Other things held constant, if the expected inflation rate decreases and investors also become more risk averse, the security market line would be affected as follows:

answer

a) the y-axis intercept would decline, and the slope would increase.

b) the x-axis intercept would decline, and the slope would increase.

c) the y-axis intercept would increase, and the slope would decline.

d) the sml would be affected only if betas changed.

e) both the y-axis intercept and the slope would increase, leading to higher required returns.

if in the opinion of a given investor a stock's expected return exceeds its required return, this suggests that the investor thinks

a) the stock is experiencing supernormal growth.

b) the stock should be sold.

c) the stock is a good buy.

d) management is probably not trying to maximize the price per share.

e) dividends are not likely to be declared.

While studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. you can't spare the time to pick up the pizza and must have it delivered. "pick-up-sticks" offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for $15 plus 5% sales tax and a $1.50 delivery charge (no sales tax on delivery charge). "fred's" offers the round, deep-dish sasquatch, which is 20 inches in diameter. it is 1-3/4 inches thick, includes two toppings, and costs $17.25 plus 5% sales tax and free delivery. 1. what is the problem in this situation? state it in an explicit and precise manner. 2. systematically apply the seven principles of engineering economy (pp. 3-6) to the problem you have defined in part (a). 3. assuming that your common unit of measure is dollars (i.e., cost), what is the better value for getting a pizza based on the criterion of minimizing cost per unit of volume? 4. what other criteria might be used to select which pizza to purchase?

Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost

Telecom co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. to induce customers, telecom co. provides a free phone. telecom co. normally sells the phone on a stand-alone basis for $200. telecom co. also charges the customer a one-time activation fee of $35.which of the following is true? a) there are two distinct performance obligations: the voice service and the data service b) the free phone constitutes as a marketing expense c) the activation fee is a separate performance obligationd) there are two distinct performance obligations: the wireless services and the phone