Answer:II) More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors. III) Investors choose the portfolio that maximizes their expected utility.
Explanation:The capital allocation line is a line created in a graph by investors in an economy to display or identify the potential risks involved in taking risky decisions. This line is one the determining factors to ensure that the investor has adequate knowledge about the risky nature of a capital investment.
Investors generally choose portfolios that guarantee maximum profits with reduced chances of loss. More risk averse investor will choose or opt for less risky portfolio.
Answer:
b. She receives $10,000
Explanation:
Taxes owed = (1/4 of income) - $15,000.
Taxes owed = (1/4 x 20,000) - $15,000.
= 5,000 - 15,000 => -10,000
Hence, she receives $10,000 from the government.
A negative income tax is a system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.
A. Bid/no bid decision
A "bid" is what contractors call their proposals, and in some cases it will not be worth it to even submit a proposal on a job. The stage where contractors decide if it is worth it is called bid/no-bid.
Answer:
The financial service requires a total payment of $94,800, distributed in 6 annual payments of $15,800. Once said amount has been paid, the company invests said money and after the course of 6 years, pays 4 annual payments of $35,000, that is, a total payment of $140,000. In this way, after 10 years of the first payment by the client, this operation ends with a monetary gain on the part of the client of $45,200 (140,000 - 94,800).
Now, to know how much interest is being offered by this investment, we must perform the following cross multiplication:
94,800 = 100
45,200 = X
(45,200 x 100) / 94,800 = X
4,520,000 / 94,800 = X
47.67 = X
As we can see, this operation offers a return of 47.67% in interests.
Answer:
$42,000
Explanation:
Direct Labor per Unit = $5.60
Total Planning Budget Units = 7,500 Units
Direct Labor for Planning Budget = Total Planning Budget Units * Direct Labor per Unit
Direct Labor for Planning Budget = 7,500 Units * $5.60
Direct Labor for Planning Budget = $42,000
So, the direct labor in the planning budget for May would be closest to $42,000.
