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2 years ago

Which of the following factors would NOT hamper economic development?

1 answer:

4 0

A.
B,C and D all have impacts on the economy's ability to grow and destroy itself, A however is pretty much only beneficial to the economy

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Other things held constant, which of the following events is most likely to encourage a firm to increase the amount of debt in i

True [87]

Answer: Option (c) is correct.

Explanation:

Correct Option: The corporate tax rate increases.

If there is an increase in the corporate tax rate then this will induce the firms to increase the amount of their debt. This is due to the fact that the firms with more debt are going to pay less tax because of the large interest expense. Due to large interest expenses, their income before tax reduces.

Hence, large corporate taxes encourage firms to increase the amount of debt. Therefore, the firms with no debt pays higher taxes than the firms with higher amount of debt.

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2 years ago

If the government wants to reduce smoking it should impose a tax on

blsea [12.9K]

Import of cigarettes

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2 years ago

Suppose the same client in the previous problem decides to invest in your risky portfolio a proportion (y) of his total investme

loris [4]

Answer:

An investor is going to invest some amount of total investment in a risky portfolio which has the expected return of 17% and standard deviation of 27%. The remaining amount will be invested in the T-bills which has the expected return on 7%.

The risky portfolio includes stock A, stock B, and stock C.

By investing in risky portfolio and T-bills, the expected return on the portfolio will be 15%.

Proportion of risky portfolio in investors investment budget can be calculated by using the following equation:

$E(r_{c}) - r_{r} = y[E(r_{p} ) - r_{r} ]$

Here,

Risk-premium of client's overall portfolio is $E(r_{c})-r_{r}$

Risk-premium of client's risky portfolio is $E(r_{p})-r_{r}$

Expected return on client's overall portfolio is $E(r_{c})$

Expected return on client's risky portfolio is $E(r_{p})$

Proportion of risky portfolio in client's overall portfolio is y.

Risk-free rate on Treasury bill is

This equation represents the relationship between risk-premium of risky portfolio, risk-premium of investor's overall portfolio and the proportion of risky portfolio in investor's overall portfolio.

Calculate the proportion of risky portfolio as follows:

$E(r_{c}) - r_{r} = y[E(r_{p} ) - r_{r} ]$

0.15 - 0.07 = y (0.17 - 0.07)

0.08 = y (0.10)

y = 0.08/0.10

Y = 0.80 (or) 80%

Hence, the proportion of risky portfolio in investor's overall portfolio (y) is 80%

3 0

2 years ago

DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal wi

mihalych1998 [28]

Answer:

Constraints

Explanation:

Constraints is a restriction to decision making.

Direct protect insurance are faced with constraints in their decision making process of introducing their new product, so they are looking for means of overcoming the constraints.

Directprotect insurance provider is facing a constraint in the introduction of it's new product in the market. Direct protect faces the problem of prediction of how successful the new product will be when introduced.

The constraint is the bottleneck to the introduction of their new product in the market.

After a research have been carried out, Direct protect analyzed the responses obtained in order to determine if customers in different countries are different from each other. The results of the analysis will help in making appropriate decision in overcoming their constraints and satisfy customers from different countries with different needs.

The new product can be introduced when the constraints have been overcomes.

4 0

2 years ago

Read 2 more answers

Walmart can achieve a _____ using its relationships with suppliers to create an advantage that, ultimately, allows it to give cu

Colt1911 [192]

Answer:

cost leadership/competitive advantage

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1 year ago