Gross income, or gross profit I think
Answer:
The answer is A. Treasury Bills
Explanation:
Treasury bills (T bills) are short-term security(debt security) backed by the national government. The maturity period is always less than a year or a year at maximum.
Since the customer's horizon is 3 months, he should walk up to his bank and buy treasury bills. It is always risk free.
Tbills is usually sold at discount to par value i.e the purchase price is less than the face value(value at maturity) of the bill.
Answer:
The answer is 5%
Explanation:
Solution
Given that:
A stock with a beta =2.0
The expected rate of return =21%
Market return turnout = 8%
Now,
Rf = risk free return
Rp = risk premium =Rm -Rf
β = 2.0
Thus
The expected return R = Rf +β *Rp
= Rf +β * (Rm -Rf)
R = Rf +2.0 (Rm -Rf)
=Rf + 2 times risk premium
So,
The market turns by 8%
R = Rf +2.0 (Rm -8%-Rf)
=Rf + 2 Rm-16%-2Rf
Then
The expected return is reduced by 16%
Hence,
21% -16% =5%
Therefore the expected rate of return on the stock is 5%
No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed <span>the same. It is true that </span>As a price for a product increases, the demand for that product will be most likely to decrease because consumers have to make more sacrifice without any additional income.
But, if you pay attention to the case above, you can see the total value of demand that marta has is still the same, which is $ 60
Answer: CORPORATIONS
Explanation: Limited liability characteristic of an entity states that the firm doing the business is a separate legal entity and the liabilities of owners is limited to a certain extent. Thus, if any individual makes a lawsuit against the company then they are suing that separate entity and not the owners of the company.
This provision is applicable only in case of corporations. In partnership and sole proprietorship the owners of the entity could be held personally liable for the liabilities of business and their personal assets could be taken into consideration in case of any default in payments of liabilities.
