stock a is expected to return 14 percent in a normal economy and lose 21 percent in a recession. stock b is expected to return 11 percent in a normal economy and 5 percent in a recession. the probability of the economy being normal is 75 percent and being recessionary is 25 percent. what is the covariance of these two securities?
Answers
The covariance of these two securities is -3.75%. The covariance of two securities is a measure of how much the returns of one security tend to vary with the returns of another.
In this case, we can calculate the covariance by taking the expected return of stock A (14%) multiplied by the probability of a normal economy (75%), then subtract the expected return of stock B (11%) multiplied by the probability of a normal economy (75%), then add the expected return of stock A (-21%) multiplied by the probability of a recession (25%), then subtract the expected return of stock B (5%) multiplied by the probability of a recession (25%).
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Related Questions
Explain using a worked example how a business can use knowledge of price elasticity of demand when making pricing decisions.
Answers
The link between price and demand and how changes to one will impact the other are measured using the price elasticity of demand. Consumer demand will react to price increases differently for each commodity.
Any changes in pricing will have a greater effect on demand if a product is elastic. Products with numerous replacements and no brand loyalty typically have large elasticities. For instance, buyers may simply check the pricing of several kinds of toilet paper at the grocery store.
Therefore, when making crucial pricing decisions, it's imperative to comprehend those differences. Price elasticity has significant benefits for merchants when used properly.
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economists who believed that the phillips curve represented a structural relationshiploading... believed that the curve represented part 2
Answers
Option a: Economists who believed that the Phillips curve represented/depicted a structural relationship believed that the curve represented permanent trade-off between unemployment and inflation.
The Phillips curve, named after William Phillips, is an economic theory that suggests a link between falling unemployment and rising wage growth. Although Phillips did not state it explicitly, his statistical results clearly showed a connection between employment and inflation. After Paul Samuelson and Robert Thoreau clarified this relationship, Milton Friedman and Edmund Phelps established the theoretical framework.
Unemployment and inflation have been shown to be balanced in the short run, but not in the long run. Friedman and Phelps argued that the Phillips curve was valid only in the short term and that a long-term inflation strategy would not reduce the unemployment rate in 1967 and 1968.
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Complete question:
Economists who believed that the Phillips curve represented a structural relationship believed that the curve represented
a permanent trade-off between unemployment and inflation.
a temporary trade-off between unemployment and inflation.
a cyclical trade-off between unemployment and inflation.
no trade-off between unemployment and inflation.
Which hypothesis of mechanism of coral boring was supported by the investigation?
Answers
The hypothesis of mechanism of coral boring was supported by the investigation is Acid secretion.
What is Acid secretion?Acid secretion serves as a mechanism that is been initiated by food, however this could come from taste of food effects vagal stimulation which could occur from the gastrin-secreting G cells.
This can be found in the distal one third (antrum) of the stomach, The hypothesis of mechanism of coral boring was supported by the investigation is Acid secretion.
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This jacket is so thin. It can't possibly keep out the rain."(Use the boomerang method.)
Answers
Answer:
The jacket is thin because it uses a fiber called thinsulate that enables it to have the lightest weight but is also the warmest.
Explanation:
In general marketing, the boomerang method refers to the 'reconstruction' of the customer's objection into the main reason for buying. In other words, using the same excuse that a customer has about a product to entice him/her to buy that product by reframing it as a selling point is known as the boomerang method.
In the given scenario, the customer's objection is about the thinness of the jacket can be used as a selling point by the salesman by stating that the lightness of the jacket is what makes it a good product. So, if the seller tells the customer "the jacket is thin because it uses a fiber called Thinsulate that makes it thin but also warm", then that will make it an interesting and important factor for the customer to like the product more.
What effect does inflation have on purchasing power.
Answers
when a communication leads consumers to believe something about the product that is not true even though it doesn't present a direct false claim, this is known as
Answers
When a communication leads consumers to believe something about the product that is not true even though it doesn't present a direct false claim, this is known as D. claim-belief discrepancy
In the field of business, a claim-belief discrepancy can be described as a kind of deception in which such a claim about a company is made that is not true but also is not false.
By claim-belief discrepancy, an assumed deceptive belief is created about the product that is not correct, and also one cannot say that it is false.
The claim-belief discrepancy is a strategy that is used by business owners in order to make consumers more attracted to their product.
Although a part of your question is missing, you might be referring to this question:
When a communication leads consumers to believe something about the product that is not true even though it doesn't present a direct false claim, this is known as
A. a direct claim
B. deceptive advertising
C. interpretation discrepancy
D. claim-belief discrepancy
E. inferential discrepancy
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FILL IN THE BLANK. ____ is not a determinant of translation exposure. O The local currency denominated contractual cash flows of the MNC. O The MNCs degree of foreign involvement. O The accounting methods (FASB rules) used by the MNC. O The locations of foreign subsidiaries.
Answers
The accounting methods (FASB rules) used by the MNC is not a determinant of translation exposure.Translation exposure refers to the risk faced by companies that do business in foreign currencies.
It arises when a company’s financial statements need to be converted from a foreign currency into the company’s reporting currency.In order to manage this risk, a company needs to understand the factors that affect translation exposure. These factors include the degree of foreign involvement, the locations of foreign subsidiaries, and the local currency denominated contractual cash flows of the MNC. However, the accounting methods (FASB rules) used by the MNC are not a determinant of translation exposure.
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For an FBLA-PBL member who is interested in running for a state or national
office, what FBLA-PBL activity would be the most likely to help them?
O A. Participate in the Institute for Leaders
B. Network with local business people
C. Participate in local community service
D. Compete at the National Leadership Conference
SUBMIT
Answers
Answer:A
Explanation: i did the test
what is a benefit of obtaining a personal loan quizlet
Answers
A personal loan is a type of loan that can be used for a variety of purposes such as debt consolidation, home improvements, medical expenses, or even to fund a vacation. One of the main benefits of obtaining a personal loan is the flexibility it provides. Unlike other types of loans that are typically tied to a specific purpose, personal loans are unsecured and can be used for anything you need.
Another benefit of obtaining a personal loan is that they often have lower interest rates compared to credit cards or other types of loans. This can be particularly helpful if you are trying to consolidate high-interest debt into one loan with a lower interest rate.
Additionally, personal loans offer a fixed repayment term and monthly payment, making it easier to budget and plan for repayment. This can be helpful if you need to make a large purchase or cover unexpected expenses.
Overall, a personal loan can be a useful financial tool for a variety of reasons and can provide flexibility, lower interest rates, and predictable repayment terms.
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Personal loans offer benefits when used for investments with long-run payoffs, such as education or business ventures. They provide the required capital for significant purchases or investments that can lead to increased profits or earnings in the future. They also offer immediate financial relief for those anticipating a rise in income.
Explanation:Obtaining a personal loan has several benefits, particularly when you are making an investment with potential long-run payoff. Personal loans can provide the necessary capital for significant expenditures where future returns are expected (e.g. college education, business investment).
For instance, borrowing for a college degree can be a wise move. The increased earning potential and higher wages associated with a higher level of education often allows for the repayment of the loan while still improving one's financial position. Similarly, businesses can take loans to purchase equipment or invest in projects that can increase output and profits enough to cover the repayment of the loan and further advance the business.
Furthermore, personal loans can also provide immediate financial relief for those in need (like college students with low or no income) who anticipate greater financial stability in the future. This relief helps to cover current expenses, with the understanding that the loans can be repaid once income levels increase.
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Give four future of labour
Answers
MARK "BRIANLIEST!"
1. Government. Government holds much sway over the free markets. ...
2. International Transactions. The flow of funds between countries effects the strength of a country's economy and its currency.
3. Speculation and Expectation.
4. Supply and Demand.
MARK "BRIANLIEST!"
When comparison shopping, all of these hint at a good deal EXCEPT _____________________.
Answers
Answer: the sale price is the cheapest available.
Answer is …. there are more positive customer reviews than negative reviews.
Explanation:
Which type of business does not hold owners accountable for the debts of
the business?
OA. Sole proprietorship
OB. LLC
OC. Partnership
A
OD. Private company
Answers
Answer:
Limited Liability Company (LLC)
Explanation:
A limited Liability Company (LLC) is a business structure in the United States that protects its owners from the personal responsibility for its repayment of debts and liabilities. It is a hybrid entity that has the characteristics of a corporation, partnership and sole proprietorship. The regulation of LLC's varies from one state to another. An entity or individual can be a member of an LLC with notable exceptions from banks and insurance companies. The primary reason for registering a business under LLC is to limit the personal liability of the owners as well as the partners. LLC may have some attractive features but they also possess some great disadvantages as well. Depending upon the state law, an LLC may be dissolved upon the death or bankruptcy of a member.
The production era philosophy was to produce as much as possible because the _____ was unlimited.
Answers
The production era philosophy was to produce as much as possible because the market was unlimited.
During the production era, which lasted from the late 1800s to the early 1900s, businesses were focused on producing as much as possible. This was due to the belief that the market was unlimited and that demand would always exceed supply. This philosophy was based on the idea that economies of scale would lead to lower production costs, and that lower prices would encourage more consumption, creating a cycle of growth and prosperity for the business.
However, this philosophy proved to be unsustainable, as overproduction eventually led to market saturation and declining profits.
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Select all the correct answers. why do nations practice protectionism? to prevent loss of jobs and livelihoods to improve relations with other nations to encourage growth of new industries to give consumers more choices to retaliate against unfair trade practices
Answers
The nations practice the policy of protectionism in order to safeguard the jobs and livelihood, maintain good relations with other nations, and fight against unfair practices.
Options A, C, and E are the correct answers.
What is protectionism?Protectionism is a kind of policy exercised to regulate imports from outside by making them costly.
Under the policy of protectionism, the imports can become expensive by putting trade restrictions like charging tariffs, putting imports quotas, etc. this decrease the profitability of imported goods. This policy safeguards the workers, companies, and manufacturers when engaging in competition with other nations.
Therefore, the explanation provided in points A, C, and E are specifying the reasons for the use of protectionism policy by nations.
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If the cost of electricity doubles in the area where the Morgans live, which of the following is most likely to be
true?
A. It would be more advantageous for them to wash clothes at home and dry them at the laundromat.
B. It would be more advantageous for them to buy a washer and dryer to save money.
C. It would probably make no difference because the laundromat is likely to increase its prices to cover
increased costs.
D. It would be even more advantageous for them to use the laundromat rather than have a washer and
dryer at home.
5 of 10
Answers
If the cost of electricity doubles in the area where the Morgans live, It would probably make no difference because the laundromat is likely to increase its prices to cover increased costs. Option C. This is further explained below.
What is Pricing?Generally, Decide the payment amount for the service (something offered for sale).
In conclusion, Even if the price of power doubles where the Morgans reside, the laundromat's pricing will almost certainly rise to match the higher expenses.
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What do you think was the reasons of Ms. Sagrado in coming up with a pot as business?
Answers
You must speculate as to Ms. Sagrado's motivations for starting a marijuana-related business because she didn't anticipate the success of her venture and appears to be overjoyed about it in the paragraph.
Business, finance, marketing, sales, and human resources entry-level positions can be attained with a bachelor's degree in entrepreneurship. They also offer the entrepreneurial abilities required to launch a business.
Your best work, service to others, and Conditions that are helpful include interesting work that allows you to experience "flow," encouraging coworkers, the absence of significant drawbacks like unjust compensation, and a job that suits your own schedule.
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What is the primary duty of a public relations specialist?
A. To create advertising concepts
B. To deliver marketing messages
C. To communicate business activities with the press
D. To oversee graphic design tasks
Answers
Answer:
B. To deliver marketing messages
Explanation:
A public relation specialist is a professional who portrays goods and services in a good light/form to the public. This helps to create awareness and encourages the general public to buy such products.
Public relation specialist ensures that the company has a good relationship between the stakeholders, staffs and the general public thereby avoiding any type of clash.
Describe factors that encourage conspicuous
consumption by the purchase of status sym-
bols.
Answers
Veblen's initial thesis said that better social standing and peer recognition were the two key factors influencing ostentatious consumption.
Conspicuous consumerism is the act of acquiring things or services specifically with the intention of flaunting one's affluence. When publicly exhibited products and services are too expensive for other people in a person's class, conspicuous spending is a way to demonstrate one's social position.
What is the conspicuous consumerism theory?
Conspicuous consumption is defined as. Displaying extravagant riches in order to improve one's standing and reputation in society is known as conspicuous spending.To Learn more about conspicuous consumption, click the links
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A corporation announces a dividend of $.10 per share. If you own 1,500 shares of stock, how much money in dividends will you receive?
Answers
$150 money in dividends will you receive. That is $.10 per stock *1,500 shares= $150.The total of a company's declared dividends issued for each outstanding investors share of its common stock is known as the dividend per share (DPS).
The amount is determined by dividing the total dividends paid out by a company over a period of time, typically a year, including interim dividends, by the total number of outstanding ordinary shares issued. DPS is a crucial statistic for investors since the amount of dividends a company pays out directly translates to shareholder income. It is the simplest calculation an investor may uses.
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Suppose you are buying your first condo for $180,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6. 5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?.
Answers
If we arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6. 5% nominal interest rate, with the first payment due in one month. The monthly payments amount be $1,042.91
Purchase Price of Condo $180,000.00
Down payment $15,000.00
Loan amount $165,000.00
Terms in years 30
Annual interest rate 6.50%
Monthly interest rate 0.5417%
No. of monthly loan payment 360
Monthly payment amount $1,042.91
The term "Monthly Payment Amount" refers to the total of the interest payable under this Note on the portion allocated as Fixed Rate Tranche A at the Fixed Interest Rate in the amounts for each such Payment Date set forth on Annex 1 attached hereto and incorporated herein by this reference or as provided by Payee to Maker in connection with the initial Fixed Interest Rate Interest Period from and including the First Payment Date through the Maturity Date.
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Examine two components of the moa and assess how each contributes to an effective imc.
Answers
The two parts of the Market Opportunity Examination (MOA) are Customer Analysis and Channel Selection.
Customer Analysis is an indispensable part of MOA that includes understanding the objective clients' necessities, inclinations, ways of behaving, and purchasing propensities. It assists organizations with fostering an exhaustive comprehension of their main interest group and permits them to tailor their showcasing messages and correspondence channels in like manner.
Channel Selection empowers organizations to make customized messages that reverberate with their objective clients. By understanding clients' inclinations, problem areas, and inspirations, associations can foster fitted correspondence that talks straightforwardly to their crowd's requirements, expanding the adequacy of the IMC lobby.
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We evaluate historical sources by determining if they are valid or reliable.
True
False
Answers
Answer:
True
Explanation:
We evaluate historical sources by determining if they are valid or reliable. The given statement is True.
Why is it important to evaluate historical sources?You are prompted to use critical thinking skills while evaluating information to consider the authority, timeliness, point of view, and bias of various information sources. A book, article, or website is not always a trustworthy source of knowledge just because your search parameters are met by it.
Evaluating historical sources is an essential aspect of historical research, and determining their validity and reliability is crucial to understanding the past accurately. Validity refers to the accuracy and truthfulness of the information provided by the source, while reliability relates to the consistency and credibility of the source. Both validity and reliability are necessary to ensure that the historical source is trustworthy and can be used to support historical claims.
Thus, the mentioned above-given statement is true.
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Please help. Calculate weekly labour cost!. Easy
Answers
Weekly labor cost per unit = total weekly labor cost/ total units
60,000. / 2000 = 30
Answer: £ 30 per unit
a takeover cannot be challenged on the ground that it would result in a substantial increase in the acquiring corporation's marker power. true false
Answers
False: A takeover cannot be challenged on the ground that it would result in a substantial increase in the acquiring corporation's market power.
This is a complex issue and requires a long answer. In general, a takeover can be challenged on the grounds that it would result in a substantial increase in the acquiring corporation's market power.
The specific circumstances of the takeover and the relevant laws and regulations will play a role in determining whether or not such a challenge is successful.
Generally speaking, antitrust laws exist to prevent monopolies and ensure competition in the market, so a takeover that would result in a significant increase in market power could potentially violate these laws.
However, there may be exceptions or mitigating factors that could make such a takeover permissible.
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As Jake and Rolando explore the possibility of starting an endurance training facility for youth athletes, they collect demographic and lifestyle information about the families who would potentially buy their service. This exercise will help to better identify their Multiple Choice buying group. target market. competition. marketing concept.
Answers
Answer:
Target market
Explanation:
Target market is defined as a group of people or businesses who are receive the marketing efforts of a company.
They satisfy the criteria that is set for a.product that is being promoted.
In the given scenario the ideal target market are youth athletes.
Collection of demographic data will help them select clients based on their age.
So they can get across to youths in the families.
Very often, failure to record a liability means failure to record a(n)
a. footnote.
b. asset conversion.
c. revenue.
d. expense
Answers
Very often, failure to record a liability means failure to record a(n) expense.
What is expense?An expense is an item that generally requires an outflow of money or some form of property to another person or group in payment for an item, service, or other category of expense.For tenants, rent is an expense.For students and parents, teaching is a cost.Expenses are the operating costs incurred by a business in order to generate revenue. It is simply defined as the cost you have to spend to get something. As the saying goes, “It costs money to make money”.Expenses in accounting refer to the money and expenses a business spends to track revenue. Simply put, out-of-pocket expenses are the costs associated with running a business that together contribute to the activities necessary to generate a profit.To learn more about expense from the given link:
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(This class is called life management)
A basic decision that you make every day about every day things are known as:
A) Major Decisions
B) Routine Decisions
C) Classic Decisions
D) Life altering decisions
Answers
Answer:
B is answers for the question
Explanation:
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how to right a conclusion for human resources
Answers
Answer:
The conclusion should state once again the problems and solutions that you have arrived at during your research. Learning how to write a human resources essay requires you to be keen on making a good summary of the interpretations and observations described in the main body of the paper.
Explanation:
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Which of the following is used by a seller to deceive a buyer? a. Bait and switch b. Contest c. Display d. Introductory offer Please select the best answer from the choices provided A B C D.
Answers
That which is used by a seller to deceive a buyer is: a. Bait and switch
Bait and switch is a tactic that is used by entrepreneurs to attract customers. They tell them to purchase a good at a low price.
However, when they come to buy, they are encouraged to buy a good that costs more.
So, in this way, the bait and switch tactics is used by sellers to deceive the buyers.
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Answer:
A. Bait and Switch
Explanation:
edge 2022
Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this
Answers
Yes, she can make the purchase and have money left over.