Kurt's Adventures, Inc. stock is quite cyclical. In a boom economy, the stock is expected to return 30% in comparison to 12% in a normal economy and a negative 20% in a recessionary period. The probability of a recession is 15%. There is a 30% chance of a boom economy. The remainder of the time the economy will be at normal levels. What is the standard deviation of the returns on Kurt's Adventures, Inc. stock

Answers

Answer 1

Answer:

15.83%

Explanation:

Calculation to determine is the standard deviation of the returns on Kurt’s Adventures, Inc. stock

First step is to determine l E(r)

E(r) = (.30 *.30) + (.55 *.12) + (.15 *-.20)

E(r)= .09 + .066 -.03

E(r)= .126

Second step is to determine Var

Var = .30 *(.30 -.126)^2 + .55 *(.12 -.126)^2 + .15 *(-.20 -.126)

Var=0090828 +.0000198 + .0159414

Var= .025044

Now let determine the Std dev

Std dev = √.025044 = .15825

Std dev= 15.83 percent

Therefore the standard deviation of the returns on Kurt’s Adventures, Inc. stock.is 15.83 percent


Related Questions

Trình bày khái niệm đặc điểm của môi trường vĩ mô, môi trường vĩ mô gồm những yếu tố nào, phân tích môi trường kinh tế trong môi trường vĩ mô ? Ví dụ

Answers

Môi trường vĩ mô là môi trường trong đó, các yếu tố là những nguồn lực, thể chế bên ngoài có khả năng tác động, ảnh hưởng tích cực hoặc tiêu cực đến hoạt động Marketing của doanh nghiệp và các yếu tố trong môi trường vi mô của doanh nghiệp.

A resource-based strategy Multiple choice question. focuses on efficient execution of both primary and supporting components of the company's value chain. targets areas of potential cost-reduction in the company. can be achieved by exploiting resources that are competitively valuable, rare, and hard to imitate by rivals. will only be effective it if overcomes all weaknesses identified through a SWOT analysis.

Answers

Answer:

can be achieved by exploiting resources that are competitively valuable, rare, and hard to imitate by rivals

Explanation:

A resource-based strategy is a form of the technique used by business managers to efficiently utilized the existing and valuable resources of the firm. These resources would be difficult to come by for the competitors such that it is hard for competitors to replicate. Thereby leading a sustainable or long term competitive advantage to the firm

Hence, in this case, the correct answer is A resource-based strategy "can be achieved by exploiting resources that are competitively valuable, rare, and hard to imitate by rivals."

Acme, Inc., which manufactures the fireworks that municipal governments buy to put on their annual fireworks shows on the Fourth of July, moved most of its manufacturing operations from the United States to China a decade ago. Now, Spark is moving production back to the United States because the company's managers are uncomfortable with many Chinese business practices. Acme, Inc. engages in ________ when it moves its operations back to the United States. Group of answer choices offshoring reshoring outsourcing globalizing countertrading

Answers

Answer:

I believe this answer would be reshoring.

Explanation:

I'm sorry in advance if this is wrong, if it is let me know and I will correct it.

During the month of March, Harley's Computer Services made purchases on account totaling $47,100. Also during the month of March, Harley was paid $13,400 by a customer for services to be provided in the future and paid $38,700 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $79,100, what is the balance in accounts payable at the end of March?

Answers

Answer:

$87,500

Explanation:

Balance in accounts payable = Opening balance + Purchase - Amount paid

Balance in accounts payable = $47,100 + $79,100 - $38,700

Balance in accounts payable =

So, he balance in accounts payable at the end of March is $87,500.

What is the difference between total output and labour productivity?

Answers

Answer:

Productivity is the rate of efficiency by which a company produces goods and services. Thus, output is only one part of the equation used to measure efficiency. ... If the company spends more on its input than it receives in output, it is not efficient.

Checkable and debitable accounts in commercial banks and other financial institutions are classified as money because A. they sometimes earn an interest income for the depositor. B. banks hold currency in their vaults equal to the value of demand deposits. C. they are not liabilities of the banks. D. they are generally acceptable in the payment of debt.

Answers

Answer:

The answer is D.

Explanation:

Option D. They are generally acceptable in the payment of debt is correct. Checkable and Debitable are very liquid as they can be easily convertible to money. That is, it is indirectly like money.

Option B is wrong as it is not related to the question atal.

Option C is wrong because all customers' deposit are the liabilities of the banks.

A state licensing fee on sales of medical devices causes the supply curve for one type of device to shift from S1 (without the fee) to S2 (with the fee). The fee is based on number of units sold and therefore works like a per-item tax paid by sellers. Use the area tool to draw the area representing the state's monthly revenue from the licensing fee for this one type of device.

Answers

Answer: hello your question is incomplete attached below is the complete question

answer ; Government revenue from tax = $750,000 per month

Explanation:

Attached below is the required graph

Government revenue from tax ( per month )

= ( 450 - 30 ) ( 50 - 0 )

= $750,000 per month

D. Short answer questions:
a. Compare the monopoly’s price and quantity with that of a
perfectly competitive firm’s. Which is better for the consumer?
b. How can government regulation of a monopoly increase the
allocative efficiency of the monopoly?

Answers

Answer:

Explanation:

a. Monopoly has no competition so it can charge a higher price and produce less quantity when compared to a perfectly competition.  For a consumer, perfectly competition which provides more goods at a lower price is better.

b. Due to lack of competition, monopoly does not have to be efficient in its resource allocation.  To increase the allocative efficiency, the government can pass regulation to limit price charged and increase quantities of goods produced by the monopoly.

Answer:

Explanation:

compared 2 perfectly competitive firms, monopoly charges higher price and produces less quantity.

perfectly competitive firms are better for consumer

govt regulation can increase monopoly's efficiency by putting restriction on price n requiring quantity of goods produced.

Jason and Ed have a business idea that they plan to commercialize. They approach an independent investor to raise funds for their business. If they can impress the investor with their business idea, the investor will agree to provide the necessary amount of money in return for some ownership share in the company. The independent investor that Jason and Ed are banking on is referred to as a

Answers

Answer:

The answer is "venture capitalist".

Explanation:

The venture capitalists are a private equity adequate time and resources equity to companies with a high potential for growth in exchange for an equity stake. This might finance new companies or support local businesses that want to expand but don't have access to equity markets. It aims to generate returns to individual liability thru the financing of innovations and through the assistance of businesses.

A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external capital market can for all the following reasons EXCEPT: a. corporate headquarters can allocate capital according to more specific criteria than is possible with external market allocations. b. corporate headquarters has more complete information about the subsidiary businesses than the external capital market. c. the firm can acquire other firms with innovative products instead of allocating capital to research and development. d. corporate headquarters can more effectively discipline underperforming management teams through resource allocation than can the external market.

Answers

Answer: C. the firm can acquire other firms with innovative products instead of allocating capital to research and development

Explanation:

Unrelated Diversification is regarded as a diversification which takes place when a company adds an unrelated product to its business. For example, when an television manufacturer enters into a clothing business.

A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external capital market can for all the following reasons except when the firm can acquire other firms with innovative products instead of allocating capital to research and development.

Calculate how many hours his non-salary employees will take to create a large order of 1,000 shoes. What kind of budget would Jose create?

Answers

This question is incomplete but will answer this based on what I guess you're asking.

Answer and Explanation:

Assume there are 10 employees for the small factory that makes shoes.

Let's assume each non-salary employee spends 30 minutes on each pair of shoes before it finishes, and charges $10 per hour.

1000 pairs of shoes would take 1000×0.5×10= 5000 hours(208 days and a few hours)

Total budget for non-salary employees= 5000 hrs×$10= $50000

Therefore Jose would need a $50000 budget given the variables above.

Centre City enacts an ordinance that bans the distribution of all printed materials on city streets. Diners Café opposes the city’s latest "revenue-enhancing" measure—a tax on prepared food sales—and wants to protest by distributing handbills. In Diners’ suit against the city, a court would likely hold the ban on printed materials to be

Answers

Answer: unconstitutional under the First Amendment.

Explanation:

From the information provided, in Diners’ suit against the city, the court would likely hold the ban on printed materials to be unconstitutional under the First Amendment.

Under the First Amendment, any law that limits or ban freedom of expression, religion, peaceful assembly, petitioning of the government is prohibited. Therefore, the action of the city is unconstitutional.


Which statement best describes an artifact that a company would have as
part of its organizational culture?
A. Employees are encouraged to present any new ideas they may
have to their supervisors.
B. The company's mission statement makes it clear that it believes in
employee equality
C. The company offers all its employees health insurance and a
retirement plan
D. The managers assume that everyone understands that
climate must be healthy.
corporate

Answers

Answer:

A

Explanation:

Organisational culture can be described as as shared beliefs and practices that inform the best way to behave in an organisation.

Types of Organisational culture

1. Clan culture : it emphasizes teamwork among employees in the organisation

2. Adhocracy culture - emphasises and promotes risk taking in the organisation

3. Market culture - emphasises and promotes competition and innovation in the organisation

4. Hierarchy culture - emphasise a defined structure and stability in the organisation

Artefacts of organizational culture  obvious elements of an organization's culture

option a is an artefact of market culture

1.Is the demand for Good X Elastic or Inelastic between $9 and $10? Use the above demand schedule to answer this. explain(3 marks)




2.What happens to the Demand Curve of a Good X if the price of Good Y (a

substitute good) increases?Explain why the demand curve for Good X changed?(3 marks)





3.What type of demand would there be for a good that had NO substitutes? explain(2 marks)




4.There is an expectation that the

price of the product will soon

fall, what happens to demand(2 marks)

class 10 icse economics applications- chapter- demand pls help me i need urgent answer i will be very grateful pls help me


Answers

Answer:

1. Demand for good X is Elastic

2.   The demand curve for good X shifts outward or rightward.

If the price of good Y increases, good Y becomes more expensive. Thus, the quantity demand of good y decreases. Consumers shift to the consumption of good X. As a result, there would be an increase in the demand for good X. The demand curve for good X shifts outward or rightward.

3. Demand would be inelastic if there were no substitutes.

If there is an increase in the price of the good, consumers cannot not shift to the consumption of a cheaper substitute. As a result, quantity demand would be less sensitive to changes in price.

4. If there is an expectation of a future reduction in price, there would be a fall in demand now. the demand curve would shift inward or leftward.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

Elasticity of demand for good X = percentage change in quantity demanded / percentage change in price

percentage change in quantity demanded = (150 / 110) - 1 = 0.364 = 36.4%

percentage change in price = (9/10) - 1 = 0.1 = -10%

Elasticity = 36.4 / -10 = -3.64 = 3.64

the coefficient of elasticity is greater than one, so demand is elastic

2. Substitute goods are goods that can be used in place of another good.

If the price of good Y increases, good Y becomes more expensive. Thus, the quantity demand of good y decreases. Consumers shift to the consumption of good X. As a result, there would be an increase in the demand for good X. The demand curve for good X shifts outward or rightward.

3. Demand would be inelastic if there were no substitutes.

If there is an increase in the price of the good, consumers cannot not shift to the consumption of a cheaper substitute. As a result, quantity demand would be less sensitive to changes in price.

4. If there is an expectation of a future reduction in price, there would be a fall in demand now. the demand curve would shift inward or leftward.

A polycentric predisposition means: that Polynesian companies are more effective than companies from other cultures. individuals have a philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates. individuals have a way to look at multiple issues and make the same decision no matter what country they are working in. that people from more than two races can function better in international businesses.

Answers

Answer:  individuals have a philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates.

Explanation:

The cultures and norms of the various countries of earth vary in certain aspects so we cannot expect a formula that works in a country to work in another country. There is a need to tailor what we are offering to the culture of the country we are offering it in for us to have a chance at selling our product.

This is what a polycentric predisposition is and it is very important and useful to Multinational companies that have to sell in various countries. For instance, McDonalds cannot sell beef in India but can sell it in the United States. They tailor made their burgers to reflect the values in both countries.

a.
Obtain the linear trend equation for the following data on new checking accounts at Fair Savings Bank and use it to predict expected new checking accounts for periods 16 through 19. (Round your intermediate calculations and final answers to 2 decimal places.)



Period New Accounts Period New Accounts Period New Accounts
1 200 6 239 11 281
2 217 7 244 12 275
3 211 8 250 13 288
4 224 9 252 14 288
5 235 10 267 15 319


Y = + t
Y16 =
Y17 =
Y18 =
Y19 =


b.
Use trend-adjusted smoothing with α = .2 and β = .1 to smooth the new account data in part a. What is the forecast for period 16? Compute the initial trend estimate (Tt) for Period 5 as follows: (Period 4 data – Period 1 data) / 3. Then compute the initial trend-adjusted forecast (TAFt) for Period 5 as follows: Period 4 data + Initial trend estimate for Period 5. Then compute all remaining values (including the Stvalue for Period 5) using the textbook formulas or Excel template. (Round the "Trend"values (Tt) to 3 decimal places and all other intermediate forecast values (TAFt and St) to 2 decimal places. Round your final answer to 2 decimal places.)



Forecast for period 16

Answers

Answer:

Y = 6.82X + 199.43

Predictions

Y(16) = 308.55

Y(17) = 315.37

Y(18) = 322.19

Y(19) = 329.01

Explanation:

From the data given:

The linear trend equation obtained by fitting the data using technology is :

Y = 6.82X + 199.43

Where, the slope = 6.82

Intercept = 199.43

Making predictions :

Period 16

x = 16

Y = 6.82(16) + 199.43 = 308.55

x = 17

Y = 6.82(17) + 199.43 = 315.37

x = 18

Y = 6.82(18) + 199.43 = 322.19

x = 19

Y = 6.82(19) + 199.43 = 329.01

The purpose of penalty clauses in purchasing agreements is to _________. assure the financial stability of the supplier stock inventory at the supplier require the supplier to comply with mandatory cost reduction efforts avoid supplier delivery problem

Answers

Answer:

avoid supplier delivery problem

Explanation:

Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.

The fundamental principle of supply chain management is the complete collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing producer), a wholesaler, and a retailer who typically sells the products to the customers or consumers.

Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

A penalty clause can be defined as an express provision in a contractual agreement which places an obligation or penalty such as a forfeit or fine, upon the party who has breached a contract by providing compensation to the victim or aggrieved party.

Hence, the purpose of penalty clauses in purchasing agreements is to avoid supplier delivery problem between the producers, wholesaler, retailer and consumers or buyers and sellers.

What "Super Union" had taken on railroad companies and factories to improve the conditions for workers?

( 1 )
Knights of Labor

( 2 )
International Workers of the World (IWW)

( 3 )
American Federation of Labor (AFL)

( 4 )
American Railway Union (ARU)

Answers

Explanation:

4th one is the answer

American Railway Union (ARU)

Annie must pay
v in taxes to the state
government on her investment.
She also must pay
v in taxes to the federal
government
As a result of the money she will lose to taxes, the real
value of Annie's profit is

Answers

Answer:

Annie must pay $200 in taxes to the state government on her investment. She also must pay $1,000 in taxes to the federal government. As a result of the money she will lose to taxes, the real value of Annie’s profit is $2,800.

Explaination:

I completed the assignment on Edge! These are the correct answers.

As a result of the money she will lose to taxes, the real value of Annie’s profit is 2800.

What is a taxes?

Taxes are compulsory payments made by a government institution, if local, regional, or federal, to people or businesses. Tax money is used to finance government programs, as well as public infrastructure and services like highways and schools. Tax imposed by the government on the earnings of employees and indeed the profits of businesses, or a charge included in the price about some goods, services, and interactions.

State government tax will be determined as

=$4,000×5%

=$200

Taxes to the federal government will be determined as

Federal government tax  will be determined as

=$4,000×25%

=$1,000

The real value of Annie’s profit  will be determined as

Profit=$4,000-($200+$1,000)

=$4,000-$1,200

=$2,800

Learn more about taxes, here:

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The question is incomplete, the complete question is:

Annie invested in a set of stocks and made $4,000 in profit. She has learned that she will have to pay taxes on the profit she has made. Here are the tax rates affecting Annie’s investment: State tax: 5% Federal tax: 25% Annie must pay in taxes to the state government on her investment. She also must pay in taxes to the federal government. As a result of the money she will lose to taxes, the real value of Annie’s profit is

alan Associates prepared its financial statement for 2017 based on the information given here. The company had cash worth $1,234, inventory worth $13,480, and accounts receivables worth $7,789. The company's net fixed assets are $42,331, and other assets are $1,822. It had accounts payables of $9,558, notes payables of $2,756, common stock of $22,000, and retained earnings of $14,008. How much long-term debt does the firm have

Answers

Answer:

$18,334

Explanation:

Calculation to determine How much long-term debt does the firm have

Current assets = $1,234 + $7,789 + $13,480

Current assets = $22,503

Total assets = $22,503 + $42,331 + $1,822

Total assets = $66,656

Current liabilities = $9,558 + $2,756

Current liabilities= $12,314

Total stockholders' equity = $22,000 + $14,008 Total stockholders' equity= $36,008

Now let calculate the Long-term debt using this formula

Long-term debt = Total assets - Current liabilities - Total stockholders' equity

Let plug in the formula

Long-term debt = $66,656 - $12,314 - $36,008

Long-term debt = $18,334

Therefore How much long-term debt does the firm have is $18,334

Staind, Inc., has 7.5 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8.75 percent, what is the current bond price?

Answers

Answer:

Explanation:

Assuming the face value of the bond = $1000. Interest = 1000*7.5% = $75

Current Price = Interest * PVAF (10 years, 8.75%) + Maturity Value * PVF (8.75%, 10 Years)

Current Price = $75 * 6.4889 + $1000*0.4322

Current Price = $486.67 + $432.20

Current Price = $918.87

So, the current bond price is $918.87

Spackel Corporation recorded the following events last year: Issuance of shares of the company's own common stock $ 380,000 Purchase of long-term investment $ 40,000 Dividends paid to the company's own shareholders $ 18,000 Cash paid to suppliers for inventory purchases $ 12,000 Repayment of principal on the company's own bonds $ 370,000 Interest paid to lenders $ 6,000 Collection by Spackel of a loan made to another company $ 110,000 Purchase of equipment $ 350,000 On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be: Multiple Choice $(280,000) $(760,000) $(1,286,000) $(390,000)

Answers

Answer:

$(280,000)

Explanation:

The computation of the net cash provided or used by investing activities is given below:

Purchase of long-term investment -$40,000

Collection by Spackel of a loan made to another company $110,000

Purchase of equipment -$350,000

Net cash used by operating activities -$280,000

g If the beginning work in process includes 200 units that are 20% complete with respect to conversion and 30% complete with respect to materials. Ending work in process includes 100 units that are 40% complete with respect to conversion and 50% complete with respect to materials. If 1,000 units were started during the period, what are the equivalent units of productions for the period (using the weighted-average method) for conversion

Answers

Answer:

1,140 units

Explanation:

Note : The question requires us to use the weighted-average method. This method focuses on equivalent units of completed units and units still in process only.

Step 1 : Determine units completed and transferred

Units Completed = Beginning units + Units Started - Ending units

                              = 200 + 1,000 - 100

                              = 1,100 units

Step 2 : Calculate equivalent units of production with respect to conversion costs

Completed and transferred (1,100 x 100%)         1,100

Ending units (100 x 40%)                                         40

Total equivalent units of conversion costs         1,140

thus,

the equivalent units of productions for the period (using the weighted-average method) for conversion is 1,140 units.

A felon planned to break into the rental storage unit next to his that contained valuable electronic equipment. He went to a hardware store to purchase a crowbar. The proprietor sold him the crowbar even though he told her that he needed it to break into someone's storage unit. After the purchase, the felon went to the storage facility with his friend. The felon told the friend that he had lost the key to his storage unit and did not have time to contact the facility's manager, so they needed to break into the unit to get his equipment. Because the felon had a bad back, the friend pried open the door with the crowbar and carried the equipment out to the car. A silent alarm was triggered and the pair were apprehended shortly after leaving the facility. Can the proprietor and the friend be convicted as accomplices to larceny

Answers

Answer:

Yes.

The proprietor and the friend were accessories to the crime.  They could have prevented it, but they did nothing.  The friend even participated actively in the robbery.

Explanation:

In criminal law, an accessory to a crime refers to a person who knowingly and voluntarily participates in the commission of a crime, for example, breaking rental storage. They can be categorized as before the crime (the proprietor who sold the crossbar) or after the commission of the crime (the friend that facilitated the robbery).  Accessories to a crime need not be actually present at the scene of the robbery to be held liable for this crime.

what is photo synthesis?​

Answers

Answer:

photo synthesis is the process in which green plants use water and carbon dioxide to create their food.

What is the difference between a price floor and a price ceiling?
a. A price floor is the minimum price allowed for a good. A price ceiling is the maximum price allowed for a good.
b. A price floor is the maximum price allowed for a good. A price ceiling is the minimum price allowed for a good.
c. A price ceiling below the equilibrium price has no effect.
d. A price floor above the equilibrium price has no effect.

Answers

Hi there, mate!

Answer:

a. A price floor is the minimum price allowed for a good. A price ceiling is the maximum price allowed for a good.

Explanation:

As the name suggests, a price floor is the lowest amount of money the price of a good can be. For example, if you were selling a dress, there is a price floor. There is also a price ceiling. You can not go over the price ceiling if you want to get more customers. So, the answer to the question is option A.

Answer: The correct answer is A

Which of the following is TRUE? " When a market price allocates resources, everyone who is able to pay the price gets the resource. " A command system works well when the lines of authority and responsibility are clear. " When the government decides how to allocate tax dollars among competing uses, resources are allocated by command." " When a manager offers everyone in the company the opportunity to win a prize, resources are allocated by a market price."

Answers

Answer: When a market price allocates resources, everyone who is able to pay the price gets the resource.

Explanation:

The market allocates prices to goods and services based on the scarcity of the said goods and services. This means that regardless of how scarce a good is, you can get it if you are willing to pay the price that it is being offered at.

For instance, if the price of tomatoes suddenly went up from $4 to $12 per pack, it means that tomatoes are now more scarce and not many people can afford it. If you can afford that $12 however, you will be able to get the tomatoes despite how scarce it is.

Christopher is a licensed sales agent sponsored by Coastal Realty in Corpus Christi, Texas. Jose has been a real estate broker in Playa del Carmen, Mexico, for five years. In that time, Mexico has not required any kind of license or registration to engage in brokerage activity. Christopher has clients interested in purchasing property on the Gulf Coast of Mexico. Christopher has referred his clients to Jose. Can Christopher accept compensation from Jose for referring his clients to Jose

Answers

Answer:

Yes.

Explanation:

Christopher can accept referring fee from Jose for clients referred to him but he should disclosed this fee as referring fee since he is a licensed agent. Jose may or may not disclose referral fee paid by him since he is not registered sales agent and Mexico does not require any kind of license for brokerage activity.

What effect would reducing income tax rates have on the interest rates of municipal​ bonds? A. Interest rates would rise because the reduction in income tax rates would make the​ tax-exempt privilege for municipal bonds less valuable and reduce the demand for municipal bonds. B. Interest rates would fall because the reduction in income tax rates would make the​ tax-exempt privilege for municipal bonds less valuable and reduce the demand for municipal bonds. C. Interest rates would fall because Treasury securities are now less valuable and more people will want to hold municipal bonds. D. Interest rates would rise because Treasury securities are now less valuable and more people will want to hold municipal bonds.

Answers

Answer:

A. Interest rates would rise because the reduction in income tax rates would make the​ tax-exempt privilege for municipal bonds less valuable and reduce the demand for municipal bonds.

Explanation:

In the case when the income tax rate is decreased on the municipal bonds so here the interest rate would increase as there is a decrease in the income tax rate due to which there should be the tax-exempt for the municipal bonds also it is less valuable. In addition to this, it also decrease the municipal bond demand

hence, the correct option is A.

Question 8 of 15
What is the value of a yearly compensation package that includes a $42,000
salary, the full cost of a $200-per-month health insurance plan, and the full
cost of a $35-per-month life insurance premium?
A. $42,620
B. $42,235
C. $44,435
D. $44,820

Answers

Answer:$44,820

Explanation:

Other Questions
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