Show that the bidding strategy in b^(v) = 1 / Fᴺ⁻¹ (v) ⱽ∫₀ xdFᴺ⁻¹ (x).
is strictly increasing.
Answers
As v₁ < v₂, we know that Fᴺ⁻¹ (v₂) > Fᴺ⁻¹ (v₁) because the cumulative distribution function (CDF) is non-decreasing. Therefore, he bidding strategy in b^(v) = 1 / Fᴺ⁻¹ (v) ⱽ∫₀ xdFᴺ⁻¹ (x) is strictly increasing.
To show that the bidding strategy in the equation b^(v) = 1 / Fᴺ⁻¹ (v) ⱽ∫₀ xdFᴺ⁻¹ (x) is strictly increasing, we need to demonstrate that as the value v increases, the corresponding bid b^(v) also increases.
Let's consider two values, v₁ and v₂, such that v₁ < v₂. We want to compare the corresponding bids, b^(v₁) and b^(v₂), and show that b^(v₁) < b^(v₂).
Using the equation, we have:
b^(v₁) = 1 / Fᴺ⁻¹ (v₁) ⱽ∫₀ xdFᴺ⁻¹ (x)
b^(v₂) = 1 / Fᴺ⁻¹ (v₂) ⱽ∫₀ xdFᴺ⁻¹ (x)
To simplify the comparison, let's focus on the ratio of the two bids:
b^(v₁) / b^(v₂) = (1 / Fᴺ⁻¹ (v₁)) / (1 / Fᴺ⁻¹ (v₂))
Simplifying further:
b^(v₁) / b^(v₂) = Fᴺ⁻¹ (v₂) / Fᴺ⁻¹ (v₁)
Since v₁ < v₂, we know that Fᴺ⁻¹ (v₂) > Fᴺ⁻¹ (v₁) , Therefore, the ratio b^(v₁) / b^(v₂) is less than 1, implying that b^(v₁) < b^(v₂).
This shows that as the value v increases, the corresponding bid b^(v) also increases, proving that the bidding strategy in the given equation is strictly increasing.
To know more about cumulative distribution function refer here
brainly.com/question/30402457
#SPJ11
Related Questions
The agreements between MNCs and international trade union organizations which commit the companies to observing standards and principles throughout their worldwide operations (codes of conduct) have increased in the past few years. By 2015, there were ____ global agreements in place.
a. 113
b. 25
c. 57
d. 200
e. 175
Answers
The correct answer is option c. 57. By 2015, there were a total of 57 global agreements in place between multinational corporations (MNCs) and international trade union organizations.
Global agreements between MNCs and international trade union organizations have become increasingly prevalent in recent years. These agreements, often referred to as codes of conduct, aim to ensure that MNCs uphold certain standards and principles in their operations worldwide.
These standards may include respecting workers' rights, promoting fair labor practices, protecting the environment, and maintaining ethical business conduct. Such agreements are designed to improve working conditions, promote social responsibility, and enhance corporate accountability.
By establishing global agreements, MNCs and trade union organizations seek to create a framework for responsible business practices and promote sustainable development. These agreements address various areas of concern and provide guidelines for MNCs to follow across their global operations.
By committing to these codes of conduct, MNCs can demonstrate their commitment to ethical and responsible behavior, while trade union organizations can advocate for the rights and well-being of workers on an international scale.
Overall, the existence of 57 global agreements by 2015 reflects the growing recognition and implementation of standards and principles in MNCs' operations, aiming to foster a more equitable and sustainable global business environment.
Learn more about trade here:
https://brainly.com/question/32661935
#SPJ11
The term _____ refers to the presentation of a stimulus following a response, which then leads to a decrease in the future strength of that response.
Answers
The term negative punishment refers to the presentation of a stimulus following a response, which then leads to a decrease in the future strength of that response.
A presentation conveys facts from a speaker to an audience. shows are generally demonstrations, introductions, lectures, or speeches intended to inform, convince, inspire, motivate, construct goodwill, or gift a brand new concept/product.
An effective presentation makes great use of the relationship between the presenter and the target market. It takes full attention to the target audience's desires with a view to seize their interest, expand their knowledge, encourage their self-belief, and achieve the presenter's objectives. Presentation is the way you portray and present yourself to other people. It includes how you look, what you say, and what you do, and is all approximately marketing you, the emblem that is you. What others see and hear from you'll influence their opinion of you.
Learn more about the presentation here:
https://brainly.com/question/24653274
#SPJ4
True or false
the given statements refer to the pricing, economic efficiency, and resource allocation for monopolistically competitive firms. label the statements as being either true or false. each term is used more than once.
statement 1: monopolistically competitive firms will produce where price=marginal revenue=marginal cost in the short run.
statement 2: monopolistically competitive firms are inefficient in their use of resources since they produce at the point where marginal revenue=marginal cost, which means that price>marginal cost in the short run.
statement 3: monopolistically competitive firms will have positive profits even in the long run.
statement 4: monopolistically competitive firms will have demand curves tangent to the left of minimum average total cost. this means that monopolistically competitive firms will not experience economies of scale in the long run
Answers
For the given statements referring to the pricing, economic efficiency, and resource allocation for monopolistically competitive firms.
Statement 1: False
Statement 2: True
Statement 3: False
Statement 4: True
Statement 1: Monopolistically competitive firms will produce only where the marginal revenue equals the marginal cost in the short run.
Statement 2: Monopolistically competitive firms are inefficient in their use of resources since they produce at the point where marginal revenue equals the marginal cost, which means that price>marginal cost in the short run. This is a correct statement.
Statement 3: Monopolistically competitive firms will have positive profits even in the long run. This statement is incorrect. In the long run they will have zero profit due to the no cost entry (free entry) and the exit of firms.
Statement 4: Monopolistically competitive firms will have demand curves tangent to the left of minimum average total cost. This means that monopolistically competitive firms will not experience economies of scale in the long run.
We can learn more about monopolistically competitive firms here:
https://brainly.com/question/17241373#
#SPJ4
the central bank can reduce the level of credit by
Answers
Answer:it can increase the reserve requirements
Explanation:
Which step is the most important step in the decision making process?.
Answers
Answer:
The most important step of the decision-making process is: Assessing the possible uncertainties in the future course of action. It is a must for any of the firms to assess or evaluate the possible risks or the uncertainties associated with the firm operation and functioning.
Which of the following is one of the primary responsibilities of the federal judicial branch?
Answers
Answer:
to judge if laws made by the legislative branch are constitutional
Explanation:
Answer:
to judge the constitutionality of laws
Explanation:
If the cost of gasoline increases sharply and continues to rise, how does this development affect the demand curve for cars?a. The demand curve for gas-guzzlers and for fuel-efficient cars fluctuates wildly.b. The demand curve for gas-guzzlers and for fuel-efficient cars both shift to the right.c. The demand curve for gas-guzzlers shifts to the left, and the demand curve for fuel-efficient cars shifts to the right.d. The demand curve for gas-guzzlers shifts to the right, and the demand curve for fuel-efficient cars shifts to the left.
Answers
This development affect the demand curve for cars the demand curve for gas-guzzlers and for fuel-efficient cars both shift to the right. The answer is OPTION B.
To summarize, as a population's income level rises, the demand curve shifts to the right because there is more demand at each price point. If income levels fall, the opposite will occur. There will be less money available for spending, and the demand curve will shift to the left.
Demand rises as the demand curve shifts to the right, resulting in a higher equilibrium price. A shift to the right would cause the equilibrium to rise, implying higher prices. This could be due to a variety of factors, including an increase in income, a higher price for a substitute good, a lower price for a complementary good, and so on.
To learn more about demand curve, click here.
https://brainly.com/question/30550686
#SPJ4
What type of selling presentation method is best to use when the salesperson
is inexperienced and is selling a non-technical type of product?
a. formula selling
b. consultative selling
c. one-on-one selling
d.prepared sales presentation
Answers
Answer: Prepared sales presentation.
Explanation:
prepared sales presentation is the type of selling presentation method is best to use when the salesperson is inexperienced and is selling a non-technical type of product. Hence, option D is correct.
What is selling presentation method?A sales presentation, also known as a sales pitch, is a line of argument intended to persuade someone or something. It uses a carefully thought-out sales presentation strategy for a product or service that is intended to open and close a deal.
To allow plenty of room for the additional details, the four categories—memorized, persuasive selling, need-satisfactio, and problem-solution are presented in a zig-zag pattern.
In general, memorized or persuasive selling is preferable while giving a sales presentation. However, the requirements-satisfaction or problem-solution strategies are best if you need to comprehend customer priorities or uncover customer wants or problems.
Thus, option D is correct.
For more information about selling presentation method, click here:
https://brainly.com/question/28910751
#SPJ2
Halp! I need an answer right away
Thank you
Answers
Answer:
see below
Explanation:
Revenue is the money a business receives by engaging in its normal trading activities. It is the money paid to the business for selling goods or services to clients. For a business to be profitable, its revenues must exceed expenses.
If the business owner has revenue of $2000 and is finding it difficult to stay in business, it means the expenses are almost or more than $2000. Revenue, as stated, is generated from sales. Expenses refer to the costs incurred in generating revenue. They include the cost of materials, rent, wages, and all other business-related expenses.
When the expenses are more than revenue, the business suffers losses. This business owner is probably incurring losses; that's why they have a challenge in staying open.
59. Why don't workers in a Command Economy work hard?
a. Because they don't care about having money.
b. Because the business owners want them to be relaxed and calm.
C. Because they know they will get paid the same no matter how hard they work.
d. Because Mr. Coon and Mr. King aren't there to tell them to work harder.
Unit 2 The Free Enterprise Economy
Answers
WILL MARK BRAINLIEST IF ANSWER IS CORRECT!!
Which of the following might a homeowner's insurance company be unwilling to cover?
A. Theft
B. A person getting injured on the property
C. Fire
D. A natural disaster
Answers
Answer:
D. A natural disaster
Explanation:
Natural disasters such as floods, earthquakes, and wars occur intermittently and usually with high losses. An accurate estimation of their frequency and the severity of losses is not impossible. Due to these reasons, private insurance companies do not cover natural disasters.
When natural disasters strike, there are likely to affect many people at the same time. Insurance companies may be unable to compensate all of them for the extensive losses. The principle through which insurance companies operate will be de
A new equipment requires an investment of $130,000 to generate an income of $20,000 for the first 3 years, thereafter, increasing by $10,000 for the remaining life of 10 years. To recover the investment under a no-return payback condition it will take:
Answers
To recover the investment under a no-return payback condition, it will take 6 years.
The payback period is a financial metric used to determine how long it takes to recover the initial investment in a project or equipment. In this case, the investment for the new equipment is $130,000, and the income generated is $20,000 for the first 3 years, increasing by $10,000 for the remaining 10 years.
To calculate the payback period, we need to determine when the total cumulative income equals or exceeds the initial investment. For the first 3 years, the total income generated would be $20,000 per year, resulting in a cumulative income of $60,000. We subtract this from the initial investment of $130,000, leaving a remaining amount of $70,000.
Since the income increases by $10,000 per year for the remaining 10 years, it will take an additional 7 years to accumulate $70,000. Therefore, the total payback period would be 3 years + 7 years = 10 years.
However, since we are looking for the payback period under a no-return condition, where no income is generated after recovering the investment, we subtract the additional 7 years from the total payback period. Hence, the final payback period under a no-return condition is 10 years - 7 years = 6 years.
Learn more about : Investment
brainly.com/question/15105766
#SPJ11
What is the difference between an excise tax and a percentage tax?
Answers
The local government determines the amount of tax to be charged, and there is a sales tax in place in 45 US States. Contrarily, an excise tax is a flat fee that is added to the cost of certain goods, some by states and some by the federal government.
What is the major difference between excise tax and value added tax?A percentage-based ad valorem tax is levied. This leads to the creation of an excise tax depending on the cost of the good or service. The Internal Revenue Service (IRS), for instance, charges an excise tax of 10% on indoor tanning services.
Sales tax is charged on the sale of products, whereas excise duty is charged on the manufacture of goods. While the manufacturer is responsible for paying the excise tax, the end user is responsible for paying the sales tax.
A business tax known as percentage tax is levied against individuals or organizations who engage in the sale or rental of commodities, real estate, or services in the course of their trade or company and whose gross annual sales or revenues do not exceed P550.000.
To know more about percentage tax, refer:
https://brainly.com/question/29614995
#SPJ4
approximately what percentage of large companies deliver a portion of their training online? group of answer choices 50% 40% 30% 60%
Answers
The approximate percentage of training hours delivered online is 30%
What exactly is a percentage?A percentage is a number or ratio expressed as a fraction of 100 in mathematics. The abbreviations "pct.", "pct.", and "pc" are also used to signify it, although the percent symbol, "%," is most commonly used. There are no dimensions or standard measurements for A%.
10% is a comparison number that represents one-tenth of any quantity. The hundredth component, one percent (symbolized as 1%), is represented as 100 percent, whereas 200 percent represents double the amount indicated.
A percentage is calculated by dividing an item by its total and multiplying the result by 100. (Price/Total Price) The formula for calculating percentages is 100%.
According to 2018 reports, the number of hours remitted online is 25.6%.
To learn more about percentages, click
https://brainly.com/question/24304697
#SPJ1
april industries employs a standard costing system in the manufacturing of its sole product, a park bench. they purchased 60,000 feet of raw material for $300,000, and it takes 5 feet of raw materials to produce one park bench. in august, the company produced 10,000 park benches. the standard cost for material output was $100,000, and there was an unfavorable direct materials quantity variance of $6,000.
Answers
Overall, the information provided shows that April Industries experienced an unfavorable direct materials quantity variance of $6,000 when producing 10,000 park benches in August.
In August, April Industries produced 10,000 park benches using a standard costing system. To produce one park bench, it takes 5 feet of raw material. They purchased 60,000 feet of raw material for $300,000.
The standard cost for the material output of the 10,000 park benches is $100,000. However, there was an unfavorable direct materials quantity variance of $6,000.
The unfavorable direct materials quantity variance means that more raw material was used than expected to produce the 10,000 park benches. This could be due to inefficiencies in the manufacturing process, such as waste or errors in measuring and using the raw material.
To calculate the direct materials quantity variance, we can use the formula:
Actual Quantity Used - Standard Quantity Allowed x Standard Cost per Unit.
In this case, the unfavorable variance of $6,000 means that the actual quantity of raw material used was more than the standard quantity allowed.
It is important for April Industries to analyze this variance to identify the cause and take corrective actions to improve efficiency and reduce costs in the future.
to know more about costing system visit:
https://brainly.com/question/13450769
#SPJ11
Though some intangible attributes like delivery or a warranty may also be important for a product like a washing machine, because it has tangible attributes that a customer's senses can perceive, the washing machine is defined as ______.
Answers
It is true that some intangible attributes like delivery or a warranty may also be important for a product like a washing machine because it has tangible attributes that a customer's senses can perceive, the washing machine is defined as good having tangible attributes.
What is a tangible good in economics?
In economics, goods are tangible items that can be used to satisfy human wants.
Goods essentially have value because they provide utility. The more utility a good provides, the more it's value.
Learn more about goods at:
https://brainly.com/question/16652238
if enforcement is aimed at buyers of an illegal good, the result will bean increase in the short-run supply of the good.a decrease in the short-run supply of the good. a decrease in demand for the good. an increase in the price of the good.
Answers
if enforcement is aimed at buyers of an illegal good, the result will be decrease in the short-run supply of the good. Option C is correct.
If enforcement is aimed at buyers of an illegal good, the result will be a decrease in the short-run demand for the good, rather than an increase in the short-run supply of the good.
When buyers of an illegal good face increased enforcement, they are likely to reduce their demand for the good, as the risk and cost of purchasing the illegal good increases. This decrease in demand will result in a decrease in the short-run supply of the good, as suppliers will respond to the decrease in demand by reducing their production and supply of the illegal good.
Furthermore, the decrease in demand may also lead to a decrease in the price of the good, as suppliers may be forced to lower their prices to incentivize buyers to purchase the illegal good.
Hence, C. a decrease in demand for the good is the correct option.
To know more about short-run supply here
https://brainly.com/question/27064601
#SPJ4
--The given question is incomplete, the complete question is
"If enforcement is aimed at buyers of an illegal good, the result will be A) an increase in the short-run supply of the good. B) a decrease in the short-run supply of the good. C) a decrease in demand for the good. D) an increase in the price of the good."--
Visit museums or art galleries and you may live longer by Katie Hunt Visit museums or art galleries and you may live longer, new research suggests A trip to the theater, museum or art gallery could help you live longer. And the more often you get that culture fix the better, a new study suggests. Researchers from University College London (UCI) found that people who engaged in the arts more frequently -- every few months or more - had a 31% lower risk of dying early when compared to those who didn't. Even going to the theater or museum once or twice a year was linked with a 14% lower risk. They looked at data given by more than 6,000 adults in England age 50 years and older, who were taking part in a wider study on aging. "While other health behaviors like smoking, alcohol and exercise are undoubtedly bigger predictors of mortality, these leisure and pleasure activities that people don't think as a health related activity do support good health and longevity, said Daisy Fancourt, an associate professor at UCL's Research Department of Behavioural Science and Health, and an author of the study, published Wednesday in the BMI journal. How often an individual engaged in art activities, which also included exhibitions, concerts and opera but not cinema, was measured at the start of the study in 2004 to 2005. Participants were then followed up for an average of 12 years, during which time deaths were recorded using data from the UK's National Health Service (NHS)
based on the article, it can be determined that _____ is a factor that explains part of the association between museum attendance and health.
Answers
From the article, we can conclude that attendance and health are factors that partially explain the relationship between museum attendance and health Visiting Museums and Art Galleries May Help You Live Longer by Katie Hunt Visiting theaters, museums, or art galleries may help you live longer.
And new research suggests that the more often the culture is modified, the better the results. Researchers at University College London (UCI) found that a person who engaged in the arts more often (every few months or more) had a 31% lower risk of dying prematurely than those who did not. . Even going to the theater or museum once or twice a year reduced his risk by 14%. They looked at data from more than 6,000 adults aged 50 and over in the UK who were participating in a larger study on aging. “journal BMI, measured how often people engaged in artistic activities such as exhibitions, concerts and operas at the start of the study, but the study did No movies belonged 2004-2005. Participants were then followed for an average of 12 years, during which deaths were recorded using UK National Health Service data.
For more information on exhibitions see:
https://brainly.com/question/19689448
#SPJ4
All of the following would cause aggregate demand to shift except a
change in consumer spending.
change in productivity.
change in investment spending.
change in exports.
change in imports.
Answers
As productivity relates to the entire effectiveness of production, changes in productivity would not have a direct impact on aggregate demand.
Among the following, which would not alter aggregate demand?A shift in the AD curve is prevented by changes in inflation because they alter the level of prices in the economy. C, which refers to an increase in inflation, is the right answer.
What are the four key factors that can affect aggregate demand?The aggregate demand curve, or AD curve, shifts to the right as the components of aggregate demand—consumption spending, investment spending, government spending, and spending on exports minus imports—increase.
To know more about productivity visit:-
https://brainly.com/question/30333196
#SPJ1
Government intervention is one possible solution for market failure. What is one possible reason why a government-controlled used car market may not provide an efficient outcome?.
Answers
government actors may have their own incentives that might not align with market efficiency is one of the possible reasons for not getting an efficient outcome.
In the used car market, buyers come to buy a second-hand car from a seller whose car is for sale, however, the interaction between - lack of symmetrical information regarding cars led to the disruption of this industry as buyers and sellers both have differences in knowledge of cars in the market.
When the market is not in a failure situation, then sellers will be interested to sell the used car to an average and expected rate of buyers and end up selling old cars, however, in a failure situation, only high-quality car is there to be sold which further deteriorate the conditions and finally collapsed down.
To know more about government intervention, follow the below link:
https://brainly.com/question/14589607
#SPJ4
in the past, kohl’s has been losing sales to amazon. why then would it enter into a partnership with one of its most fierce competitors?
Answers
Kohl’s will want to enter into a partnership with Amazon with hopes of increasing its store traffic by bringing Amazon customers in.
Partnership is basically the coming together of two of more companies or individual with a common goal.
Let bear in mind that Partnership is different from Acquisition or Merger because each owner is entitled to their share of profit.
Through this partnership, Kohl's and Amazon will both benefit from the arrangement.
Currently, Kohl's has a large number of physical stores which Amazon has no access to. So therefore, Kohl's will benefits from Amazon's strong online customer base.
Therefore, Kohl’s will want to enter into a partnership with Amazon with hopes of increasing its store traffic by bringing Amazon customers in.
Learn more about Partnership here
brainly.com/question/24224040
A PLACE WHERE WEALTH IS DETERMINED BY YOUR DECISIONS AND NOT WHO YOUR
PARENTS ARE IS CALLED WHAT?
Answers
Answer:
maybe a cast system?
Explanation:
im probably wrong
The _____________ represented sweeping changes to the tax code and reframed the computation of employee income tax.
Answers
The Tax Cuts and Jobs Act represented sweeping changes to the tax code and reframed the computation of employee income tax.
What is Tax Cuts and Jobs Act?Tax Cuts and Jobs Act serves as the established act that focus on the changes to the tax code as regards the employees.
Therefore,Tax Cuts and Jobs Act changes to the tax code reframed the computation of employee income tax.
Learn more about Tax Cuts and Jobs Act at:
https://brainly.com/question/1904946
identify two ways (other than its website) that bushall could use to advertise jo vaccines
Answers
Explanation:
well what can I do? can't help you sorry
What happens to an inferior good when income decreases?
Answers
When incomes drop or the economy weakens, the demand for subpar goods rises. When this occurs, inferior good alternatives to more expensive goods are made available.
Explain about the inferior good?In economics, when income rises or the economy grows, the demand for subpar products declines.
Customers will be more likely to spend money on more expensive alternatives when this occurs. This change may be the result of various factors, such as quality or a movement in the socioeconomic level of the consumer.Everything that a consumer would purchase less of even with an independent certification of real income is considered an inferior item, which is the polar opposite of a normal good. They might also be connected to people who are typically from lower socioeconomic classes.In contrast, when earnings drop or the economy weakens, the demand for subpar goods rises.
Thus, when this occurs, less priced alternatives to more expensive goods are made available.
To know more about the inferior good, here
https://brainly.com/question/14431961
#SPJ4
The president was told that the fixed expenses of $136,000 included $96,000 that had been split evenly between divisions because they were general corporate expenses. After looking at the statement, the president exclaimed, "I knew it! Division B is a drag on the whole company. Close it down!" Required: a. Evaluate the president's remark. The president's remark ignores the misleading result of arbitrarily allocated fixed expenses. The president's remark ignores the misleading result of arbitrarily allocated variable expenses. b. Calculate what the company's net income would be if Division B were closed down. c. What is the policy statement related to the allocation of fixed expenses. Never arbitrarily allocate fixed expenses. Never arbitrarily allocate variable expenses. Acme Company's production budget for August is 19,300 units and includes the following component unit costs: direct materials, $9.00; direct labor, $11.80; variable overhead, $5.80. Budgeted fixed overhead is $50,000. Actual production in August was 21,870 units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $11.20; variable overhead, $7.00. Actual fixed overhead was $53,300. The standard direct labor cost per unit consists of 0.5 hour of labor time at $23.6 per hour. During August, $244,944 of actual labor cost was incurred for 9,720 direct labor hours. Required: Calculate the labor rate variance and labor efficiency variance for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Answers
a. Evaluate the president's remark: The president's remark ignores the misleading result of arbitrarily allocated fixed expenses.
b.. To calculate the net income if Division B were closed down, the fixed expenses allocated to Division B ($96,000) would be eliminated from the company's total fixed expenses. The remaining fixed expenses and all variable expenses would still need to be accounted for to determine the net income.
c. The policy statement related to the allocation of fixed expenses should be based on a fair and reasonable allocation method that accurately reflects the contribution of each division to the overall company's expenses. Arbitrary allocation of fixed expenses can lead to misleading results and may not accurately represent the actual cost incurred by each division.
Learn more about expenses, here:
https://brainly.com/question/29850561
#SPJ4
GUYS PLEASE HELP ME!!!!!20 POINTS!!!!
Select the communication type that is being used in the following example.
Two co-workers near the copy machine are discussing the upcoming company meeting.
external formal communication
external informal communication
internal formal communication
internal informal communication
Answers
Answer:
exchange of information between people; the sending and receiving of messages. Communication can be separated into two groups verbal and non-verbal and again into formal or informal communications, an example of verbal and formal meaning communication is being conducted in a professional manner that's direct meaning face to face.
Explanation:
You are planning to invest $10,000 in a risky asset and a T-bill. The risky asset has an expected rate of return of 11% and a standard deviation of 22%. The T-bill provides a rate of return of 4.5% What dollar amounts should be invested in the risk-free asset and the risky asset, respectively, to form a complete portfolio with a standard deviation of 13.2%? Assume that you opened a brokerage account and purchased 500 shares of Bombster Energy at $60 per share on April 1 , 2021. To facilitate this transaction, you borrowed 40% of the value of the transaction from your broker. The broker charges a 6% interest per annum. On September 30, 2021 you sold Bombster Energy shares at $66 per share. Your holding period return and effective annual return are,
Answers
To form a portfolio with a standard deviation of 13.2%, $4,000 should be invested in the risk-free asset (T-bill), and $6,000 should be invested in the risky asset.
To form a complete portfolio with a standard deviation of 13.2%, the dollar amounts to be invested in the risk-free asset and the risky asset can be calculated using the capital allocation line (CAL) formula. The CAL equation is:
Standard Deviation of Portfolio = (Weight of Risky Asset × Standard Deviation of Risky Asset)
By rearranging the equation, we can solve for the weight of the risky asset:
Weight of Risky Asset = (Standard Deviation of Portfolio / Standard Deviation of Risky Asset)
Given that the standard deviation of the portfolio is 13.2%, and the standard deviation of the risky asset is 22%, we can substitute these values into the equation to find the weight of the risky asset.
Weight of Risky Asset = 13.2% / 22% = 0.6
To find the dollar amounts to be invested, we can multiply the weight of the risky asset by the total investment amount of $10,000:
Amount invested in risky asset = 0.6 × $10,000 = $6,000
Amount invested in risk-free asset = Total investment amount - Amount invested in risky asset = $10,000 - $6,000 = $4,000
Therefore, $4,000 should be invested in the risk-free asset, and $6,000 should be invested in the risky asset to form a complete portfolio with a standard deviation of 13.2%.
The calculation is based on the concept of portfolio diversification. By investing in a combination of a risk-free asset (T-bill) and a risky asset, we can create a portfolio with a desired level of risk represented by the standard deviation. The weight of the risky asset determines the allocation of funds between the risk-free and risky assets. In this case, the weight of the risky asset is calculated by dividing the standard deviation of the portfolio by the standard deviation of the risky asset. The resulting weight is then used to determine the dollar amount to be invested in each asset, with the remaining funds allocated to the risk-free asset.
Learn more about assets here: brainly.com/question/14826727
#SPJ11
Which sentence in the given text describes an element of the marketing mix that could help
John with sales?
John was working with his team on a product launch. He did some market research and
found some similarities between his product and those of the competitors.
(A) He knew that his product offered personalized service as part of the product
package, which was already done by some of his competitors
(B) The market was quite saturated and customers had plenty of options. The
advertising options that the competitors had were much more extensive than what
John could afford
(C) He knew that his cost of production was lower than that of his competitors, so he
could pass on some of those savings to his customers
(D) He chose to launch his product and display it at the same place where his
competitors sold their products
OB
ОА
OD
Answers
The sentence in the given text describes an element of the marketing mix that could help John with sale is He knew that his cost of production was lower than that of his competitors, so he could pass on some of those savings to his customers. Thus option C is correct.
What is marketing Mix?The marketing mix refers to the technique or model of any bsuiness that highlights important elements such as product, price, place, and promotion to make any business achieve its desired objective and seek growth.
These factors are affected any business growth so these factors are determined based on the needs and requirements of customers. In the given factors promotional mix plays a significant role as it influences customers to buy any product.
This marketing mix helps to identify customers' needs and to plan strategies to develop better customer reach. In the given option, all options provide elements of the marketing mix.
Option C helps john to improve his sales as it tells how to retain customers by engaging them effectively with the product and the brand offered.
Therefore, option C is appropriate.
Learn more about the Marketing mix, here:
https://brainly.com/question/14591993
#SPJ5
what is the best way for an organization to limit adverse reactions?
Answers
Controlling the conversation is the best way for an organization to limit adverse reactions
An organisation is a collection of people who cooperate to accomplish common objectives. All formally acknowledged human interactions are included in it, which can be seen as a social framework. The organisation includes the division of labour among employees and task alignment with respect to the organization's overall goal. Every team member's behaviour is affected by and shaped by the values, norms, and behaviours that make up the organization's culture. Consider the variety of characteristics that distinguish your business from the competition. While a dysfunctional office culture brings out tendencies that can hinder even the most vital activities, a strong workplace culture emphasises positive features that boost performance.
To learn more about organization refer here:
https://brainly.com/question/28477679
#SPJ4