Answer:
1.03
Explanation:
Beta is used to measure systemic risk. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors.
Systemic risk are risk that are inherent in the economy. They cannot be diversified away.
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighed beta of a stock = percentage of the stock in the portfolio x beta of the stock
Stock Q = 0.35 x 1.34 = 0.469
Stock R = 0.25 X 0.88 = 0.22
Stock S = 0.15 x 0.57 = 0.0855
Stock T = 0.25 x 1.02 = 0.255
Portfolio beta = 0.469 + 0.22 + 0.0855 + 0.255 = 1.0295 = 1.03
The answer to this question is the choice 'a recession'. The period of decline in real GDP and other factors in the economy such as the blue-shaded period in 1948 is called a recession.
In order for "limit pricing" to be effective, the firm practising such a strategy must be able to charge a price that is lower than the potential entrant's ATC but greater than the firm's own ATC.
Explanation:
A pricing strategy is a level where products are sold by a supplier at an expense that is cheap enough to make the market unprofitable for others. Monopolies use it in order to discourage market entry and in many cases it is illegal.
It is not able to sustain a monopolistic-ally profitable firm where P = MC and growth, with a long-run balance, generates an efficiency that approaches the minimum possible in an ATC business. Profit so long as potential customers can not enter the market.
Answer: The law of demand
Explanation:
The tabular representation (demand schedule is down below)
Price of Juice (Dollars per can) Quantity Demanded(Billions of can)
2000 0.5
1500 0.75
1000 1
750 1.25
From the table above and the graphical representation attached, <u>the law of demand</u> is confirmed. The law of demand states that the price of a good and the quantity demanded are inversely proportional.
Notice that when the price of the juice increases, the demand decreases and when the price decreases, the demanded increases. This shows that majority of consumers will be more willing to make purchases when there is a decrease in price.
Check the attachment for the graphical representation.
Answer:
The correct answer is letter "C": Offer to make the changes to the product and explain to your supervisor what happened.
Explanation:
In front of every problematic situation, a solution must be offered beforehand. If the other party is alleging were are guilty of something, we must review what or role in the situation was to confirm if we did what we were requested to do. Just like in the example, the guidelines we were hired for were met but the client replied stating they were not. In such a case, the whole situation must be explained to the supervisor in charge.
