The correct answer is d. The increase in the number of discouraged workers increased the unemployment rate and reduced the size of the labor force.
Discouraged workers are individuals who have given up looking for work due to a lack of job opportunities or other reasons, and are no longer counted as part of the labor force. This means that they are not included in the unemployment rate calculation, which only takes into account those actively seeking work. However, their absence from the labor force also reduces the overall size of the labor force, which can have a negative impact on the economy as a whole. Therefore, the increase in the number of discouraged workers during the Great Recession had a significant impact on both the unemployment rate and the size of the labor force.
Learn more about labor force here:
https://brainly.com/question/13962639
#SPJ11
In ________________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat or financial securities. Sellers in these markets do not spend much time on marketing strategy.
In pure competition, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat or financial securities. Sellers in these markets do not spend much time on marketing strategy.
What do you mean by the pure competition?
All goods are comparable in a pure market competition. Despite not being exactly the same, products may all have packaging, colours, and shapes that seem to resemble one another.
Customers may not have product preferences because products are similar, and they frequently will buy all things equally.
Also known as Atomistic Competition and Perfect Competition.
A marketing scenario where many companies sell the same product and cannot differentiate themselves from one another; as a result, no firm has a substantial impact on price.
The ease with which new businesses can enter the market and great market knowledge are further existing factors.
Therefore, in pure competition, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat or financial securities. Sellers in these markets do not spend much time on marketing strategy.
To know more about the pure competition, visit:
https://brainly.com/question/28189773
#SPJ2
Option 1: 1,811 square feet, 2-3 bedroom, 2 bath house that arrives in 4 modules. It includes the upgraded PEX piping and fiber cement siding that Xavier saw on the tour. The price for Option 1 would be $180 per square foot.
Option 2: 2,600 square feet, 3-4 bedroom, 3 bath house that arrives in 5 modules. It also includes the upgraded PEX piping and fiber cement siding. The price for Option 2 is $195 per square foot.
Sabrina also explains that Xavier must have certain things ready ahead of time, such as electric, sewer, and water systems, as well as a foundation in place. She gives him the name of a transport company that would oversee bringing Xavier’s modules to his house site. On your math sheet, complete the following problems that will help Xavier choose from the two options Sabrina has presented him:
Math Problem 3: Calculate the total price for Option 1
Use this formula to help you solve the problem:
Total Square Feet × Number of Square Foot=Total Price
Math Problem 4: Calculate the total price for Option 2
Use this formula to help you solve the problem:
Total Square Feet × Number of Square Foot=Total Price
Xavier contacts the transport company and is put in touch with one of the drivers, Kevin. Because the modules need to be connected quickly once they reach his build site, Xavier wants to know if he can have them all delivered on the same day. Kevin says that this would be possible using one truck per module. The fee for transporting each module is 20 cents per truck per mile, plus the cost of fuel. The factory is 350 miles from Xavier’s build site, and Kevin estimates that each truck will need $500 worth of gas.
On your math sheet, complete the following problem to help Xavier find out how much he will spend on transportation costs:
Math Problem 5: Calculate Xavier’s transportation cost to have the modules delivered on the same day
Use this formula to calculate Xavier’s cost:
[(.20 × miles)+500]× number of modules
Part 2: Job Board
Xavier is excited but knows this is a huge project. Help Xavier stay organized by creating a job board for him. A job board is like a bulletin board that holds important information about a big project. This way, he can see the important aspects of his job, along with his costs. To do this, you will be taking the answers to the math questions above and creating items that Xavier can hang on his job board to remind him of the choices he should make in this project. You may select to create your job board in poster form or digitally in a word processing document. Either way, the job board should include the following pieces of content:
A rough drawing of Xavier’s lot that includes the lot measurements provided above.
Make sure that you include the total area of the lot that you calculated in Math Problem 1 somewhere on this drawing.
A sketch of the prefabricated house option that you suggest Xavier purchases (either Option 1 or Option 2).
Make sure that you include his final price that you calculated in Math Problem 3 or 4.
Also, be sure to label the upgraded technology that was included in the option you chose so that Xavier can point it out to his building inspector when the time comes.
A graphic representation (photo, clip art, etc.) of a truck with the final transportation cost on it (this is the answer to Math Problem 5).
If the price is $180 per square foot, the price of the lot will be $3,240,000
How to find the price of the lotTo calculate Xavier cost, we need to first calculate the area of the lot (trapezium)
Area of the trapzium = 1/2(a+b)h
h is the height of the trapezium
a and b are the sides
Area of the trapezium = 1/2(175+185)*100
Area of the trapezium = 1/2(360)*100
Area of the trapezium = 18000 square foot.
If the price is $180 per square foot, the price of the lot will be 18000 * 180 = $3,240,000
Read more about algebra here:
https://brainly.com/question/432678
#SPJ1
In the Promotion Budget Resource, teams can select which of the following media areas.
A. Print Media and Television.
B. Email and Telephone Contact.
C. Trade and Road Shows.
D. Web Media and Direct Mail.
In the Promotion Budget Resource, teams can select from four different media areas to allocate their promotional budget: Print Media and Television, Email and Telephone Contact, Trade and Road Shows, and Web Media and Direct Mail.
Promotion is an essential component of marketing that involves communicating information about a product or service to potential customers. To do so, companies allocate a budget to promote their products or services. The Promotion Budget Resource offers teams a selection of four media areas to allocate their promotional budget: Print Media and Television, Email and Telephone Contact, Trade and Road Shows, and Web Media and Direct Mail.
Print Media and Television involve traditional media platforms such as newspapers, magazines, and television ads. Email and Telephone Contact includes targeted email campaigns and telemarketing. Trade and Road Shows are face-to-face promotional events where companies can showcase their products to potential customers. Finally, Web Media and Direct Mail includes digital marketing efforts such as online ads, social media, and direct mail campaigns.
By offering these different media areas, the Promotion Budget Resource allows teams to choose the most effective channels to reach their target audience and allocate their promotional budget accordingly. Depending on the product or service, some media areas may be more effective than others, and it's essential to choose the most suitable options to ensure the success of the promotion.
Learn more about Budget:
brainly.com/question/31952035
#SPJ11
what are features of business environment
Answer:
Business environment includes specific forces such as investors, customers, competitors and suppliers. Non-human or general forces are Social, Legal, Technological, Political, etc. which affect the Business indirectly.
Ursula wants to have an interest rate that can increase or decrease during the life of her loan. She should look for a(n):
Can someone help me with number 9 please
Answer:
carbon paper
Explanation:
there is a yellow paper underneath that the ink is transferred to
Answer:
carbon paper. Like if correct
Kingbird Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the first six months of 2022 , the following data are available: 1. Sales: 19,500 units in quarter 1;22,500 units in quarter 2 2. Variable costs per dollar of sales: sales commissions 5%; delivery expense 2%; and advertising 4% 3. Fixed costs per quarter: sales salaries $10,000; office salaries $7,400; depreciation $4,200; insurance $1,700; utilities $800; and repairs expense $600 4. Unit selling price: $22 Prepare a selling and administrative expenses budget by quarters for the first six months of 2022 .
The selling and administrative expenses budget for the first six months of 2022 would include the expenses for both quarters:
Selling and Administrative Expenses Budget:
Quarter 1: $72,890
Quarter 2: $79,350
To prepare the selling and administrative expenses budget by quarters for the first six months of 2022, we need to calculate the variable expenses and fixed expenses for each quarter. Here's the breakdown:
Quarter 1:
Sales: 19,500 units
Variable costs per dollar of sales:
Sales commissions: 5% of sales
Delivery expense: 2% of sales
Advertising: 4% of sales
First, we calculate the total sales:
Total sales = Unit selling price * Sales volume
Total sales = $22 * 19,500 = $429,000
Next, we calculate the variable expenses:
Sales commissions = 5% of total sales = 0.05 * $429,000
Delivery expense = 2% of total sales = 0.02 * $429,000
Advertising = 4% of total sales = 0.04 * $429,000
Quarter 1 Variable Expenses:
Sales commissions: $21,450
Delivery expense: $8,580
Advertising: $17,160
Now, let's calculate the fixed expenses for Quarter 1:
Sales salaries: $10,000
Office salaries: $7,400
Depreciation: $4,200
Insurance: $1,700
Utilities: $800
Repairs expense: $600
Quarter 1 Fixed Expenses:
Sales salaries: $10,000
Office salaries: $7,400
Depreciation: $4,200
Insurance: $1,700
Utilities: $800
Repairs expense: $600
Total Selling and Administrative Expenses for Quarter 1:
Total expenses = Variable expenses + Fixed expenses
Total expenses = $21,450 + $8,580 + $17,160 + $10,000 + $7,400 + $4,200 + $1,700 + $800 + $600
Quarter 1 Selling and Administrative Expenses: $72,890
Quarter 2:
Sales: 22,500 units
Variable costs per dollar of sales:
Sales commissions: 5% of sales
Delivery expense: 2% of sales
Advertising: 4% of sales
First, we calculate the total sales:
Total sales = Unit selling price * Sales volume
Total sales = $22 * 22,500 = $495,000
Next, we calculate the variable expenses:
Sales commissions = 5% of total sales = 0.05 * $495,000
Delivery expense = 2% of total sales = 0.02 * $495,000
Advertising = 4% of total sales = 0.04 * $495,000
Quarter 2 Variable Expenses:
Sales commissions: $24,750
Delivery expense: $9,900
Advertising: $19,800
Now, let's calculate the fixed expenses for Quarter 2:
Sales salaries: $10,000
Office salaries: $7,400
Depreciation: $4,200
Insurance: $1,700
Utilities: $800
Repairs expense: $600
Quarter 2 Fixed Expenses:
Sales salaries: $10,000
Office salaries: $7,400
Depreciation: $4,200
Insurance: $1,700
Utilities: $800
Repairs expense: $600
Total Selling and Administrative Expenses for Quarter 2:
Total expenses = Variable expenses + Fixed expenses
Total expenses = $24,750 + $9,900 + $19,800 + $10,000 + $7,400 + $4,200 + $1,700 + $800 + $600
Quarter 2 Selling and Administrative Expenses: $79,350
The selling and administrative expenses budget for the first six months of 2022 would include the expenses for both quarters:
Selling and Administrative Expenses Budget:
Quarter 1: $72,890
Quarter 2: $79,350
Learn more about selling and administrative expense budget here:
https://brainly.com/question/23410804
#SPJ11
waystar royco reported inventory of $115 million at the beginning of the year and $142 million at the end of the year. purchases of inventory were $66 million. what is cost of goods sold for the year
Waystar royco reported inventory of $115 million at the beginning of the year and $142 million at the end of the year. purchases of inventory were $66 million. The cost of goods sold for the year is 39 million.
The phrase "cost of goods sold" (COGS) refers to the real expenses incurred in producing the things that a company sells. It is the total expense that your company incurred that was directly related to the sale of products.
To calculate the cost of goods sold (COGS), we can use the following formula:
COGS = Beginning inventory + Purchases - Ending inventory
Substituting the given values, we get:
COGS = $115 million + $66 million - $142 million
COGS = $39 million
Therefore, the cost of goods sold for the year is $39 million.
Learn more about the Cost of Goods Sold, here:
brainly.com/question/30207544
#SPJ11
1.
Consider the market for personal computers. Suppose that
demand is stable: The demand curve doesn't change. Predict
the effects of the following changes on the on the equilibrium
price of computers. Illustrate your answers with a supply and
demand diagram. (Hint: Needs 2 Graphs; one for "a" and one for
"b")
a.
b.
The cost of memory chips decreases.
The government imposes a $100 tax on personal
computers
Note that a decrease in the cost of memory chips will shift the supply curve to the right, leading to an increase in the quantity supplied and a decrease in the price of computers.
On the other hand, the imposition of a $100 tax will shift the supply curve to the left, reducing the quantity supplied and increasing the price of computers. As a result, the price of computers will decrease in the first case and increase in the second case.
What is the rationale for the above response?In economics, the equilibrium price is the price at which the quantity of a good or service supplied is equal to the quantity demanded by consumers.
When the cost of memory chips decreases, there will be an increase in the supply of personal computers, as it becomes cheaper for manufacturers to produce them.
This shift in supply will cause the price of personal computers to decrease, reaching a new equilibrium price at which the quantity supplied equals the quantity demanded.
On the other hand, if the government levies a $100 tax on personal computers, this will increase the price for consumers, causing a decrease in demand.
The shift in demand will cause the price to increase, reaching a new equilibrium price at which the quantity supplied equals the quantity demanded.
Learn more about Supply Curve:
https://brainly.com/question/14746136
#SPJ1
Which financial statement shows the financial performance of the company on a cash basis?
The financial statement with a balance sheet depicts the company's cash-basis financial performance.
What does a financial statement mean?Financial statements are documents that describe a company's operations and financial performance. Government organizations, accounting companies, etc. frequently audit financial statements to guarantee accuracy and for tax, financing, or investing purposes. Lenders and investors use it to evaluate a company's financial stability and earnings potential.The income statement, balance sheet, and cash flow statement are the three primary financial statements.To learn more about Financial statements, refer to:
https://brainly.com/question/21143410
#SPJ4
The rate of interest specified in a bond contract as the interest rate to be paid by the company to investors in the bond is known as the market rate.a) Trueb) False
False. The rate of interest specified in a bond contract as the interest rate to be paid by the company to investors in the bond is known as stated rate, therefore the given statement the rate of interest specified in a bond contract as the interest rate to be paid by the company to investors in the bond is known as the market rate is false.
The market rate (or "going rate") for goods or services is the usual price charged for them in a free market. If demand goes up, manufacturers and laborers will tend to respond by increasing the price they require, thus setting a higher market rate. When demand falls, market rates also tend to fall.
The rate of interest specified in a bond
contract as the interest rate to be paid by the company to investors in the bond is known as market rate. The market price is defined as the price for goods or services is the usual price charged for them in a free market. Therefore the given statement is false and the correct answer is stated price. Hence, The given statement is false because the rate of interest specified in a bond contract as the interest rate to be paid by the company to investors in the bond is known as stated rate.
To know more about Market rate visit:
https://brainly.com/question/29584739
#SPJ4
What can diversification help you deal with?
Interest
Opportunity cost
Risk
Liquidity
Answer: its A
Explanation:
Answer: the answer should be:
C: Risk
Explanation:
Hope this helps ]:
if a company receives $100,000 cash in exchange for issuing 100 bonds at $1,000, the bonds were issued at .
Answer:at face value
Explanation:
What is the most effective solution to unemployment?
The best ways to combat unemployment are:
Design your position of employment Develop general skillsImprove digital literacySeize the chance to internCreate a networkContinue your education, Keep your resume current.What is the simple definition of unemployment?
When someone actively seeks a job but is unable to do so, this is referred to as being unemployed. One important indicator of the state of the economy is unemployment.
What is the cause of unemployment?
Cycles of unemployment are caused by low consumer demand. When demand declines, businesses suffer excessive profit losses. They must let employees go if they don't think sales will increase quickly. It is cyclical because rising unemployment causes consumer demand to decline even further.
Why is unemployment a problem?
Losses in salaries and incomes for workers and their families, an increase in inequality, a hostile atmosphere for welfare reform, and the social costs of increasing crime and deteriorating health are all consequences of higher unemployment.
Learn more about unemployment: https://brainly.com/question/14227610
#SPJ4
the types of companies that make particularly attractive acquisition targets when employing an unrelated diversification strategy are
The types of companies that make particularly attractive acquisition targets when employing an unrelated diversification strategy
are those that operate in different industries or have diverse product/service offerings. These companies can bring complementary expertise, resources, and customer bases to the acquiring company, reducing its reliance on a single industry or market. By diversifying into unrelated industries, the acquiring company can mitigate risks associated with economic fluctuations or industry-specific challenges, and potentially unlock new growth opportunities. Additionally, acquiring companies with strong management teams, established brand recognition, and scalable business models can further enhance the attractiveness of such acquisition targets for unrelated diversification strategies.
learn more about companies here:
https://brainly.com/question/28258106
SPJ11
Which of the following symptoms is NOT associated with an allergic reaction?
Trouble breathing
Anxiety
OOO
Fainting
Screaming
When one is having an allergic reaction to something, one symptom that is not expected is Screaming.
An allergic reaction usually leads to the following:
Person has trouble breathing Person develops anxiety Person might faintIt is not a usual thing that a person will scream as a result of an allergic reaction.
We can therefore conclude that screaming is not associated with allergic reactions.
Find out more at https://brainly.com/question/20093415.
What is GDP decline called?
GDP decline called is Recession. A country's gross domestic product (GDP) is the sum of the market values of all the finished products
A country's gross domestic product (GDP) is the sum of the market values of all the finished products and services produced within its borders during a certain time period. It serves as a thorough assessment of a particular country's economic health as a wide indicator of entire domestic production.
While GDP is frequently estimated on an annual basis, it is also occasionally calculated on a quarterly basis. In the United States, for instance, the government produces an annualized GDP estimate for both the calendar year and each fiscal quarter. Since each set of data in this report is presented in actual terms, price changes are taken into account and the data is therefore net of inflation.
Learn more about GDP here
brainly.com/question/15682765
#SPJ4
Negative growth is really a decline in a company's sales or profits. It can also refer to a country's economy deteriorating, as demonstrated by a decline through its gross domestic product (GDP) in any financial period of a year.
What is the name of GDP decline?The terminology "business cycle" refers to shifts in the rate of expansion of the economy's "potential output," which advances steadily over time.
Real gross domestic product (GDP) is the standard measure of output, and potential output is just the level of output that an economy can reach when exploiting all of its resources, including workers, capital, agricultural products, and science and technology.
Even with weak, but not negative, GDP growth, the jobless rate might rise significantly, causing hardship for households.The GDP includes certain unstable components. Therefore, two quarters in a row of negative GDP growth can send the wrong message about the true rate of economic expansion.As new data become available, various components of GDP may need to be revised in their measurement.Thus, a false indication about the underlying rate of economic growth is therefore more likely because a negative quarterly growth statistic can be edited away or a good one can turn negative.
Know more about the GDP decline, here
https://brainly.com/question/24153596
#SPJ4
kindly assist with research
my topic
The newly implemented e-payslip is not inclusive to all employees of the government.
what is the problem?
why is it the problem?
3 things that should be done to solve the problem?
The problem in the topic is the newly implemented e-payslip is not inclusive to all employees of the government. The reason why this is a problem is because it can cause dissatisfaction and confusion among employees who do not have access to the e-payslip.
Also, the e-payslip system may not be accessible or user-friendly for all employees who are supposed to use it.
Here are three things that should be done to solve the problem:
1. Conduct research: Research should be conducted to find out which employees are not included in the e-payslip system and why. This can help identify any technical or logistical problems that may be preventing some employees from using the system.
2. Increase accessibility: Steps should be taken to increase the accessibility of the e-payslip system so that all employees can use it. This may involve providing training and support to employees who are not familiar with using digital systems.
3.Improve communication:
Clear communication should be provided to all employees about the e-payslip system, including how to access it, how to use it, and how it benefits them. This can help address any confusion or dissatisfaction among employees who are not currently using the system.
To know more about e-payslip please check the following link
https://brainly.com/question/2838983
#SPJ11
In the following pictograph, how many books has Group 3 read?
18
25
15
12
Answer:
15 is the answer you are looking
which term refers to everything you own minus debts (such as a mortgage on your home and credit card debt)?
Wealth refers to everything you own minus debts (such as a mortgage on your home and credit card debt). It is the only thing that you can own completely.
What is Wealth?
Wealth refers to the total value of all assets of worth owned by any person, group or any country. It is the accumulation of all the scarce resources. It can seen into three types: personal property ( homes, automobiles) , monetary savings and real estate, stocks, bonds and shares.
Wealth = Total market value( physical and intangible assets) - Debts.
Characteristics of wealth are
It is scarceIt can be utilizedIt can be transferred from one person to anotherTherefore, Wealth refers to everything you own minus debts (such as a mortgage on your home and credit card debt). It is the only thing that you can own completely.
To know more about Wealth from the given link
https://brainly.com/question/1318711
#SPJ4
Who does not make a good reference?
A. former employers
B. relatives
C. current employers
D. teachers
Answer:
b
Explanation:
cause yeajjfjfjgjgjgkgkgkg
Using too many different shapes within a design can
a. add interest to the design
b. make the room fun for kids
c. be visually confusing or distracting
d. none of the above
Answer:
c. be visually confusing or distracting
Explanation:
"Too many"=Negative
Answer:
C
Explanation:
Which of the following statements about stocks is TRUE?
A stock is a type of savings account that pays interest based on current interest rates in the money market.
A stock is a share of ownership in a company.
A stock is a type of investment that invests in a mix of different types of investments.
A stock is a type of debt investment that acts like a loan.
Answer:
number 2
Explanation:
stock is a share of ownership in a company
The statement about stocks is TRUE A stock is a share of ownership in a company. Thus the correct option is 2.
What is stock?A stock is referred to as a kind of ownership of certain items. When an individual holds stocks or shares in the market they are entitled as a stockholder or shareholder and liable for some dividend.
A significant positive link exists between beta and returns when there are positive worldwide profits, and a large negative correlation exists when there are negative global excess returns.
An individual buying the stock is referred to as Stockholder who earns a great profit when the purchased stocks seek growth in the market and this will helps the economy to grow side by side.
Therefore, option 2 A stock is a share of ownership in a company is appropriate.
Learn more about Stocks, here:
https://brainly.com/question/29992015
#SPJ2
Consumer demand for a certain product is given by D(p) = 120e −0.5p , where p is the selling price in hundreds of dollars. Find the price that maximizes consumer expenditure. Show work to justify that your answer actually is a maximum.
There is no maximum value for consumer expenditure within the given function. The consumer expenditure is unbounded as the selling price increases.
To find the price that maximizes consumer expenditure, we need to determine the value of p that maximizes the function D(p) = 120e^(-0.5p).
To find the maximum, we can take the derivative of D(p) with respect to p and set it equal to zero. Let's start by finding the derivative:
D'(p) = -60e^(-0.5p)
Setting D'(p) equal to zero:
-60e^(-0.5p) = 0
Since e^(any number) is always positive and never zero, the equation above cannot be satisfied. Therefore, D'(p) does not have any critical points where the derivative is equal to zero.
Since D'(p) has no critical points, we need to investigate the endpoints of the domain. However, since p represents the selling price in hundreds of dollars, it is not specified whether there are any limitations on the domain of p. Assuming p can take any positive value, there are no endpoints to consider.
Therefore, we conclude that there is no maximum value for consumer expenditure within the given function. The consumer expenditure is unbounded as the selling price increases.
To know more about consumer expenditure, click here, https://brainly.com/question/28458929
#SPJ11
At his current level of output, a monopolist has an MR of $10, an MC of $6, and an economic profit of zero. If the market demand curve is downward sloping and his marginal cost curve upward sloping, the monopolist:_______
Answer:
The monopolist is in the long run.
Explanation:
The monopolist is in the long run because, in the long run, a monopolist earns or gets zero economic profit. In the short run, it earns supernormal profit that attracts the new firms into the market and this entry continues until the economic profit becomes zero and in the long run, its price is equal to the average total cost. Moreover, the average total cost curve becomes tangent to the demand curve in the long run.
Sarah receives a semi-monthly salary of $933.20 and works a regular workweek of 40 hours. A. What is Sarah's hourly rate of pay? 5 marks b. If Sarah's gross earnings in one pay period were $1090.19, for how many hours of overtime was she paid at time and one-half regular pay
Answer:
$10.7677
9.72 hours
Explanation:
Given the following :
Semi-monthly salary = $933.20
Work hours per week = 40 hours
Hourly rate of pay =?
Monthly salary = 2 × $933.20 = $1866.40
Yearly pay = $1866.40 × 12 = $22396.8
Therefore, weekly pay ;
$22,396.80 / 52 = $430.7077
However, Sarah only works for 40 hours per week
Therefore, weekly pay equals;
$430.7077 / 40 = $10.7677
B) if gross pay = $1090.19
Therefore, amount of overtime paid equals:
$1090.19 - $933.20 = $156.99
If overtime pay is one-half regular pay, that is;
1.5 × $10.7677 = $16.152
Therefore, overtime hours equals
Total overtime paid / overtime pay rate
$156.99 / $ 16.152 = 9.719
9.72 hours
Which level of government funds the health care available to Native American tribes and Alaskan Natives
OA. state
OB. federal
OC. local
O D. tribal
Answer:
Explanation:
The Federal Government
Yo, when I retire from teaching, I will have accumulated a variety of
supplemental income plans. This illustrates the economic goal known as
_______.
sume that the single-index model holds, the risk-free rate is 2% per year, the expected return on the market is 10% per year and that the annualized volatility (standard deviation) of market returns is 20%. assume that the beta of ibm is 1.0, the beta of gm is 2.0, and their respective annualized return volatilities are 25% and 80%. what is the correlation between ibm and gm returns? group of answer choices 0.4 0 0.8 -0.25
The correlation between IBM and gm returns is 0.25.
To calculate the relationship between IBM and GM returns, ready to utilize the equation for the covariance of two resources inside the system of the single-index show. The relationship can be inferred from the covariances of the two resources with the showcase.
Given:
Risk-free rate (RF) = 2% per year
The anticipated return on the showcase (RM) = 10% per year
Instability (standard deviation) of advertising returns (σM) = 20% per year
Beta of IBM (βIBM) = 1.0
Beta of GM (βGM) = 2.0
Annualized return instability of IBM (σIBM) = 25% per year
Annualized return instability of GM (σGM) = 80% per year
The covariance between IBM and the advertise (CovIBM, M) can be calculated as:
CovIBM,M = βIBM * σIBM * σM
Substituting the given values:
CovIBM,M = 1.0 * 25% * 20% = 0.25 * 0.2 = 0.05
The covariance between GM and the showcase (CovGM, M) can be calculated as:
CovGM,M = βGM * σGM * σM
Substituting the given values:
CovGM,M = 2.0 * 80% * 20% = 1.6 * 0.2 = 0.32
The relationship between IBM and GM returns (ρIBM, GM) can be calculated utilizing the taking after equation:
ρIBM,GM = CovIBM,GM / (σIBM * σGM)
Substituting the calculated covariances and the given return volatilities:
ρIBM,GM = 0.05 / (25% * 80%) = 0.05 / (0.25 * 0.8) = 0.05 / 0.2 = 0.25
Hence, the relationship between IBM and GM returns is 0.25.
To know more about correlation refer to this :
https://brainly.com/question/13879362
#SPJ4
3. A fine-dining restaurant has been making every- thing from scratch for the five years it has been open; it is the only operation in the area known for scratch- cooking. The management hires a new chef who does a make–buy analysis only to discover that she can get much better pricing on many of her products if she buys them premade. After a tasting comparison, she discovers that the premade products are of high quality and taste only slightly different from her own. Should she switch to the premade products? Would your answer be different if this decision took place when the restaurant first opened?
Answer:
No
Explanation:
The premade products could have been contaminated with any type of disease because she doesn't know what went inside whereas making it from scratch means she is able to monitor and remove and contaminated product.
:)