and the risk-free asset, and suppose th

at the amount of money investor 1 and investor 2 borrow and lend at the risk-free rate must sum up to zero; that is, there is no outside bank in this economy who lends to investors at the interest rate. In this case, how do you adjust the level of the interest rate so that the total dollar demand from these two investors on the risk-free asset becomes zero
Business
1 answer:
Lilit [14]2 years ago
5 0

Answer:

Explanation: hey, do your best i think you can do good

You might be interested in
Unhappy customers equal<br> Less Profit <br> More Profit
zhenek [66]

It equals less profit

3 0
2 years ago
The process of asset transformation refers to the conversion of:_______
kondaur [170]

Answer: c. Risky assets into safer assets

Explanation:

The process of asset transformation refers to the conversion of risky assets into safer assets. Asset transformationa is simply a form of transformation in which financial institutions like banks use deposits in the generation of revenue through the pooling deposits in order to make loans. It has to do with transforming bank liabilities into bank assets.

6 0
3 years ago
There are only three stocks in the economy. Stock A has 20 shares outstanding and a price per share of $10. Stock B has 15 share
gregori [183]

Answer:

Market value of stock A = 20 shares x $10 = $200

Market value of stock B = 15 shares x $3   = $45

Market value of stock C = 10 shares x $5   = $50

Total market value                                          $295

Amount to invest in stock A

= $200/$295 x $5,000

= $3,389.83

Explanation:

In this case, we will calculate the market value of each stock by multiplying the number of each stock by their corresponding market prices.

Thereafter, we will divide the market value of stock A by the total market value multiplied by amount available for investment ($5,000).

7 0
3 years ago
Historical Art is a new business. During its first year of operations, credit sales were $50,000 and collections from credit sal
Igoryamba

Answer: $1000

Explanation:

First, we calculate the amount if bad debt expense which will be:

= 3% × $50000

= $1500

Therefore, the balance of accounts receivable at the end of the first year will be:

= Amount of bad debts expense - Account written off

= $1500 - $500

= $1000

5 0
3 years ago
If the same number of units of good Y must be given up as each successive unit of good X is produced, then the PPF for these two
andrey2020 [161]

Answer:

PPF : Downward Sloping Straight Line

Explanation:

PPF is the locus of product combinations that an economy can produce, given resources & technology.

It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.

Marginal Opportunity Cost (Slope of PPC): is ratio of a good sacrifised to gain each additional unit of the other good.

∆ Good sacrifised / ∆ Good gained

If this ratio is same i.e constant amount of a good is sacrifised to gain an additional amount of the other one , the slope of PPC is constant & it is a straight line

Eg : Good1    Good2     MOC [∆Good2/∆Good1]

      0               20             _        

      10             10           -10/10 = -1                  (10-20)/(10-0)

       20              0           -10/10 = -1                   (0-10)(/20-10)

So , same (1) good 2 is sacrifised to attain a good 1 each time.

However Generally: MOC is increasing , because of assumption that resources are unequally efficient in various goods production - shifting good from efficient to inefficient increases sacrifise each time. This makes PPC usually concave.

5 0
3 years ago
Other questions:
  • Suppose there is an ordinary deductible of $40 and the maximum payment by the insurer is $130. Determine the standard deviation
    6·1 answer
  • Why is it important to add images charts and graphs into reports? what is important to illustrate reports with visuals?
    6·2 answers
  • The term "opportunity cost" is best defined as:
    6·1 answer
  • Green Haven is an organization whose earnings are exempt from federal and state income taxes. Individuals who contribute money t
    9·1 answer
  • Metro Facilities, Inc., contracts to sell a parking garage to Nouveau Property Company. The contract provides that if Metro does
    10·1 answer
  • From the ledger balances below, prepare a trial balance for Cullumber Company at June 30, 2017. All account balances are normal.
    8·1 answer
  • Colorado Corporation's financial statements include the following information:
    5·1 answer
  • On July 1, 2021, Clearwater Inc. purchased 9,300 shares of the outstanding common stock of Mountain Corporation at a cost of $21
    10·1 answer
  • The demand for this type of good rises when income falls and falls when
    15·1 answer
  • When there is disagreement among members at the same level of marketing channels, such as when best buy and sears engage in a pr
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!