Assume you are risk-averse and have the following three choices. Expected Value Standard Deviation A $ 2,200 $ 1,440 B 2,730 1,960 C 2,250 1,490 a. Compute the coefficient of variation for each. (Round your answers to 3 decimal places.) b. Which project will you select

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Answer 1

As a risk-averse individual, you would select the project with the lowest CV since it represents the lowest relative risk. In this case, Project A has the lowest CV at 0.654. This means that while the expected value of Project A may be lower than Projects B and C, the risk associated with Project A is also lower about its expected value. Therefore, you would select Project A.

The coefficient of variation (CV) is a measure of relative risk and can be calculated by dividing the standard deviation by the expected value. Using this formula, we can compute the CV for each project:

Project A:
Expected Value: $2,200
Standard Deviation: $1,440
Coefficient of Variation (CV) = Standard Deviation / Expected Value = 1440 / 2200 = 0.654 (rounded to 3 decimal places)

Project B:
Expected Value: $2,730
Standard Deviation: $1,960
Coefficient of Variation (CV) = Standard Deviation / Expected Value = 1960 / 2730 = 0.718 (rounded to 3 decimal places)

Project C:
Expected Value: $2,250
Standard Deviation: $1,490
Coefficient of Variation (CV) = Standard Deviation / Expected Value = 1490 / 2250 = 0.662 (rounded to 3 decimal places)

Coefficient of Variation:
A: 0.654
B: 0.718
C: 0.662

As a risk-averse individual, you would select the project with the lowest CV since it represents the lowest relative risk. In this case, Project A has the lowest CV at 0.654. This means that while the expected value of Project A may be lower than Projects B and C, the risk associated with Project A is also lower in relation to its expected value. Therefore, you would select Project A.

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Related Questions

Which budgeting method develops the promotion budget by 1) defining specific promotion objectives, 2) determining the tasks needed to achieve these objectives, and 3) estimating the costs of performing these tasks

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The budgeting method you are referring to is called the "task method" or "task-oriented budgeting." This method involves developing a promotional budget by breaking down the promotional objectives into specific tasks and estimating the costs of each task required to achieve those objectives.

The task method involves the following steps:

Define specific promotion objectivesDetermine the tasks needed to achieve these objectivesEstimate the costs of performing each taskSum up the costs of all tasks to arrive at the promotion budget.

This method is considered to be more effective and accurate than other budgeting methods because it takes into account the specific activities needed to achieve the promotional objectives. It also allows for better tracking of expenses and easier identification of areas where costs can be reduced or optimized.

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On July 15, Zink Jewels agrees to a contract to sell 4,000 promise rings for $100,000 to Costless Stores, Inc. On October 1, after 2,000 rings pair of have been delivered, Zink and Costless modify the agreement to reduce the price of the remaining 1,000 rings to $12 each. During October, Zink Jewels delivers 600 rings. How much revenue will Zink recognize for the month of October

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The revenue recognized by Zink Jewels for the month of October is $7,200.

To determine how much revenue Zink Jewels will recognize for the month of October, we need to calculate the revenue recognized from the delivery of the remaining 1,400 promise rings.

First, let's calculate the total revenue under the original agreement for the 4,000 promise rings:

Total revenue under original agreement = $100,000

Next, let's calculate the revised revenue under the modified agreement for the remaining 1,000 promise rings:

Revised revenue for remaining 1,000 rings = 1,000 rings x $12/ring = $12,000

The total revenue after the modification is $100,000 + $12,000 = $112,000.

Now, let's calculate the revenue recognized in October based on the delivery of the 600 promise rings:

Revenue recognized for 600 rings = 600 rings x $12/ring = $7,200.

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The Plucknette article suggests that there are considerable differences between being a leader and being a manager. Is it possible or desirable to be both? Chapter 2 of the Management textbook suggests that the four functions of management are planning, organizing, leading, and controlling. Provide one challenge posed by serving as a leader and one challenge posed by serving as a manager in each of these functions?

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Yes, it is possible and desirable to be both a leader and a manager. In fact, many successful individuals embody both traits in their roles. However, it is important to understand the differences between the two and to balance them appropriately in order to be effective.

One challenge of serving as a leader in the planning function is ensuring that all team members feel heard and their input is considered. Leaders must be able to foster an environment of collaboration and open communication, while still keeping the team on track towards the established goals. One challenge of serving as a manager in the organizing function is balancing the workload and responsibilities among team members. Managers must ensure that each team member is contributing equally and effectively, while also addressing any issues that may arise. One challenge of serving as a leader in the leading function is maintaining motivation and morale among team members. Leaders must be able to inspire and encourage their team, while also holding them accountable for their performance. One challenge of serving as a manager in the controlling function is balancing the need for control with the need for flexibility. Managers must be able to adapt to changing circumstances, while still maintaining a level of control over the team and their work processes. Overall, it is important for individuals to understand and balance the traits of both a leader and a manager in order to be successful in their roles.

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Able hired Carr to restore Able’s antique car for $800. The terms of their oral agreement provided that Carr was to complete the work within 18 months. Actually, the work could be completed within 1 year. The agreement is

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Able hired Carr to restore Able’s antique car for $800.  The agreement is Enforceable and valid.

Although the oral agreement between Able and Carr did not specify a deadline, it did establish a time frame of 18 months for the restoration work. However, since the work could actually be completed within a year, there is no issue of impossibility or impracticability. Therefore, the agreement is enforceable and valid under contract law. The fact that it is an oral agreement does not necessarily make it invalid, although it may be more difficult to prove the terms of the agreement without a written contract.

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A business that is willing to sacrifice some income in order to avoid doing harm to others is applying which theory of the social responsibility of business

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The business is applying the stakeholder theory of social responsibility. This theory suggests that businesses have a responsibility not only to their shareholders.

But also to other stakeholders who may be affected by their actions, such as employees, customers, suppliers, and the community. In this case, the business is prioritizing the well-being of others over its own profits, which is in line with the stakeholder theory. This approach to social responsibility recognizes that businesses operate within a broader social context and have a responsibility to consider the impact of their actions on all stakeholders, not just their shareholders.

Ultimately, the theory of social responsibility that a business chooses to adopt depends on its values, goals, and priorities. Some businesses may prioritize profits above all else, while others may prioritize the well-being of their stakeholders or the broader community.

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Firms must consider the impact of exchange rate risk if ________ of the project are affected by exchange rate changes

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Firms must consider the impact of exchange rate risk if cash flows of the project are affected by exchange rate changes.

Firms must consider the impact of exchange rate risk if cash flows of the project are affected by exchange rate changes. This is because exchange rate risk can affect the amount of cash flows a firm receives or has to pay out in foreign currencies.

For example, if a firm has a project that generates cash flows in a foreign currency, a change in the exchange rate can affect the amount of cash flows received when those foreign currency cash flows are converted back into the firm's domestic currency. Similarly, if a firm has to pay for inputs or services in a foreign currency, a change in the exchange rate can affect the amount of cash the firm has to pay out.

Therefore, firms must carefully consider exchange rate risk and use hedging strategies to manage their exposure to currency fluctuations that can impact the cash flows of their projects.

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Your question is incomplete but probably the full question is:

Firms must consider the impact of exchange rate risk if ________ of the project are affected by exchange rate changes.

A) cash flows

B) revenues

C) costs

D) capital costs

An offer is: Group of answer choices an unofficial suggestion of a promise a legally binding price for a good or service a suggestion of a price for a good or service a refusal to promise to do something or to refrain from doing some specific thing a promise to do something or to refrain from doing some specific thing

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An offer refers to a suggestion of a price for a good or service that is made by one party to another with the intention of forming a contract.

It is an expression of willingness to enter into a legal agreement on specific terms and conditions. The offer creates an expectation that the offeror is prepared to enter into a binding contract if the offeree accepts the proposal. However, an offer is not a legally binding price for a good or service until it is accepted by the other party.

An offer can be made verbally, in writing or through conduct, but it must be clear and definite so that the other party can understand its terms. Moreover, an offer may be withdrawn by the offeror before it is accepted, and it may lapse after a reasonable period or if the offeree rejects the proposal.

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In Reimbursement, ___________________ are organized by month and insurance company and have been submitted to the payer, but processing is not complete.

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In Reimbursements HIPPA 5010 are organized by month and insurance company and have been submitted to the payer, but processing is not complete.An electronic claim type called HIPPA 5010 is utilised to collect payment from insurance payers.

Under the HIPAA electronic data interchange (EDI) rule, electronic data transfers between covered firms must abide by certain data transmission requirements.These specifications describe the information that can be communicated as well as the formats and contents in which it can be communicated.The HIPAA EDI rule mandates that covered entities use the X12N EDI data transfer protocol. Specific data Code sets are required by this protocol from covered entities. ASC X12 Version 5010, commonly known as HIPAA 5010, is the designation of the current code set standard format.

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In deciding to raise needed capital for her company through the sale of stock, Karen Tagget has opted for _____ financing.

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In deciding to raise needed capital for her company through the sale of stock, Karen Tagget has opted for equity financing.

Equity financing involves selling ownership in a company, usually in the form of stocks, to raise capital. This method of financing does not require repayment of the funds received and provides investors with an ownership stake in the company, entitling them to a share of profits or voting rights in decision-making. It is often used by companies that are in the early stages of growth and do not yet have the cash flow to support borrowing. While it can be a more expensive form of financing, as investors expect a return on their investment, it can also be a useful tool for raising capital while avoiding debt.

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Moss County Bank agrees to lend the Shamrock Company $400000 on January 1. Shamrock Company signs a $400000, 4%, 9-month note. The adjustment required if Shamrock Company prepares financial statements on June 30 includes a(n)

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The adjustment required if Shamrock Company prepares financial statements on June 30 includes a detailed solution for accruing interest expense for the period from January 1 to June 30.

First, determine the interest that has accrued on the note for the period from January 1 to June 30 (6 months). The interest rate is 4% per year,

To calculate the interest for 6 months by multiplying the principal amount by the annual interest rate, and then by the portion of the year (6 months out of 12 months):

$400,000 x 4% x (6/12) = $400,000 x 0.04 x 0.5 = $8,000.

The adjustment required in the financial statements on June 30 includes recognizing $8,000 as Interest Payable (a liability) and Interest Expense (an expense).

In conclusion, the adjustment required for Shamrock Company's financial statements on June 30 includes recognizing an $8,000 Interest Payable and Interest Expense due to the 6 months of accrued interest on the $400,000, 4%, a 9-month note from Moss County Bank.

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For the current year debt working papers, auditors should obtain analyses of general ledger accounts for

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For the current year debt working papers, auditors should obtain analyses of general ledger accounts for liabilities and interest expense.

Debt working papers are a set of documents used by auditors to evaluate an organization's debt and financing arrangements. As part of this process, auditors should obtain analyses of general ledger accounts related to liabilities and interest expense. These analyses should include detailed information on the nature and amount of each liability, such as the terms of repayment, interest rates, and maturity dates. Additionally, auditors should review interest expense accounts to ensure that they are properly recorded and disclosed in financial statements. By obtaining and analyzing this information, auditors can gain an understanding of the organization's debt obligations and determine whether they have been properly accounted for in financial statements. This information is critical in assessing the organization's financial health and ability to meet its debt obligations.

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Muslim countries are receptive to most Disney products, but they have asked Disney not to include Piglet when it sells its Winnie the Pooh characters because Muslims (as a part of their religious beliefs) contend that pork in any form is unclean. This is an example of a _____ factor that directly affects Disney's global operation.

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Muslim countries' request to exclude Piglet from Disney's Winnie the Pooh characters is an example of a cultural factor that directly affects Disney's global operation.

Culture refers to the shared beliefs, values, customs, behaviors, and artifacts that characterize a group or society. Muslim countries' request to exclude Piglet from Disney's Winnie the Pooh characters is a manifestation of cultural factors that affect business operations in global markets. In many cultures, certain symbols or images may be considered inappropriate or offensive, and this can directly impact the marketing and distribution of products. Disney, as a global company, must be aware of and sensitive to cultural differences and preferences to effectively operate in various markets. By respecting cultural norms and values, companies can build goodwill with local consumers, avoid backlash, and improve their brand image.

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Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ____ structure.

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Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a decentralized structure.

In a decentralized structure, decision-making authority is distributed across various levels of the organization, allowing for more flexibility and adaptability. This structure is suitable for firms that engage in exporting, licensing, and trading companies as their international market entry strategy, as it enables them to efficiently manage the complexities and risks associated with global business operations.

By utilizing these modes of entry, firms can take advantage of local expertise, minimize investment risks, and gain access to established distribution channels, thereby increasing their chances of success in international markets.

In summary, a decentralized organizational structure is well-suited for firms that opt for exporting, licensing, and trading companies as their preferred modes of international market entry.

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Suppose Ford Motor Company have 10 years remaining to maturity. Interest is paid annually; the bonds have a $1,000 par value; and the coupon interest rate is 12 percent. Compute the yield to maturity for the bonds if the current market price is $910

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The yield to maturity for the Ford Motor Company bonds is approximately 6.60%.

The yield to maturity (YTM) is the total return anticipated on a bond if held until it matures. To calculate the YTM for Ford Motor Company bonds with a 10-year maturity, $1,000 par value, 12% coupon rate, and a current market price of $910, we can use the following formula:
YTM = [(annual interest payment + (par value - market price) / years to maturity) / (par value + market price) / 2] x 100%
First, we need to calculate the annual interest payment, which is 12% of the par value, or $120. Next, we need to calculate the difference between the par value and the market price, which is $1,000 - $910 = $90. Then, we divide this by the number of years to maturity, which is 10, to get $9. Finally, we can plug these values into the formula to get:
YTM = [(120 + 9) / (1,000 + 910) / 2] x 100%
YTM = (129 / 1,955) x 100%
YTM = 6.60%Therefore, the yield to maturity for the Ford Motor Company bonds is approximately 6.60%.

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4. What launch price do you recommend MediCult should charge for a single dosage of the IVM medium in the US market, and why

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The launch price that we would recommend MediCult should charge for a single dosage of the IVM medium in the US market is $12.

Setting the right price for a product is crucial for a company's success. MediCult should carefully analyze the costs, competition, demand, and profitability before setting the price for its IVM medium in the US market.

Firstly, MediCult should consider the costs associated with producing and distributing the IVM medium. These costs include raw material costs, manufacturing costs, packaging, shipping, and handling expenses.

Lastly, MediCult must ensure that the price of the IVM medium is profitable and sustainable in the long term, taking into account future costs and revenue streams.

In mathematical terms, the price of the IVM medium can be determined using the following formula:

Price = Total Costs + Profit Margin

Total costs include all the costs associated with producing and distributing the IVM medium. The profit margin is the percentage of the selling price that represents the profit to the company.

If MediCult's total cost for producing and distributing a single dosage of the IVM medium is $10, and they want to earn a 20% profit margin, the price they should charge for the IVM medium can be calculated as follows:

Price = $10 + (20% x $10) = $12

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Money is a. anything that people generally accept in exchange for goods and services. b. a financial instrument backed by some precious metal such as gold or silver. c. a synonym for income. d. whatever the government defines it to be.

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The correct answer is a. Anything that people generally accept in exchange for goods and services.

Money is a medium of exchange that is accepted in transactions for goods and services. It can take the form of coins, banknotes, or digital currencies. It serves as a unit of account, a store of value, and a standard of deferred payment. While money has historically been backed by precious metals like gold or silver, most modern money is not backed by any physical commodity. Instead, it derives its value from its acceptance as a means of exchange in a particular economy. While governments play a role in defining and regulating the money supply, the acceptance and use of money ultimately depends on the actions and beliefs of individuals and businesses in an economy.

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The extent to which a change in the exchange rate leads to changes in import and export prices is known as

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The extent to which a change in the exchange rate leads to changes in import and export prices is known as the exchange rate pass-through.

What's the exchange rate pass-through concept

This concept measures the sensitivity of import and export prices to fluctuations in the exchange rate.

A high pass-through indicates that a currency's depreciation or appreciation significantly impacts the prices of imports and exports, while a low pass-through suggests that price changes are less responsive to exchange rate movements.

The exchange rate pass-through affects the competitiveness of a country's products in international markets.

a currency depreciates, export prices may decrease, making products more attractive to foreign consumers, leading to increased demand and higher export volumes.

Conversely, a currency appreciation can make imports cheaper, benefiting domestic consumers as they can buy foreign products at lower prices.

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Side effects from investing in a project refer to cash flows from: Multiple select question. opportunity costs. erosion effects. beneficial spillover effects. sunk costs.

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Side effects from investing in a project can refer to a variety of cash flows, including opportunity costs, erosion effects, beneficial spillover effects, and sunk costs. Opportunity costs represent the benefits foregone by choosing one investment opportunity over another.

Erosion effects refer to the negative impact that a project may have on other parts of the economy, such as reducing the market share of competing firms. Beneficial spillover effects occur when a project generates positive externalities, such as creating jobs or promoting technological innovation. Sunk costs are the costs that have already been incurred and cannot be recovered. All of these factors should be considered when evaluating the potential side effects of an investment project.

The side effects of investing in a project refer to cash flows from opportunity costs, erosion effects, and beneficial spillover effects.

Opportunity costs represent the potential cash flows lost from choosing one investment over another. Erosion effects refer to the potential negative impact of a new project on the cash flows of existing projects. Beneficial spillover effects occur when a new project positively affects the cash flows of existing projects, generating additional benefits. Sunk costs are not considered as they are costs that have already been incurred and cannot be recovered or changed, regardless of the investment decision.

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Your Company makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system. The company's cost records for June show the following data: Number of units produced............. 10,000 Material price variance.................. $9,800 Favorable Material quantity variance............. $8,000 Unfavorable Actual direct material used............ 21,000 pounds Direct materials standard price...... $5 per pound What is the standard for pounds per unit

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The standard for pounds per unit can be calculated using the data provided.

First, we need to understand the concept of standard cost. It is the predetermined cost of producing one unit of product, which includes the direct materials, direct labor, and manufacturing overhead. In this case, we are only concerned with the direct materials cost.

The standard cost of direct materials per unit can be calculated by multiplying the standard price per pound with the standard quantity per unit. Since we have the standard price per pound as $5, we need to find the standard quantity per unit.

To find the standard quantity per unit, we can use the formula:

Standard Quantity per Unit = Actual Quantity Used / Number of Units Produced

In this case, the actual quantity used is 21,000 pounds and the number of units produced is 10,000. Therefore,

Standard Quantity per Unit = 21,000 / 10,000 = 2.1 pounds

So, the standard for pounds per unit is 2.1 pounds. This means that the company uses 2.1 pounds of direct material to produce one unit of the product.

The material price variance of $9,800 favorable suggests that the company purchased the direct material at a lower price than the standard price. However, the material quantity variance of $8,000 unfavorable suggests that the company used more material than what was expected. The company may need to investigate why the material usage was higher than expected and take corrective actions if necessary to improve efficiency.

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What are the potential pitfalls of drastically increasing the number of financial transactions you or a company is responsible for in a given period of time (e.g., buying groceries or raw materials in very small quantities)?

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There are several potential pitfalls of drastically increasing the number of financial transactions that you or a company is responsible for in a given period of time:

Increased transaction costs: With a higher number of transactions, there is a greater chance of errors and mistakes, which can result in additional costs associated with fixing those errors. This can include fees for correcting transactions, as well as the cost of additional staff needed to manage and process the increased number of transactions.

Reduced efficiency: A higher number of transactions can result in reduced efficiency, as it may take longer to process and reconcile transactions. This can lead to delays in payments and the procurement of goods, which can impact the overall operations of a business.

Increased risk of fraud: An increase in the number of transactions can make it easier for fraudulent activities to go undetected. This can include fraudulent transactions or the theft of funds through fraudulent means, which can result in significant financial losses.

Increased complexity: As the number of transactions increases, the overall complexity of managing and processing those transactions also increases. This can make it more difficult to keep track of financial records and to ensure compliance with relevant laws and regulations.

Cash flow management: A high volume of transactions can also make cash flow management more difficult. This is particularly true when transactions are small, as it can be harder to predict and manage cash inflows and outflows.

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The capitalization rate is the sum of the discount rate and the growth rate of the cash flow in the terminal period. Group of answer choices True False

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The capitalization rate is the sum of the discount rate and the growth rate of the cash flow in the terminal period that is the given statement is false.

The capitalization rate is a term used in finance and real estate to describe the rate of return on a property based on the expected income that the property will generate. It is calculated by dividing the net operating income (NOI) of the property by its current market value or sales price. The resulting rate represents the yield that an investor can expect to receive on their investment in the property.

On the other hand, the discount rate is used in financial modeling to calculate the present value of future cash flows. It is the rate used to discount future cash flows back to their present value, taking into account the time value of money and the risk associated with the investment.

The growth rate of the cash flow in the terminal period is also a factor in determining the value of an investment. This is the expected rate at which the cash flows are expected to grow beyond the terminal year. However, it is not added to the discount rate to calculate the capitalization rate. Instead, it is used in a separate calculation to determine the terminal value of the investment.

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The Fed does not rely on discount window as its principal tool to adjust the money supply because

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Because if it were to rise above the Fed’s discount rate, banks would borrow reserves from the Fed instead of borrowing them from other banks in the fed funds market.

To deal with temporary liquidity shortfalls caused by internal or external shocks, eligible institutions can obtain money from the central bank, usually in the short term, through a discount window, a monetary policy tool usually controlled by the central bank. can be borrowed.

The discount rate, policy rate, base rate or repo rate are the interest rate terms set on these loans by the central bank. Different from prime rate. Neither is the Federal Funds Rate, which sets the rate at which banks lend money to each other, or their equivalent in other currencies. The discount rate was recently about 1% above the federal funds rate (see Lombard loans). As such, it has a relatively minor role in regulating the money supply and is only widely used when necessary.

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Complete question:

The Fed does not rely on discount window as its principal tool to adjust the money supply because?

A deadweight loss of consumer and/or producer surplus occurs when: a. mutually beneficial transactions cannot be completed. b. consumers do not maximize their utility. c. producers fail to maximize profits. d. the price of inputs increases.

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A deadweight loss of consumer and/or producer surplus occurs when mutually beneficial transactions cannot be completed.

This means that there is a market inefficiency that prevents trades that would be mutually beneficial for both parties from taking place. This can be due to various reasons such as price floors, price ceilings, taxes, subsidies, quotas, or other government interventions that create market distortions.

As a result, some transactions that would have been made in a free market are not made, leading to a loss of both consumer and producer surplus. In summary, a detailed answer is that a deadweight loss occurs when market inefficiencies prevent mutually beneficial transactions from taking place, leading to a loss of consumer and producer surplus.

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If the Fed increases the money supply, then 1/P A. rises, so the value of money rises. B. rises, so the value of money falls. C. falls, so the value of money rises. D. falls, so the value of money falls.

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An increase in the money supply by the Fed will lead to an increase in the price level and a decrease in the value of money. This can have significant effects on the economy, including inflation, changes in interest rates, and changes in exchange rates. The correct option is b.

If the Fed increases the money supply, then the demand for goods and services also increases due to the availability of more money in the economy. As a result, prices of goods and services are likely to increase. This increase in prices is reflected in the inverse relationship between the price level (P) and the value of money (1/P).

Therefore, if the Fed increases the money supply, the price level (P) will rise, and the value of money (1/P) will fall. To explain this in terms of the options given, we can eliminate options A and C as they suggest that the value of money rises when the price level rises, which is incorrect. Option D suggests that both the price level and the value of money fall when the Fed increases the money supply, which is partially correct. The correct option is B, which states that the price level rises, and the value of money falls when the Fed increases the money supply.

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If an investor buys a stock when its price has increased 2 percent from its previous price, the investor is employing: Group of answer choices a sentiment indicator. relative strength analysis. a contrarian indicator. a filter rule.

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If an investor buys a stock when its price has increased 2 percent from its previous price, the investor is employing a filter rule. Therefore, the correct option is option 4.

A filter rule is a strategy that sets certain criteria or filters that a stock must meet before it can be bought or sold. In this case, the investor has set a filter that the stock must have increased in price by at least 2 percent from its previous price before they will buy it.

This is not a sentiment indicator, which is a measure of market sentiment or investor psychology, nor is it a contrarian indicator, which goes against the prevailing market trend. It is also not relative strength analysis, which compares the performance of one stock to the broader market or its peers.

Instead, the investor is using a specific rule to guide their decision-making process. Hence, the correct answer is option 4: a filter rule.

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If James lowers his price from $11 to $10, the total effect from both the quantity effect and the price effect is:

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The total effect from both the quantity effect and the price effect when James lowers his price from $11 to $10 depends on the price elasticity of demand for his product.

If the demand for James' product is relatively elastic, the quantity effect will be greater than the price effect and the total effect will lead to an increase in total revenue. However, if the demand for his product is relatively inelastic, the price effect will be greater than the quantity effect and the total effect will lead to a decrease in total revenue. In general, if the price elasticity of demand is between 0 and 1, a decrease in price will result in a smaller increase in quantity demanded, leading to a decrease in total revenue.

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If the social costs of an economic activity are $200 and the private costs are $165, then the external costs of the activity are ____, and market failure _______.

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If the social costs of an economic activity are $200 and the private costs are $165, then the external costs of the activity are $35, and market failure occur due to presence of external cost. Market failure occurs when the market fails to allocate resources efficiently due to externalities, such as external costs. In this case, the private costs do not account for the full costs of the economic activity, which leads to an overproduction of the activity.


To find the external costs of the economic activity, we need to subtract the private costs from the social costs. In this case:
External costs = Social costs - Private costs => External costs = $200 - $165
External costs = $35
Market failure occurs when the allocation of goods and services by the market is not efficient, usually because of the existence of externalities. In this case, there are external costs of $35, which means that there is a difference between the private costs and the social costs. This difference causes the market to fail in efficiently allocating resources.
So, the external costs of the activity are $35, and market failure occurs due to the presence of these external costs.

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If a functional manager will NOT release the resources you need as project manager, your best course of action is to: quzlet

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The best course of action for a project manager, if a functional manager refuses to release the needed resources, is to notify top management of the consequences. The answer is C)

When a functional manager denies the necessary resources for a project, it can significantly impact the project's progress and success. In such a situation, the project manager should escalate the issue and notify top management of the consequences that may arise due to the resource constraints.

This action is crucial because top management holds the authority to address interdepartmental conflicts and make decisions that can resolve resource allocation challenges.

By notifying top management, the project manager brings attention to the issue, highlights the potential negative impact on the project, and seeks a resolution.

Hence, the correct option is: C)

The complete question is:
If a functional manager will not release the resources you need as project manager, your best course of action is to:

A) adjust project schedules and priorities accordingly.

B) try to negotiate for partial assistance.

C) notify top management of the consequences.

D) update your resume.

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At the statement date, each computer has a net realizable value of $370. How much loss should Waterway, Inc., record for the year

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Inc.'s inventory accounting method and the quantity of computers they have in their inventory.

However, assuming that Waterway, Inc. uses the lower of cost or market method for valuing their inventory and that they have 100 computers in their inventory, and the cost of each computer is $400, the loss that Waterway, Inc. should record for the year would be $3,000 ($30,000 net realizable value - $33,000 cost). This is calculated by taking the difference between the cost of the inventory and the net realizable value of the inventory.

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What is the difference between the cost of the plant asset and the accumulated depreciation to date? estimated value fair market value book value scrap value

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The terms you mentioned have different meanings related to the accounting and valuation of plant assets.

1. Cost of the Plant Asset: The cost of a plant asset refers to the total amount of money or consideration paid to acquire the asset. It includes all costs necessary to get the asset ready for its intended use, such as purchase price, transportation costs, installation fees, and any other directly attributable costs. The cost of the plant asset is recorded initially on the balance sheet and is subsequently used to calculate depreciation.

2. Accumulated Depreciation: Accumulated depreciation is the cumulative amount of depreciation expense recognized over the life of a plant asset. Depreciation is the systematic allocation of the cost of a plant asset over its useful life. It represents the reduction in the asset's value due to wear and tear, obsolescence, or other factors. Accumulated depreciation is a contra-asset account that is subtracted from the cost of the asset on the balance sheet. It provides an indication of the total depreciation charged against the asset since its acquisition.

3. Estimated Value: Estimated value refers to the estimated worth or fair market value of a plant asset. It represents the approximate amount that the asset could be sold for in an open market transaction. Estimated value is usually determined by considering factors such as the asset's condition, age, demand, and market conditions. It may be used for purposes such as financial reporting, insurance, or determining the asset's potential selling price.

4. Fair Market Value: Fair market value is the price at which a plant asset would be exchanged between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts and neither being under any compulsion to buy or sell. It represents the current value of the asset in an open and unrestricted market.

5. Book Value: Book value, also known as carrying value or net book value, is the value of a plant asset as recorded on the company's balance sheet. It is calculated by subtracting the accumulated depreciation from the cost of the asset. Book value represents the net amount at which the asset is reported on the balance sheet and is an important metric for determining the asset's worth to the company.

6. Scrap Value: Scrap value, also known as salvage value or residual value, is the estimated value of a plant asset at the end of its useful life or when it is no longer productive for the company. It represents the expected proceeds from selling or disposing of the asset after deducting any removal or disposal costs. Scrap value is used in depreciation calculations to determine the amount of depreciation to allocate over the asset's useful life.

In summary, the cost of a plant asset is the initial amount paid to acquire the asset, while accumulated depreciation represents the total depreciation charged against the asset over time. Estimated value and fair market value refer to the approximate worth of the asset in the market, while book value is the net value recorded on the balance sheet. Scrap value is the estimated value of the asset at the end of its useful life or when it is no longer productive.

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