The stock market is a market where shares are traded. These shares determine their value with the help of determinants like demand ,supply and other factors which result in the profits and losses for share traders.
Therefore the CEO was having and inside information about government policies and she used that information for gaining undue advantage, so can be said as guilty of insider trading, OPOTION C is correct.
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Answer:
The correct answer is (C)
Explanation:
Simone the CEO of a pharmaceutical company has sold company stock because of inside information. Any trade which results due to inside information is known as insider trading. Any information which is not public is known as inside information that leads to abnormal profits. Government, company owners and stock market officials are the ones who generally have such type of information.
b. What will its future value be if the CD pays 5 percent interest? If it pays 15 percent interest?
B.Maria is more risk-averse than Jennifer because Maria is choosing a bond with lower volatility of its expected return.
C.There is not enough information to tell. In order to decide whether Maria or Jennifer is more risk averse, one will need to compare two bonds with the same expected return and different standard deviations of their expected returns.
Answer: The correct answer is "A.Maria is less risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.".
Explanation: We can measure the risk according to the standard deviation of its expected return, therefore: Maria is less risk averse because she is willing to take more risk in order to obtain a higher return and Jennifer instead prefers to sacrifice performance in order to be less exposed to risk.
Maria is less risk-averse than Jennifer because she chooses a bond with a higher expected return and a higher standard deviation, indicating a willingness to accept more risk.
This question involves the concepts of expected return and risk associated with investments, particularly bonds. Risk-aversion is the degree to which an investor prefers lower risk when investing. Maria, who prefers a bond with a 7% expected return and a 2% standard deviation, is displaying characteristics of being less risk-averse than Jennifer, who prefers a bond with a 4% expected return and a 1% standard deviation. This is because a higher standard deviation indicates a higher degree of risk, which Maria is willing to accept for the potential of a higher return.
Therefore, the correct answer is A. Maria is less risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.
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Answer:
Labor to be variable and capital to be fixed
Explanation:
Christine started off a new firm and only needed her own labor and a computer.
As the business grows there will be more work to be done, so her personal labor will be insufficient. There will be need for extra hands to get tasks done, and also people with specialised skills will need to be hired. Labor will be variable because it will change according to business needs. More employees when work is much and scale down on labor when work is less.
Capital needs will increase to effectively support the growing business, for example tables, chairs, computers, stationery, an office, and other equipment. Capital obtained will be fixed in nature especially land, office building, and office equipment.
b. Balance of trade calculates the top producing nations; balance of payments calculates the weakest producing nations.
c. Balance of trade summarizes the flow of goods and services; balance of payments summarizes all capital flows.
d. Balance of payments helps find out ...