Suppose that the index model for stocks A and B is estimated from excess returns with the following results:
RA = 2.8% + 1.00RM + eA RB = –1.0% + 1.30RM + eB σM = 18%; R-squareA = 0.27; R-squareB = 0.13 Assume you create a portfolio Q, with investment proportions of 0.40 in a risky portfolio P, 0.35 in the market index, and 0.25 in T-bill. Portfolio P is composed of 70% Stock A and 30% Stock B.
1. What is the standard deviation of portfolio Q? (Calculate using numbers in decimal form, not percentages. Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Standard deviation n/r incorrect %
2. What is the beta of portfolio Q? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Portfolio beta n/r incorrect
3. What is the "firm-specific" risk of portfolio Q?(Calculate using numbers in decimal form, not percentages. Do not round intermediate calculations. Round your answer to 4 decimal places.) Firm-specific n/r incorrect
4. What is the covariance between the portfolio and the market index? (Calculate using numbers in decimal form, not percentages. Do not round intermediate calculations. Round your answer to 2 decimal places.) Covariance n/r incorrect

Answers

Answer 1

1. To find the standard deviation of portfolio Q, follow these steps:

Step 1: Calculate the variance of portfolio P (σ²P) using the given information:
σ²P = wA²σ²A + wB²σ²B + 2wAwBcov(A,B)
σ²A = (1/R-squareA - 1)σM²
σ²B = (1/R-squareB - 1)σM²
cov(A,B) = 0 (Assuming no correlation between stocks A and B)

Step 2: Calculate the variance of portfolio Q (σ²Q):
σ²Q = wP²σ²P + wM²σM² + 2wPwMcov(P,M)
cov(P,M) = βPσM²

Step 3: Take the square root of σ²Q to find the standard deviation of portfolio Q (σQ).

2. To find the beta of portfolio Q (βQ), use the following equation:
βQ = wPβP + wMβM
βP = wAβA + wBβB

3. To find the firm-specific risk of portfolio Q, calculate the idiosyncratic variance of the stocks (using the R-square values) and then calculate the idiosyncratic variance of the portfolio.

4. To find the covariance between the portfolio and the market index, use the following equation:
cov(Q,M) = βQσM²

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Related Questions

All of the following would involve a debit memorandum except: A. a bank service charge. B. an NSF check. C. the cost of printing checks. D. interest earned.

Answers

All of the following would involve a debit memorandum except "interest earned", hence correct option is D. A debit memorandum is a document issued by a bank to notify a customer of a decrease in their account balance. Debit memorandums are typically used for:
A. a bank service charge
B. an NSF (non-sufficient funds) check
C. the cost of printing checks

Debit memorandum, also called debit notes, are corrections to invoices. If you accidentally submit an invoice that's too low, you can send a debit memorandum to correct it and increase the invoice after it's sent. The customer can then use the memorandum to adjust their books, as well. However, interest earned would not involve a debit memorandum, as it represents an increase in the account balance, not a decrease.

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What is the hazard? Chris works for a city public works department. One hot afternoon the temperature outside reached 92 degrees. While Chris was shoveling dirt in a vacant lot, he started to feel dizzy and disoriented. He fainted due to the heat.

Answers

Answer: dehydration

Explanation:

Answer:

dehydration and heat exhaustion.

Explanation:

I hope this helps! :)

If anyone can please help asap

If anyone can please help asap

Answers

Answer:

1. Negative externality: Jeff declined to buy his favorite chocolate bar because the price has increased.

2. Dollar vote: increased neighborhood crime is caused by a pawn shop.

3. Public goods: a freeway is available for all to use.

4. Positive externality: public education in the United States results in benefits for others around the world.

Explanation:

1. Negative externality: Jeff declined to buy his favorite chocolate bar because the price has increased. A negative externality arises when the production or consumption of a finished product or service has negative impact (cost) on a third party.

2. Dollar vote: increased neighborhood crime is caused by a pawn shop. A dollar vote describes how the consumer's purchasing power influences the type (quantity) of goods to be produced and supplied to the market.

3. Public goods: a freeway is available for all to use. It refers to any goods that is accessible and available to the general public at all times without an additional fee, charges or cost.

4. Positive externality: public education in the United States results in benefits for others around the world. A positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.

mention any five methods of doing off season vegetables farming,​

Answers

Answer:

the methods of doing off season vegetables farming are:-

Taking use of and utilising various agro-climatic conditionsImproved varieties are chosen.Adjustment of planting time.Making plastic tunnels, polythene houses, and permanent glass houses to provide controlled environmental conditions.

PLS I NEED THIS FAST

which piece of legislation granted rights to consumers to protect them from unethical business practices?
a. consumer bill of rights
b. american marketing association code of ethics
c. fair packaging and labeling act
d. united nations consumer protections

Answers

Answer: A.consumer bill of rights

Explanation:

The consumer bill of rights is one piece of legislation that grants customers rights to protect them from unethical commercial activities. Option A is correct.

What is the significance of consumer bill of rights?

The Consumer Bill of Rights protects consumers. Consumers have the right to be informed, the right to select, the right to safety, the right to be heard, the right to have problems remedied, the right to consumer education, and the right to service.

The Consumer's Bill of Rights is intended to make it simple to get and keep utility services. The Consumers' Bill of Rights states that utilities provide essential services that must be made available to all utility consumers on fair and reasonable conditions.

One form of law that offers customers rights to protect them from unethical commercial practices is the consumer bill of rights.  Therefore, option A is correct.

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In an effort to avoid bankruptcy, a firm may incur certain costs, called indirect bankruptcy costs.

Answers

In an effort to avoid bankruptcy, a firm may incur indirect bankruptcy costs. Indirect bankruptcy costs can significantly impact a company's financial position and viability

Indirect bankruptcy costs refer to the expenses and losses that a company may experience as a result of financial distress and the potential threat of bankruptcy. These costs arise from various sources and can have significant implications for the firm's overall financial health. Some common examples of indirect bankruptcy costs include:

1. Increased borrowing costs: When a company is perceived as financially unstable, lenders may demand higher interest rates or impose stricter loan terms, increasing the cost of borrowing.

2. Loss of customer and supplier confidence: Financial distress can lead to a loss of confidence among customers and suppliers, resulting in reduced sales and potential disruption in the supply chain.

3. Legal and consulting fees: Companies facing financial difficulties often require the services of legal and financial professionals to navigate bankruptcy proceedings, restructurings, or negotiations with creditors, incurring additional costs.

4. Employee morale and productivity: Uncertainty surrounding bankruptcy can negatively impact employee morale and productivity, potentially leading to higher turnover rates and decreased efficiency.

Indirect bankruptcy costs can significantly impact a company's financial position and viability. It is important for firms to actively manage their financial health, implement sound risk management strategies, and seek assistance early on to mitigate the potential indirect bankruptcy costs and improve the chances of avoiding bankruptcy.

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Hammers, screwdrivers, drills, and saws are _____ a construction worker uses.


-tasks

-skills

-tools

-qualifications

Answers

Answer:

are a - tool - construction workers use

the answer is tools

/hich type of task interdependence occurs when employees work independently ar

O a. pooled interdependence

O b. verbal interdependence

O c. reciprocal interdependence

O d. nonverbal interdependence

Oe. sequential interdependence

Answers

The type of task interdependence that occurs when employees work independently is "pooled interdependence."

In pooled interdependence, employees work independently on their own tasks, and the outputs are then combined to create a final product or service. This type of interdependence is often found in organizations where individual employees are responsible for completing a specific part of a project, and their work is then combined with the work of others to create the final product.

For example, in a software development project, programmers may work independently on their own sections of code, which are then combined to create a working software application. Each programmer is responsible for their own work, and the final product depends on the successful completion of each individual's task.

In contrast, reciprocal interdependence involves a back-and-forth exchange of information and resources among team members to complete a task, sequential interdependence involves a specific order of tasks that must be completed in order for the final product to be successful, and verbal and nonverbal interdependence are not typically used to describe types of task interdependence.

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Match each description from the RIASEC inventory with the correct title.

Match each description from the RIASEC inventory with the correct title.

Answers

We can actually deduce here that matching each description from the RIASEC inventory with the correct title, we have:

1. A. Independent and practical - Realistic

2. B. Logical and observant - Investigative

3. C. Creative and expressive - Artistic

4. F. Want to inspire, inform, train, and help others - Social

5. D. Prefer to influence, persuade and lead people - Enterprising

6. E. Organized, efficient and methodical - Conventional.

What is RIASEC?

RIASEC is actually known to be an acronym for Realistic, Investigative, Artistic, Social, Enterprising, and Conventional. These are six personality types that was identified by Dr. John Holland.

According to John Holland's theory, he believes that most people are one of six personality types which refers to being Realistic, Investigative, Artistic, Social, Enterprising, or Conventional.

Thus, we see that those that are:

Realistic are independent and practical.Investigative are logical and observant.Artistic are creative and expressive.Social are those that want to inspire, inform, train, and help others. Enterprising are those prefer to influence, persuade and lead people.Conventional are organized, efficient and methodical.

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Alan, an accountant in a law firm, is summarizing his company’s expenses and revenue in the form of an income statement. However, he has been told that the statement is being prepared for the business’s internal audience alone, that is, the firm’s management authorities. Which title should Alan give the income statement?

A.

statement of earnings

B.

statement of profits

C.

profit and loss account

D.

statement of incom

Answers

Answer:

profit and loss account

Explanation:

A profit and loss account  is a financial statement that summarizes the revenues, costs, and expenses incurred by a firm over a given period of time. It is an internal company document that  provide information about how a company was able to generate profit by increasing revenue, reducing costs, or both.

Hence, the title that Alan should give to his document is "Profit and Loss Account"

Answer:

Statement of Earnings

Explanation:

I took the quiz

You are reviewing your checking account balance of $800 after you've just sent in your rent check of $500. How much money is available for you to spend?

Answers

You are reviewing your checking account balance of $800 after you've just sent in your rent check of $500. The money that is available for you is $1300.

What we can do if we don't have sufficent balance?

If you had a check that you don't have sufficient funds for that has been run through the bank the bank will usually charge you an overdraft fee.

This means that you have arranged an overdraft loan/agreement with the bank. The bank will go ahead and pay the fund to the person or company you wrote the check to.

You will have a certain amount of time to put the money back into your account and pay the overdraft fee.

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Kellyn needs to move Slide 8 of his presentation up so that it becomes Slide 6. What best describes how he can do this using the slide thumbnails to the left of the main view? He right-click on Slide 6then choose "Insert Betore^ prime prime and select Slide 8 from the options given O He can right-click on Slide 8 and hold the mouse button while dragging up until the insertion point is after Slide 6 He can left -click on Slide 8 and hold the mouse button while dragging up until the insertion point is after Slide 5 . He can left -click on Shde then choose " Move To" and select Slide 8 from the options given

Answers

Answer:

The answer is "Option C".

Explanation:

In the given question, the numbering of the choices is missing, which is defined in the attached file please find it.

The slide Thumbnail implies its word used during PowerPoint presentations that denote the slide's tiny edition. It is the smaller version of a larger image that was simply a thumbnail. It has no long since digital image control thumbnails have been used, that's how much PowerPoint utilizes them.

Hold the slide until the slider is raised instead move it to sixth position to move to sixth position. All slideshow software allows a person to click on it and drag a slide only to spot.
Kellyn needs to move Slide 8 of his presentation up so that it becomes Slide 6. What best describes how

Which of the following could cause a decrease to the national debt in the usa?

a. decrease in property tax revenues
b. the USA enters a recession
c. the USA enters a period of expansion
d. the USA enters a war​

Answers

Answer:

C

Explanation:

A period expansion is a rise in economic activity rises which substantially, spreads across the economy

what is the presumed era for the third stratum

Answers

The Presumed era of the Third Stratum is regarding the cognitive ability.

What is the 3 stratum theory?

The American psychologist John Carroll introduced the three-stratum theory of cognition in 1993. It is based on a factor-analytic investigation of the association of individual-difference variables using data from more than 460 datasets, including information from psychological testing, academic performance, and competence assessments.

According to the three-stratum hypothesis, there are three categories into which individual variances in cognitive capacity may be divided: narrow, wide, and general.

Therefore, it can be concluded that Regarding cognitive capacity, the Third Stratum is assumed to have existed.

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What type of relationship do a lawyer and a client have?

A) an administrative relationship
B) a labor relationship
C) an agency relationship
D) a tort relationship

Answers

Answer:

An Agency relationship but it's D on Edge

Explanation:

The type of relationship a lawyer and a client have is an agency relationship. Thus option (C) is correct.

What is an agency?

An agency is a business, firm, or organization that provides a specific service. Sometimes but not always the agencies also work on behalf of another group, business, or person.

Some agencies work for the private sector  like an advertising agencies, employment agencies, and travel agencies. Some are government agencies for example they are part of the public sector.

The advertising agencies, add agencies, or creative agencies are firms that focus on creating, planning, and handling advertising. In fact, some employment agencies belong to the government; therefore, they may also be in the public sector.

The type of relationship a lawyer and a client have is an agency relationship. Therefore, option (C) is correct.

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Explain the difference between the elements of the communication process and the Communication process.​

Answers

please gimme brainliest!

Answer:

seven

Explanation:

Seven major elements of communication process are: (1) sender (2) ideas (3) encoding (4) communication channel (5) receiver (6) decoding and (7) feedback.

Communication may be defined as a process concerning exchange of facts or ideas between persons holding different positions in an organisation to achieve mutual harmony. The communication process is dynamic in nature rather than a static phenomenon.

What change could be considered an effective sign of economic recovery from the Great Recession?

employment level in architectural and engineering services at 18,000 jobs
unemployment levels at 8 percent
architecture and construction industry demonstrating a sustainable level of growth
the gross domestic product (GDP) growing at .5 percent

Answers

Answer:

The answer is C. architecture and construction industry demonstrating a sustainable level of growth

Which method of calculating inventory cost allows a business to store
inventory without indicating which batch it belongs to?
A. weighted average method
B. last in, first out (LIFO)
C. first in, first out (FIFO)
D. weighted average sales price method

Answers

first in, first out (FIFO) method of calculating inventory cost allows a business to store inventory. Inventory refers to all of the items, goods, commerce, and materials held by a company for the purpose of reselling in the market for a profit.

For instance, if a newspaper seller uses a vehicle to deliver newspapers to consumers, only the newspaper is considered inventory. The automobile will be considered an asset FIFO. The inventory is classified as an asset on the university's balance sheet. The inventory can be any physical property, merchandise, or other sales items that are retained for the future resale.

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Explain how someone can be employed and still live below the poverty line.

Answers


- person working a part time job but seeking full time employment
-had a job but earns low wages
-people that have large families
-member of family with serious health issue

What sum of money will grow to $2443.96 in nine years at 7.8% compounded semi-annually? The sum of money is $ (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answers

We may use the compound interest calculation to get the amount that will increase to $2443.96 in nine years at a compound interest rate of 7.8% compounded semi-annually:

A = P(1 + r/n)nt

Where: A = the investment's future worth ($2443.96 in this case),

P stands for the primary (or initial payment).

r = the yearly interest rate (0.078 in decimal notation, or 7.8% annually).

(Semi-annually, thus 2) n is the number of compounding periods every year.

9 years are represented by the numeral t.

Let's figure out P.

2443.96 = P(1 + 0.078/2)^(2*9)

2443.96 = P(1.039)^18

P = 2443.96 / (1.039)^18

We calculate P to be $1221.82 (rounded to the nearest penny) using a calculator.

Consequently, the amount that will increase to $2443.96 in nine years at a 7.8% compounded growth rate

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How should you dress for a phone interview? (Site 1)
online content

Answers

Answer:

You should at least have a nice top on because only the camera will see that. If you are a girl you could just wear a dress, probably a black one because that is what I wore to my interview yesterday because there is no pattern or anything it's just a plain black one, but that was in person. if you're a guy you need to wear a suit and tie,but you could probably just wear shorts because they won't see the bottom half of you

Explanation:

I hope this helps out a little bit :-)

An interview is a formal process by which an employee is assessed for his/her performance by the employer.

For a phone interview, one should be dressed properly as the interviewer can see you through the camera.

For a girl, you should be dressed nicely and no revealing or extra shiny clothes should be wore.

In the case of a man, one should be properly dressed in suits or formal shirts.

Try to wear dark black or blue coloured clothes and sit in a properly lighted area.

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An initial deposit of $5000 is put into an account that earns 4% interest, compounded annually. Each year, an additional deposit of $5000 is added to the account. What is the value of the account after the tenth deposit if no withdrawals or additional deposits are made

Answers

Answer:

$60,030.54

Explanation:

an undergraduate sport management education prepares students for

Answers

Basic sports management courses prepare students for entry-level positions.

Coursework in sports management majors typically prepares students for careers in amateur, college, and professional sports organizations. These students can benefit from a wide variety of sports-related opportunities after completing a sports management program.

Sports Management is a business line focused directly on sports and leisure. Various subjects flow into sports management, including administration, finance, law, and ethics. A degree in sports management can lead to career opportunities in the world of sports and leisure.

This course consists of his three basic components: General education courses, the core of business management, the core of sports concepts. These program components provide a foundation for developing the knowledge and skills necessary for sports management.

A traditional bachelor's degree consists of three components: General Education, Core Subjects, Electives. 

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what is business operation scheme model?

Answers

it's your answer pls mark me brainleast

it may help you

what is business operation scheme model?

Will mark Brainliest
Type the correct answer in the box. Spell all words correctly.
Which activity involved in the distribution function of a business concerns the supply of products from the manufacturer to the retailer?
(________________) is a crucial part of distribution since it is concerned with ensuring that the product(s) reaches the retailer or distributor.

Answers

Answer: Distribution Activities means the following activities to be performed by Seller or its Affiliates during the Distribution Period pursuant to the provisions of Section 4.6: (i) the receipt and processing of purchase orders for the Products; (ii) providing warehousing services for the Products; (iii) shipping of ...

Explanation:

Answer: Supply chain management

Explanation:

What are some good colleges in New Orleans that arent expensive??

Answers

Answer:

southern university, Dillard university, university of new orleans

A small business earns a profit of $6500 in January and $17,500 in May. What is the rate of change in profit for this time period? Explain.

Answers

The rate of change in profit for this period is 169.23%.

What is the rate of change?

The rate of change shows the ratio or proportionality by which a value changes in relation to another.

We can determine the rate of change by dividing the difference in value by the former value and multiplying the quotient by 100.

Profit earned in January = $6,500

Profit earned in May = $17,500

Change in profit = $11,000 ($17,500 - $6,500)

Rate of change = 169.23% ($11,000/$6,500 x 100)

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Scott and Laura are married and file a joint tax return. Laura owns a sole proprietorship (not a "specified services" business) that incurs qualified business income of $300,000. The proprietorship pays W–2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $381,400 (this is also their modified taxable income What is their tentative QBI based on the W-2 Wages/Capital Investment Limit? 20,000 Determine their allowable QBI deduction. 75,000 X

Answers

Solution :

QBI           300000        W-2 wages      40000

Taxable    3814000      QBP                 10000

income

                                      W-2 limit

Phase                           greater of

out MFJ

Start          315000      50% of W-2       20000

Finish        415000    or 25% of W-2     10250

                                  + 2.5% of QBP

                                  Selected             20000     Being higher      As part 1

Taxable income above phase out

\($\frac{381,400-315000}{100000}$\)        66%

Now applying gross deduction and phase out

Gross deduction        Being 20% of QBI      = 66000

Less : wage limit of QBI                                 - 20000

Phase out %                                                     x 66%

Phase out amount                                           30,360

Final deduction = gross deduction- phase out amount

                         = 66,000 - 30,360

                         = 35,640

You are starting a shopping service for elderly people in your community who cannot leave their homes. Write a mission statement that clearly communicates the purpose of your business.

Answers

To write a mission statement about starting a shopping service for elderly people in your community, begin writing what your company does. In this case, start with "My company's purpose is to start a shopping service for elderly people in my community (name of your community)."

Then follow up by describing how your business plan to operate its services.

Here, you can state that "My company's purpose is to provide shopping services that allow all elderly people to experience easy and comfortable life."

Thus continue by adding the reason your company operates its services.

Finally, your mission statement can look like this:

At Brainly (name of your company), we provide shopping services to make elderly people experience an easy and comfortable life.

Hence, in this case, it is concluded that a mission statement should have the purpose, values, and goals of the company.

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How is a market version of utilitarianism different from an administrative version?
a. The market version ensures that experts establish the safety standards a business is expected to meet.
b. The market version uses social sciences to predict consequences.
c. The market version requires a government body to regulate business.
d. The market version produces those goods that the consumers want.

Answers

The market version of utilitarianism produces those goods that the consumers want.
The administrative version of utilitarianism is a bit different from the market version.
It requires a government body to regulate business.

Utilitarianism is a moral theory that is based on the belief that actions should be done to maximize the overall happiness of the affected parties. There are two versions of utilitarianism, namely the administrative version and the market version.
The administrative version of utilitarianism is when a governing body establishes rules and regulations that dictate how people should behave in society.
The administrative version also uses scientific evidence to create laws that will benefit society. For example, a government can establish a law that dictates how much alcohol a driver can consume before operating a vehicle.
On the other hand, the market version of utilitarianism is when the free market determines the behavior of individuals in society.
The market version of utilitarianism ensures that the consumers decide what is produced by the producers.
For example, if the consumers require a product that is environmentally friendly, the producers will produce that product to meet the consumer's needs.The market version of utilitarianism uses social sciences to predict consequences.
The market version ensures that experts establish the safety standards a business is expected to meet.
The market version does not require a government body to regulate business, but rather, the free market does that.

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Other Questions
The temperature at which a substance in its solid state melts into the same substance in a liquid is known as a group of civil engineers who share their knowledge and insights with other civil engineers is an example of a a. task force. b. cross-functional team. c. virtual organization. d. structured organization. e. community of practice. Natalie, a recent high school graduate, attends a college near her hometown. Which of the following degree programs could she be working toward? (5 points) Associate of Arts Doctor of Philosophy Juris Doctor Master of Sciences Of these three bonds, which bond is the strongest? a. N Nb. N = Nc. N - Nd. They are all of equivalent strength. business day (or days) prior to the ex-dividend date is the first date on which you buy stock shares but won't receive the next dividend that the firm plans to pay. Multiple Choice pints - zero - one - seven - five - three bautista launched a line of gourmet butters made from pistachios and other exotic nuts. as his brand has grown, bautista is finding it difficult to operate a commercial kitchen in a cost-effective manner. which quality improvement technique would benefit bautista? multiple choice enact statistical process controls by doing more product quality sampling. reduce cycle time by only producing the flagship pistachio-based product. and innovation are making small improvements and additions to existing products, processes and services. radical, extreme incremental, radical distinctive, incremental radical, distinctive whats the answer ? *CULINARY*What kind of cuisine is French and focused on fine food presentation like haute cuisine, but it is also generally characterized by lighter, moredelicate, dishes and a strong focus on beauty?A. globalB. nouvelleC. fusionD. vegan Which of the following is not a compound?Responses A.H2O b.CO2 C. N2 D.CH4 What is the average rate of change for this exponential function for the interval from x = 7 to x = 8? The Age of Pericles in Athens and the Gupta Empire in India both experienced a golden age which resulted in how does higher order conditioning help to predict the cs? find the zscore which the area to the left is 0.46 Based on the punnet square above, what is the probability that an offspring from this cross will have a homozygous recessive genotype ? A. 100%B. 50%C. 25%D. 0% WILL MARK YOU BRAINLIEST Which of the following on-set problems would an electrician most likely solve? The f-stop of camera A is miscalculated, causing an overexposure of the shot. A chandelier being used on the set is missing two bulbs. One of the wall outlets on the back wall of a studio set is not channeling electricity. An interior location scene has too much natural light and the director wants to place a flag. If x5-X grandparents, tall people, and undergraduates are all examples of ________. Which protocol enables you to control a remote computer from a local computer over a network?