1. Positive economic growth means that the value of all goods and services produced in the economy increase by an unknown amount
2. growth in the amount of goods and services produced
Answer: Stock B
Explanation:
Use CAPM to calculate the required returns of both stocks.
Stock A
Required return = Risk free rate + beta * ( Market return - risk free rate)
= 5% + 1.20 * (9% - 5%)
= 9.8%
Stock B
Required return = 5% + 1.8 * (9% - 5%)
= 12.2%
Both of them have Expected returns that are higher than their Required returns so both of them are good buys.
The better buy would be the one that has more expected value excess over required return.
Stock A excess = 10% - 9.8% = 0.2%
Stock B excess = 14% - 12.2% = 1.8%
<em>Stock B offers a higher excess and is the better buy. </em>
Answer:
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Answer:
Categories of expenditures
1. I
Eric's employer upgrades all of its computer systems using U.S.-made parts.
2. C
Ginny gets a new refrigerator made in the United States.
3. X
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
4. G
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
5. M
Eric buys a bottle of Italian wine.
Explanation:
The US Gross Domestic Product (GDP) can be measured using the expenditure approach: Y = C + I + G + (X – M). This expenditure approach calculates GDP by evaluating the sum of all final goods and services purchased in the US economy. The components of the US GDP identified as “Y” in equation form include Consumption (C), Investment (I), Government Spending (G), and Net Exports (X – M) with X as exports and M as imports.
Answer:
a. The expression for the profit from the production and sale of x units:
Profit (P) = 250x - 20,000
b. If 4000 units are sold, Profit is $980,000
Explanation:
The company's revenue R (in dollars) from the sale of x units of its product is given by R = 320x and the total costs C (in dollars) of producing those x units is given by C = 70x + 20,000.
The expression for the profit from the production and sale of x units:
Profit (P) = Revenue - Cost = 320x - (70x + 20,000) = 250x - 20,000
If 4,000 units are sold, x = 4,000
Profit = 250 x 4,000 - 20,000 = $980,000