Answer:
rate of return on the stock is 4%
Explanation:
given data
stock beta = 1.2
expected rate of return = 16%
market return = 10%
to find out
rate of return on the stock
solution
we get here rate of return on the stock hat is express as
rate of return on the stock = expected rate of return - ( stock beta × market return ) ...........................1
put here value we get
rate of return on the stock = 16 % - ( 1.2 × 10% )
rate of return on the stock = 0.16 - ( 1.2 × 0.10 )
rate of return on the stock = 0.16 - 0.12
rate of return on the stock = 0.04
rate of return on the stock is 4%
Answer:
A. Competitive and open markets.
C. A dependable legal system.
D. Political stability.
Explanation:
A Competitive and open Market ensures that people have enough incentives to invest in the development of factors of production because it rewards that investment with a healthy return. In a Competitive market, unfair competition will not be present therefore people will get equal opportunities to make returns.
A dependable Legal System and Political Stability go hand in hand to ensure that investors will have enough faith in the system to want to invest in Factors of Production. If a country is stable politically and abides by the rule of law, an investor will be assured that when they invest, these investments will be protected by the powers that be and their returns will not be impacted by political upheavals and breaches of contract that cannot be rectified.
Answer:
C. emphasize basic economic relationships by purposefully simplifying the complexities of the real world.
Explanation:
Answer:
Option (a) is correct.
Explanation:
Given that,
In 1975:
Nominal price = $0.10
CPI = 52.3
In 2005:
Nominal price = $1.00
CPI = 191.3
1975 is the base year
Real price in 2005;
= Nominal price in 2005 × (CPI in 1975 ÷ CPI in 2005)
= $1.00 × (52.3 ÷ 191.3)
= $0.273
Therefore, the real price of tennis ball in 2005 is $0.27 in terms of 1975.
The real price of tennis ball in 1975 is $0.10 because the base year is 1975 itself.
When we are comparing the real prices of the years 2005 and 1975, we conclude that tennis ball is cheaper in 1975 as compared to 2005.
The appropriate response is deregulation. Deregulation, the omission of some administration controls over a market, it permitted or constrained firms to contend by dispensing with many value controls and obstructions to section. The objective of deregulation is to promote competition.