The grocery store uses grid layout type space.
What is grid layout?Grid layout are probably the most common floor plan in retail, where aisles are laid out in a uniform grid. They are most commonly seen in large stores such as supermarkets and DIY stores, as they allow customers to move through a central aisle to easily find the aisles they need.
This floor plan provides great opportunities for retailers to sell products using end caps and feature walls. The layout of the network also takes into account a large number of pedestrians due to the wide corridors. The uniformity of the look of this store gives customers the confidence to explore a wide range of products. However, it can be considered unimaginative.
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A person who cannot get a job despite being willing to work and actively seeking work is considered.
Unemployed people are those who don't have a job but are available for employment and have sought for work in the last four weeks, according to the Bureau of Labor Statistics.
How the Job Market Operates
On a national basis, economic slowdowns are the main factor contributing to unemployment. When the economy weakens, businesses are compelled to reduce payroll expenditures.
The COVID-19 outbreak increased employment rates more than the 2007–2009 Great Recession. In fact, they were more comparable to the unemployment rates seen during the Great Depression during the first several months of the pandemic. 1 The history of recessions demonstrates that rising unemployment rates have always gone hand in hand with them.
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you can buy an item for $130 on an in-store payment plan with the promise to pay $130 in 90 days. suppose you can buy an identical item for $124 cash. if you buy the item for $130, you are in effect paying $6 for the use of $124 for three months. what is the effective annual rate of interest? ignore interest rate compounding.
what is the effective annual rate of interest? ignore interest rate compounding:
I = PRN
I = 3, P =127, N = 3/12
3 = 127 X R X 3/12
12 X 3 = 127 X R X 3
12 = 127 X R
R = 12/127 = 0.094488 = 9.45%
ANSWER: 9.45%
In finance and economics, interest is payment from a borrower or deposit-taking monetary organization to a lender or depositor of an amount above reimbursement of the predominant sum (this is, the amount borrowed), at a selected fee.[1] it's miles wonderful from a rate which the borrower may also pay the lender or a few 1/3 celebration. It is also awesome from dividend that is paid through a organization to its shareholders (owners) from its profit or reserve, however now not at a particular price decided in advance, alternatively on a pro rata foundation as a share in the reward gained by risk taking entrepreneurs when the sales earned exceeds the full costs.
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an asset is projected to generate 5 annual cash flows of $5,000 starting 7 years from today and a final one-time cash flow of $12,000 in 27 years from today. if the appropriate discount rate is 4.7%, how much is this asset worth today? g
If the appropriate discount rate is 4.7%, this asset will be worth $57,519 (rounded based on present value calculation).
What is present value?
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings or debt obligations.
How to calculate the asset worth today?
Price of the asset is the Present Value of its future cash flows.
We need to use 2 formulas to determine the Present Value of cash flows.
1. Present value of ordinary annuity
2. Present value formula
We need to use the Present value of ordinary annuity formula to determine the Present value at time period 5 (we are going to call this as cash flow at year 5) for annual cash flows of $5000 for 5 years. The formula is as follows :
CF5 = PMT * (1-(1+r)^-n)/r
= 5,000 * (1-(1.+0.047)^-5) / 0.047
= 5,000 * (1 - 0.794816) / 0.047
= 5,000 * 0.2052 / 0.047
= 5,000 * 3.365957
= $21,829.787
Where PMT = annual periodic payment = $5,000
n = number of periodic payments = 5 from 5 annual cash flows
r = discount rate = 4.7% = 0.047
Using the Present value formula, we need to discount the cash flow of annuity and the cashflow in year 27 to today
PV = (CF5/(1+r)^5) + (CF27/(1+r)^27)
= ($21,829.787 / 1.046^6) + (5,000/1.046^27)
= (21,829.787 / 1.3097551) + (5,000 / 3.36787126)
= 16,667.0753945 + 1,484.6173188
= $18,151.6927133
The asset worth today is $18,152 (rounded to the nearest dollar)
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when microsoft establishes a distribution center in france, u.s. net capital outflow a. decreases because microsoft makes a foreign direct investment in france. b. increases because microsoft makes a foreign direct investment in france. c. increases because microsoft makes a foreign portfolio investment in france. d. decreases because microsoft makes a foreign portfolio investment in france.
Because Microsoft makes a foreign direct investment in France by opening a distribution center there, net capital outflow from the United States rises. Thus option (B) is correct.
What is the investment?Investment is the ceremonial of money to purchase an asset to attain an increase in value over a time period of time. Investment requires a sacrifice of some present quality, such as time, medium of exchange, or effort. In finance, the purpose of investing is to generate a return from the invested asset.
As an investment, what experts alter is figuring out your goals and risk permissiveness – either on your own or with the help of a financial professional. There is no warranty that you'll make money from your investment funds. Before you begin an investment fund.
Therefore, Thus option (B) is correct.
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If you have to pay your car insurance deductible which is the best place to get the money brainly.
The insurance company was the finest spot to pay your auto insurance deductible.
How can I avoid paying the deductible on my auto insurance?How to Avoid Paying the Deductible for Car Insurance. By asking your mechanic to waive the deductible in exchange for your business, you can avoid paying your auto insurance deductible. Additionally, if the claim is for glass repair, your insurance provider might waive your comprehensive insurance deductible. You cannot pay your deductible over time unless the repair company provides some sort of payment plan. Additionally, insurance providers don't provide payment options for deductibles. It may be worthwhile to lower your deductible if you are having problems making payments. For collision insurance, insurance providers provide a variety of deductibles.
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according to professor porter, a business must differentiate itself from its competitors. one method is to encourage customers to believe that an organization provides higher quality goods or better service, then the organization can charge a premium, or gain market share, or (ideally) both. for example, by placing a swoop icon on a sweatshirt, nike is able to charge a higher price. this methodology is called .
By placing a swoop icon on a sweatshirt, nike is able to charge a higher price,this methodology is called monopolistic competition.
What is monopoly competition?Monopolistic competition occurs when a large number of firms offer competing goods or services that are equivalent but imperfect substitutes.
Restaurant chains such as Burger King and McDonald's are competing for dominance. Both operate fast food restaurants, have similar customer bases, and offer similar products and services. These two companies are in direct competition with each other, trying to differentiate themselves by using brands, charging more, and offering their own food and beverage packages. A company that sells its product exclusively and without any nearby substitutes is a monopoly. An uncontrolled monopoly has the ability to set prices and has market power. Examples include Microsoft and Windows, DeBeers and Diamonds, and local natural gas companies.
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Within firm-ngo disputes, the resolution of the conflict can range between the firm doing nothing at one extreme and the firm doing everything that the ngo has asked at the other extreme. Where the resolution of a particular campaign occurs within this range of outcomes is influenced by.
the resolution of a particular campaign occurs within this range of outcomes is influenced by how much influence the NGO has over the company and how reasonable the NGO's demands are.
A non-governmental organization or non-governmental organization is an organization that is generally formed independently of government.
NGOs can easily adapt to local environmental conditions and thus provide individualized assistance. It also enables very targeted testing of new technologies, for example. Programs can also be easily integrated when it comes to benefiting the community.
Nonprofit organizations, most commonly referred to as Section 501(c)(3) organizations, support a variety of religious, artistic, charitable, educational, and scientific purposes. Non-Governmental Organizations (NGOs), as their name suggests, exist independently of government oversight but may be government-funded.
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b. what do you conclude about the hedge ratio as the option becomes progressively more in the money?
The hedge ratio compares the value of a role covered via the use of a hedge with the size of the complete role itself.
A hedge ratio may also also be a assessment of the cost of futures contracts purchased or sold to the fee of the cash commodity being hedged.
How do you determine the effectiveness of a hedge?Under the change-in-fair-value method, the evaluation of hedge effectiveness is based on a calculation that compares the current price of (1) the cumulative change in anticipated variable future cash flows that are specified as the hedged transactions and (2) the cumulative trade in the fair cost of the by-product
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Customers could be made feel special through our kind words and gestures.
How do you make customer make feel special?Giving attention: Pay attention to and take note of all the minor details when interacting with your consumers, even if they don't seem to be relevant to the current transaction.Make them your priority :Consider whether you're providing customers with the information they need at every opportunity.Be open to criticism: Your best opportunities for providing excellent customer service come from consumer criticism or complaints. Correct your mistakes: You can take action to make things right after you are aware of what you've done incorrectly.Customers who don't feel valued may decide to patronize rival businesses who will cherish their patronage. The importance of customer gratitude cannot be overstated.To learn more about customers , refer:
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when calculating the expected rate of return on a stock portfolio using a weighted average, the weights are based on the: multiple choice number of shares owned of each stock. market price per share of each stock. market value of the investment in each stock. original amount invested in each stock. cost per share of each stock held.
When calculating the expected rate of return on a stock portfolio using a weighted average, the weights are based on the market value of the investment in each stock.
What is Rate of Return (RoR)?
The net gain or loss on an investment over time is the rate of return. It is presented as a percentage of the investment's principal. The percentage change from the start of the term to the end is obtained by calculating the rate of return.
The rate of return (RoR) is a tool for calculating the long-term profit or loss of an investment. The real rate of return calculation takes inflation into account, whereas the simple rate of return calculation does not. The time value of money is taken into account by internal rate of return (IRR).
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olin is a branch manager for a large freight company. he has noticed low morale lately, perhaps because of the cramped quarters, stricter policies, and lack of raises this year. according to herzberg, colin should first concentrate on?
When Olin noticed low morale lately, perhaps because of the cramped quarters, stricter policies and lack of raises this year. According to Herzberg, he should first concentrate on the hygiene factors.
What are Hygiene factors?Essentially, an hygiene factors ask the question "why are my people dissatisfied?". The hygiene factors are best associated with job dissatisfaction, such as salary, working conditions, interpersonal relationships, and company policy.
All these factors affect the job context in which people work. Example of a good hygiene factors are when a company offers paid time off, sick days and health insurance to part-time workers. Generally, a good hygiene factors lead to low employee turnover and absenteeism.
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your company has two cloud projects and you want them to share policies. what is the least error-prone way to set this up?
Place both projects in a folder and define a policy for the folder. If you want to create a folder. A folder must have an organisation node.
The Organisation node is optional but required if you create folders. A cloud billing account is linked to a project and pays for it. A Cloud Billing account is associated with a Payments profile. Billing account administrators can enable invoice export, view costs/expenses, set budgets and notifications, and link/link projects. A user-managed service account can be attached to a Compute Engine instance to provide credentials to applications running on the instance. A user with write permission can modify the contents of the file, including adding, modifying, or deleting the contents of the file.
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chen is looking for information for a speech about starting your own business. what is the best example of a periodical chen might use as research? the book think big, act small sba.gov, the small business administration website a transcript from a recent corporate corruption trial entrepreneur magazine
Answer: sba.gov, the Small Business Administration website
Explanation:
The best example of a periodical Chen might use as research is the act small sba.gov. Thus option B is correct.
What is Research?Research refers to deep investigations of the data and information available to provide credentials with facts and figures to provide results that will utilize for the new research.
In the given case, it is explained that Chen is looking for information for a speech about starting his own business. The information which is considered reliable is taken from a portal that is authentic is government portal.
A government portal provides accurate facts and information and helps an individual to understand trends in entrepreneurship.
Therefore, option B is appropriate.
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Wilkinson sword exchanged some of its knives for advertising used to promote its razor blades. This is an example of?.
A system in which goods and services are exchanged in place of money or the actual goods or services being exchanged is known as a barter system.
What is barter system ?A different form of commerce called barter involves exchanging goods and services directly for one another rather than via the use of money. It is a traditional system of trading. People traded goods and services for other goods and services in return.A traditional way of transaction is a barter system. Without the use of a medium of exchange, products or services are exchanged directly for one another. outline of a heart.Without the use of money, items are exchanged under the barter system.A different form of commerce called barter involves exchanging goods and services directly for one another rather than via the use of money. For instance, a farmer might trade a shoemaker a pair of shoes for a bushel of wheat.To Learn more About barter system refer to:
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the average cost of capital is the appropriate rate to use when evaluating new investments, even though the new investments may be in a higher risk class. group of answer choices true false
"The average cost of capital is the appropriate rate to use when evaluating new investments, even though the new investments may be in a higher risk class."This statement is True.
Investment is the fidelity of plutocrats to buy of an asset to attain an increase in value over a period of time. Investment requires the immolation of some present asset, similar as time, plutocrat, or trouble. In finance, the purpose of investing is to induce a return from the invested asset. Investment description is an asset acquired or invested in to make wealth and save plutocrats from hard-earned income or appreciation. Investment meaning is primarily to gain an fresh source of income or gain profit from the investment over a specific period oftime.There are numerous types of investments to choose from. maybe the most common are stocks, bonds, real estate, and ETFs collective finances.
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when auditing financial statements and finding indications of a possible misappropriation of assets, independent auditors should:
The auditor is responsible for planning and performing the audit to obtain reasonable assurance that the financial statements are free of material misstatement due to error or fraud.
By giving the customer false credit for the return. The auditor may make recommendations regarding the form or content of, or prepare in whole or in part, the financial statements based on information received from management during the course of the audit. An entity's external independent auditor reviews the entity's financial statements and prepares a report containing an opinion as to whether the financial statements are presented fairly and in all material respect he complies with GAAP.
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solutions inc. negotiates the sale of materials between lumberyards and commercial construction companies, receiving a 15 percent commission on all transactions. solutions inc. is considered a
With a 15% commission on every deal, Solutions Inc. negotiates the material sales between lumberyards and commercial construction firms. As a broker, solutions inc. is regarded.
What does a broker look like?The main duty of a broker is to connect buyers and sellers; as a result, the broker acts as a neutral intermediary between a buyer and a seller. A real estate or stock broker who helps in the sale of a property would be an example. Market data and market research can be provided by brokers.
What three categories of brokers exist?Web-based brokers. a brand-new type of online customer engagement in the digital space.
Cheap brokers. A stockbroker who executes buy and sell orders with a lower commission is known as a discount broker.
comprehensive brokers.
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through negotiated rulemaking, federal agencies have begun encouraging businesses and public interest groups to become directly involved in
Federal agencies have started enticing companies and public interest organizations to participate directly in... crafting the regulations that affect them through the process of negotiated rulemaking.
Using a neutral facilitator and a balanced negotiation group made up of representatives of all interests that the rule would effect, including the rulemaking agency itself, negotiated rulemaking is a consensus-based procedure through which an agency develops a proposed rule. Before an agency proposes a rule in its final form, this procedure offers everyone with a stake in it the ability to try and come to an understanding on the key elements of the rule.
The committee's objective is to reach agreement, which is generally interpreted to indicate that all parties involved agree with the outcome, unless everyone on the committee initially agrees to a different interpretation. Each party pledges to bargain honestly.
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at her death venus owned real property worth $345,000 with venus' spouse in joint tenancy with the right of survivorship. venus contributed $69,000 to the original cost of the property and the spouse contributed the remaining $138,000. what amount, if any, is included in venus's gross estate?
$238050 included in venus's gross estate each tenant has an equal claim to the funds in the account and is granted survivor rights in the event that one or more account holders pass away.
It is clear from the question that
Upon the passing of a member, the remaining member receives the entire value of that member's part of the property. A legal ownership structure comprising two or more persons for an account or other asset is known as a joint tenant with right of survivorship.
Each tenant has an equal claim to the funds in the account and is granted survivor rights in the event that the other account holder(s) passes away.
Venus owned property worth $345,000 in joint tenancy with right of survivorship with her spouse at the time of her death. She paid $69,000 of the property's original purchase price, and her spouse paid the remaining $138,000 of it.
The following sum will be counted toward venus gross estate:
= $345,000 x 69%
= $345,000 × 0.69
= $238050
It should be emphasised that because she and her spouse are joint tenants on the property, only 69% of the debt will be included.
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Which term is taken to explain a collection of web services that facilitate interaction of web users with sites to create user-generated content and encourage behaviours such as community or social network participation
A Web 2.0 website enables users to communicate and work together as co-creators of user-generated content in a virtual community through social media discussion.
What is Web 2.0 and its example?Web 2.0 also gave rise to social media websites, web apps, and self-publishing platforms like WordPress. Web 2.0 refers to global websites that emphasize user-generated content, usability, and interoperability for end users.Web 2.0 is also known as the participative social web. In general, the following are the key characteristics of Web 2.0:Web-based apps are accessible from any location.Simple applications address specific issues.The value is in the content, not the program used to present it.Data is easily exchanged.Bottom-up, not top-down, distribution is used. Web 2.0 refers to websites and programs that leverage user-generated content for their audience of users.Greater user interaction and collaboration, more widespread network connectivity, and improved communication channels are characteristics of Web 2.0.To learn more about Web 2.0 refer
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Which mean absolute deviation would have a greater variability or spread? 4. 2 or 8. 5?.
With a mean absolute deviation of 8.5, there would be more variability or spread.
Which absolute mean deviation has a higher degree of variability?A point's "average" "positive distance" from the mean is known as the mean absolute deviation. Data variability increases as MAD increases, according to certain studies (the data is more spread out). The MAD is a handy tool for evaluating whether the mean of a set is a reliable predictor of the values contained therein.
A measure of spread, is mean absolute deviation?The average absolute deviation (MAD) between each data value and the mean of a data set is a statistical metric. The MAD statistic, which is a parameter, quantifies the spread or variation in your data in a manner similar to the standard deviation.
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from the point of view of a financial analyst, when evaluating companies that use different inventory cost assumptions, in a period of:
In decreasing prices, FIFO inventory is preferred to LIFO inventory.
What is FIFO?First In, First Out, sometimes known as FIFO, is a strategy of managing assets and valuing them that prioritizes the sale, use, or disposal of assets that were produced or acquired first.For taxation purposes, FIFO presumes that the cost of items sold on the income statement includes the assets with the oldest expenses (COGS). The assets in the inventory that are still available are compared to those that were just bought or made.According to the accounting principle known as first in, first out (FIFO), assets that are bought or acquired first are also the first to be sold.According to FIFO, the inventory still on hand is made up of products that were bought last.LIFO is an accounting technique that differs from FIFO in that assets that were acquired or purchased most recently are sold first.In an inflationary market, the FIFO technique frequently assigns lower, older expenses to the cost of items sold, resulting in a higher net income than if LIFO were utilized.To learn more about FIFO, refer to
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a(n) orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) orientation strives to develop shared standards.
While a values orientation aims to establish common norms, a compliance orientation establishes order by mandating that employees commit to and identify with a specific mandated behaviour.
Describe compliance orientation.While compliance orientation aims to stop misconduct, the "values" approach's goal is to promote professional conduct. It is true that perspective matters. The "Compliance" strategy necessitates a careful examination of LER statutes, guiding ideals, and standards of conduct.
Value orientation is defined as the acceptance of moral standards by an individual or a social group. synonyms for ethics include morality and value systems. the chartism kind.
This idea is used to describe preferences for specific outcomes for oneself and others. Different social value orientations, such as altruism, equality, cooperation, individualism, competition, aggression, and others, could be differentiated.
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this is a bond provision that specifies the annual repayment schedule that will be used to service the bond and pay off the debt.
Treasury inflation-indexed bond is the type of bond provision that specifies the annual payment schedule, which is being used to service the bond and pay off the debt.
What is the inflation-indexed bond?Bonds that have their principal daily indexed for inflation or deflation are known as inflation-indexed bonds. They are therefore intended to reduce a bond's susceptibility to inflation risk. The Massachusetts Bay Company issued the first recorded inflation-indexed bond in 1780.
Bonds with an impact of inflation refer to an inflation-measuring market index, such as the CPI. The original value of the bond is altered as a result of the index's inflationary ups and downs, altering the yield you receive from each coupon payment.
An inflation-indexed bond guards against inflationary pressure for the duration of the bond both for investors and issuers.
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the annual report for fabeck finishing corporation contained the following information: (in millions) 2021 2020 accounts receivable $ 659 $ 721 allowance for doubtful accounts 25 25 accounts receivable, net $ 634 $ 696 assume that accounts receivable write-offs amounted to $12 during 2021 and $2 during 2020, and that fabeck finishing did not record any recoveries. required: determine the bad debt expense for 2021 based on the above facts. (enter your answer in millions.)
Based on the above facts, the bad debt expense for 2021 for Fabeck Finishing Corporation is $12.
What is the bad debt expense?The bad debt expense represents some account receivables recognized as uncollectible.
Under the allowance method, the bad debt expense is the difference between the debit and credit entries in the Allowance for Uncollectible Accounts.
Under the direct write-off method, the bad debt expense is the actual bad debt incurred when some specific receivables are deemed uncollectible and therefore written off.
Allowance for Doubtful Accounts2020:
Account Titles Debit Credit
Accounts receivable $2
Bad Debts Expense $27
Balance $25
2021:
Balance $25
Accounts receivable $12
Bad Debts Expense $12
Balance $25
Thus, Fabeck Finishing Corporation will recognize a bad debt expense of $12 for 2021.
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How much money, in dollars, did steve made $50 raking leaves and $75 mowing lawns. He gave 60% of his earnings to his mother. How much did steve give to his mother?.
Steve gave 75$ to his mom out of the 125$ he earned by raking leaves and mowing lawns. It is 60% of his income.
What is money?A system of value called money makes it easier for people to exchange products in an economy. Using money allows buyers and sellers to pay less in transaction fees than bartering would. Commodities served as the initial forms of money. They were sought after as a medium of exchange because of their physical qualities.
Why is money such a big deal?Money allows us to buy food, housing, and healthcare, which satisfies our basic needs. It is imperative that we meet these needs; otherwise, both our individual wellbeing and the wellbeing of the community as a whole suffer greatly.
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a marketer of breakfast cereals might send researchers to preselected households at 6 a.m. to watch families go about their morning routines. the client could also assign a researcher to accompany family members to the grocery store to record their behavior under actual shopping conditions. this type of research method is considered as:
The correct answer is observation.
The first type is Naturalistic observation
When conducting naturalistic observation, one observes a phenomenon in its natural setting. The researcher does not engage in any direct interaction with the individuals while making the observations in order to be as unobtrusive as feasible.
The second type is Participant observation
With participant observation, scientists take an active role in the research process. A researcher may also conduct interviews, take notes, review documents, and take pictures in addition to watching activities.
The third type is Structured observation
When doing structured observation, researchers use a lab or a synthetic environment rather than observing in the wild. A structured observation aims to watch a predetermined, constrained range of behaviors. Although less natural, this approach allows for fewer factors to be in play.
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which of the following stocks is under priced if the risk-free rate of return is 3.7 percent and the market risk-premium is 8.8 percent? stock beta forecast return a 0.64 9.47% b 0.97 12.03% c 1.22 14.44% d 1.47 15.80% e 1.78 18.37%
If the risk-free rate of return is 3.7 percent and the market risk-premium is 8.8 percent, the Stock beta forecast return of E(r)A is under priced.
As Solved,
E(r)A = 0.037 + (0.64 ∗ 0.088) = 0.0933
E(r)B = 0.037 + (0.97 ∗ 0.088) = 0.1224
E(r)C = 0.037 + (1.22 ∗ 0.088) = 0.1444
E(r)D = 0.037 + (1.44 ∗ 0.088) = 0.1637
E(r)E = 0.037 + (1.78 ∗ 0.088) = 0.1936
The risk-free rate of return, is the rate of return of a hypothetical investment with scheduled payments over a fixed period of time that is assumed to meet all payment obligations.
How do you determine risk-free rate?
To calculate the risk-free rate, subtract the inflation rate from the yield of the treasury bond matching your investment duration.
What is an example of a risk-free rate?
United States treasuries are seen as a good example of a risk-free investment since the government cannot default on its debt. As such, the interest rate on a three month United states treasury bill is often used as a stand-in for the short-term risk-free rate.
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an individual buys a bond for $1,000 and sells it one year later for $1,070. what is the annual interest rate return that this individual has received on this bond? group of answer choices 7.0 percent 70.0 percent 0.5 percent 4.0 percent
The annual interest rate return that this individual has received on this bond 7.0 percent.
The term APR can be nominal APR or APR and is the interest rate for one year and not just the monthly/interest rate that applies to loans, mortgages, credit cards, etc. This is a financing fee. Expressed as an annual rate.
Annual Interest Rate (APR) means the annual interest accrued on the amount billed to the borrower or paid to the investor. APR is expressed as a percentage representing the actual annual cost of financing or income generated from an investment over the term of the loan.
APR or Annual Rate is the interest rate expressed as an annual rate. A loan's APR may include fees such as B. Fees. APR is important because it lets you know how much you will pay to borrow.
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what is the yield to maturity (ytm) for a $1,000 par value bond selling for $1,100 that matures in 5 years and pays a 10% coupon one time a year?
The yield to maturity for a $1,000 par value bond selling for $1,100 is 7.5%.
What is yield to maturity?The yield to maturity (YTM), book yield, or redemption yield of a bond or other fixed-interest security, such as gilts, is an estimation of the total rate of return anticipated to be earned by an investor who purchases a bond at a given market price, holds it until maturity, and receives all interest payments and the capital redemption on schedule. Internal rate of return (IRR, overall interest rate) is the discount rate at which the present value of all future cash flows from the bond (coupons and principal) equals the bond's current price. Although market custom is more frequently followed, the YTM is frequently expressed in terms of annual percentage rate (A.P.R.).
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