In "thinking like an economist," the section "the role of economic theory" states that many economists believe that useful insights into our behavior can be gained by assuming that we act as if governed by the rules of rational decision-making.
It is possible to define rational decision-making as a decision-making process that incorporates reasoning at every stage. It is founded on the use of impartial knowledge. The first step in making a reasonable decision is to identify the issue that needs to be resolved, followed by the collection of all relevant data.
The next step is to examine every outcome that might result from each potential solution. The decision-making process that follows comprises weighing all viable options and selecting the best one based on reasoning.
Rational decision-making examples include:
● A student chooses what to study in his post-secondary education.
● A commercial choice regarding what to buy for the company.
To know more about decision-making refer to:
https://brainly.com/question/1249089
#SPJ4
As a modern business manager, you no longer need to be concerned with how fast the computers your company buys are because ________?
As a modern business manager, you no longer need to be concerned with how fast the computers your company buys are because Moore's Law.
As a contemporary business manager, you now not must fret with how briskly the computers your company buys are because Moore's Law has proven to be true over the last several decades and also the cost of computing speed has fallen dramatically.
Moore's Law refers to Gordon Moore's perception that the amount of transistors on a microchip doubles every two years, though the price of computers is halved. Moore's Law states that the quantity of transistors on a microchip doubles about every two years, though the value of computers is halved. In 1965, Gordon E. Moore, the co-founder of Intel, made this observation that became called Moore's Law.
Learn more about Moore's Law.
https://brainly.com/question/1751276
#SPJ4
what may happen to eli and his father? check all that apply.they will pay for eli’s and dave’s care.they will not have to pay any costs because the accident was not dave’s fault.eli will be covered by dave’s family car insurance policy.they w
Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event that the covered auto vehicle—be it a car, bike, or any other auto vehicle—is involved in an accident or is stolen.
Vehicle insurance often covers both the liability risk and the property risk (theft or damage to the vehicle) or (legal claims arising from an accident).
The family insurance policy, which is an auto policy that includes one or more of the following coverages: liability, medical expenditure, physical damage, and uninsured motorist, is another type of vehicle insurance policy.
To know more about insurance refer:
https://brainly.com/question/989296
#SPJ4
Disclaimer- The complete question is
What may happen to Eli and his father? Check all that apply.
They will pay for Eli’s and Dave’s care.
They will not have to pay any costs because the accident was not Dave’s fault.
Eli will be covered by Dave’s family car insurance policy.
They will be protected by the other driver’s insurance.
Bills will be waived because it was weather-related damage.
cards give consumers a unique card number that is valid for one transaction only.]
Payment card with disposable numbers give consumers a unique card number that is valid for one transaction only.
Virtual payment cards, often known as disposable credit cards, use transient numbers that you use once and discard. These are accessible through specific banking institutions and applications.
Your payment card information will be concealed in the case of a data breach. During these transactions, your actual credit card information is kept private, adding another layer of security. This is comparable to the virtual debit card services that we previously discussed. When you use the temporary number, which is connected to your credit card, money is deducted from your account.
To learn more about payment card click here:
https://brainly.com/question/1446478
#SPJ4
When eaton worked with the university of notre dame on its new engineering building to improve its energy efficiency and earn leed credits, both actors were working together for the first time. Therefore, the university’s buying situation can be classified as a ________.
When eaton worked with the University of Notre Dame. The university’s buying situation can be classified as a derived demand.
It could be wise to consider Notre Dame. They require fantastic advantages. There are several work prospects for those without experience. esteem the affection and help they provide to the personnel. The majority of job seekers favourable.
For their interview at the University of Notre Dame, candidates rate the interview's difficulty on a scale of 1 to 5, with 1 being the easiest and 5 being the most challenging. The University of Notre Dame is the top Catholic research university in the country, and it offers education with a distinctive voice that is bluntly intellectually demanding, boldly moral in direction, and firmly embracing a service ethos.
The University of Notre Dame is NOT a league institution despite having excellent acceptance and graduation rates, top rankings, and a large number of well-known alumni. Eight private colleges and universities in the US's northeast make up the league schools. Particularly in the departments of engineering and science, Notre Dame's academics are exceedingly challenging.
Learn more about Notre Dame, here
https://brainly.com/question/1163543
#SPJ4
A requirement that buyers of one service must also purchase another service from the same seller is called _____.
A requirement that buyers of one service must also purchase another service from the same seller is called a tying contract.
Price communicates information and offers incentives to shoppers and sellers. high fees are signals to producers to produce extra and buyers to shop for much less. Low prices are signals for manufacturers to produce much less and for shoppers to shop for greater. the acquisition of the assets of rival companies that lessens competition. which provides a sign of growth or lower quantity supplied or quantity demanded.
Costs are impartial because they choose neither the manufacturer nor the patron. since fees are the end result of opposition among customers and sellers they constitute compromises that each aspect can stay with. provide an explanation for what is meant by way of the time period marketplace equilibrium. A fee signal is facts conveyed to purchasers and producers via the fees supplied or asked for, and the quantity asked or supplied of a product or service.
Learn more about A tying contract here:-https://brainly.com/question/9982025
#SPJ4
In order to create a good first impression with a customer, salespeople should _____
In order to create a first good impression with a customer, salespeople should have impression management skills.
The process by which people attempt to influence how others perceive them is known as impression management. This can be intentional or unintentional, and it involves emphasizing positive aspects while downplaying negative ones. It is also known as "self-presentation." The processes by which people control how others perceive them are referred to as impression management (also known as self-presentation).
When you first meet, it only takes a quick glance, maybe three seconds, for someone to judge you. The other person forms an opinion about you based on your appearance, body language, demeanor, mannerisms, and clothing during this brief period.
Making a good first impression will assist you in developing customer relationships and selling more. From the moment you approach them, your behavior, attitude, and personal presentation will influence their purchasing decision.
Learn to know more about impression skills at
https://brainly.com/question/18367363
#SPJ4
Some savings and investment choices have the potential for higher earnings. however, these may also be difficult to convert to cash when you need the funds. this problem refers to?
Some protection and buy choices have the possibility for increased earnings. however, these may even be challenging to convert to cash when you need the accounts. This problem refers to Liquidity risk.
What does "liquidity risk" mean?The danger of suffering losses as a result of not being able to make payments on time when they are due or not being able to do so at a reasonable cost is known as liquidity risk. A financial risk known as liquidity risk states that for a specific amount of time, a particular financial asset, security, or commodity may not be exchanged in the market rapidly enough to avoid affecting the market price. When a group, organization, or economic organization is unable to pay its short-term debt obligations, liquidity risk occurs.There may not be enough bidders or an inefficient market, which would prevent the investor or company from selling the asset for cash without forfeiting money and income.Therefore the correct answer is E. Liquidity risk
The complete question is:
Some savings and investment choices have the potential for higher earnings. However, these may
also be difficult to convert to cash when you need the funds. This problem refers to:
A. Inflation risk
B. Interest rate risk
C. Income risk
D. Personal risk
E. Liquidity risk
To learn more about Liquidity risk, refer to:
https://brainly.com/question/921670
#SPJ4
owner investments cause a(n) (increase/decrease) in equity and are entered directly in owner's (capital/withdrawals/revenue).\
Owner investments cause a increase in equity and are entered directly in owner's capital. Your assets are the sum of your cash, the products you have acquired, and any money owed to you by your customers. Liabilities are the entire sum of money owed to creditors.
The whole value of your assets less your total obligations equals your owner's equity, net worth, or capital. The capital or owner's equity or net worth is the fund invested by the owner in the firm or the net amount claimable by the owner from the business. Your assets are the sum of your cash.
To learn more about capital, click here.
https://brainly.com/question/7672602
#SPJ4
denzel is one of 50,000 people defrauded of $40 in an advertising scam. denzel's best course of action to recover his money is to
Denzel is one of 50,000 people defrauded of $40 in an advertising scam. Denzel's best course of action to recover his money is to become part of a class action lawsuit, which might include plaintiffs who are unaware of the lawsuit or are even unaware they were harmed.
A class action lawsuit is a form of lawsuit in which a person or group represents a larger group. For example, individuals like Denzel who were victims of a advertising scam may collect together and file a class suit in court.
This best courts of action would be representing not only themselves but also any other persons who may have been victims of the particular fraud, regardless of whether they were aware of it or not, and help them recover their money.
To learn more about class action lawsuit: brainly.com/question/19337342
#SPJ4
Muffy's muffins had net income of $2,570. the firm retains 55 percent of net income. during the year, the company sold $505 in common stock. what was the cash flow to shareholders?
When Muffy's muffins had net income of $2,570, where the firm retains 55 percent of net income, and during the year, the company sold $505 in common stock, the common cash flow to the shareholders will be $1661.5. Therefore, the option C holds true.
What is the significance of cash flow?Cash flow can be referred to or considered as the total amount of cash and cash equivalents received or made by a firm during a given financial period.
On net income of $2,570, the dividend payment to the shareholders will be $1156.5, and the common stock worth $505 was sold, thereby generating a cash flow of $1,156 + $505 = $1,661.5.
Therefore, the option C holds true and states regarding the significance of cash flow.
Learn more about cash flow here:
https://brainly.com/question/28238360
#SPJ4
The missing options to the incomplete question have been added below for better reference.
A. 1156.5
B. 651.5
C. 1661.5
D. 2570
Effective influence over what other industry was key to helping rockefeller greatly expand his oil empire?
Effective influence over Railroads industry was key to helping rockefeller greatly expand his oil empire.
History of railroadsRailroad building in the United States greatly surged starting in the early 1870s. Approximately 45,000 miles of track had been built before 1871. A further 170,000 miles were added to the expanding railroad network of the country between 1871 and 1900. The construction of the transcontinental railroads is responsible for a large portion of the expansion.
The Pacific Railway Act, passed by Congress in 1862, gave the go-ahead for the construction of a transcontinental railroad. On May 10, 1869, the first railroad of this type was finished. Four more transcontinental railroads connected the Pacific Coast with the eastern states by 1900.
Learn more about railroads
https://brainly.com/question/24418014
#SPJ4
The 47.50 put on a stock is trading at 1.32 bid and 1.37 ask. to buy one option contract, you must pay ________ at the time the contract is purchased.
The 47.50 put on a stock is trading at 1.32 bid and 1.37 ask. to buy one option contract, you must pay $137.00 at the time the contract is purchased.
What is stock trading?In order to profit from daily price fluctuations, stock trading entails purchasing and selling shares of various businesses. Traders actively monitor the short-term price swings of these equities in an effort to purchase low and sell high.
Stock traders differ from regular stock market investors in that they take a short-term perspective rather than a long-term one.
Trading individual stocks include the risk of significant losses in addition to the potential for rapid returns for those who time the market right. The fortunes of a single company can rise faster than the market as a whole, but they can also tumble just as easily.
To know more about stock trading visit:- https://brainly.com/question/16002897
#SPJ4
Who had the most say in the outcome of the healthcare reform (the president and congress, interest groups, or the people)?
President Obama signed the low cost Care Act into regulation, putting in vicinity complete reforms that improve access to less costly healthcare coverage for each person and shield purchasers from abusive insurance business enterprise practices.
At the start, he desired to enhance first-class and lower the charges of fitness care with out a mandate that required all and sundry to have medical insurance and with out a healthcare coverage penalty.
The affected person safety and low-cost Care Act, referred to as the cheap Care Act or for short, is the comprehensive fitness care reform regulation enacted in March 2010. The regulation has three primary desires: Make low priced healthcare coverage available to greater humans.
Learn more about healthcare here
https://brainly.com/question/25912875
#SPJ4
When a licensed salesperson is soliciting for potential borrowers or investors, what must be included in the advertisement?
When a licensed salesperson is soliciting for potential borrowers or investors, the 8-digit number of the employing broker must be included.
What's the position of a investors?
An investor puts capital to apply for long-term gain, while a dealer seeks to generate quick-term profits with the aid of shopping for and promoting securities over and over once more. Investors commonly generate returns by deploying capital as both fairness or debt investments.
What do investors get in go back?
Angel investors usually need from 20 to 25 percentage return on the cash they spend money on your enterprise. Task capitalists may additionally take even greater; if the product continues to be in improvement, for example, an investor may additionally need 40 percent of the commercial enterprise to compensate for the high danger it's far taking.
What are rich investors called?
Angel investors are also known as informal investors, angel funders, non-public buyers, seed investors or enterprise angels. These are people, normally prosperous, who inject capital for startups in trade for ownership fairness or convertible debt.
learn more about Investors here:- https://brainly.com/question/25300925
#SPJ4
unlike data, information consists of facts that have been analyzed by the process component. unlike data, information can be collected in aggregated and disaggregated forms. unlike data, information is considered the input to an information system. unlike data, information by itself is difficult to use for making decisions.
Information can be gathered in aggregated and disaggregated formats in the context of the main parts of an information system.
What distinguishes information that is disaggregated from that that is aggregated?When you mix data from several sources and compile it, you have aggregated information. Disaggregated data is data that has been divided up into its component elements. In order to provide a more comprehensive picture of a situation, aggregated information is frequently utilized in business intelligence, marketing analytics, and customer relationship management. Disaggregated data is increasingly frequently employed in research and development because it enables more detailed examination of the constituent elements of the whole. The value of aggregated data is lower than that of disaggregated data. When you require a solution to a particular query, disaggregated data is crucial, whereas aggregates are not.
To learn more about Information system visit,
https://brainly.com/question/14688347
#SPJ4
Price is ________ related to demand for most products. inversely directly disproportionately proportionately
Price is inversely linked to the demand for most products.
What is meant by demand economics?Demand is an economic idea that relates to a consumer's wish to purchase goods and services and readiness to pay a specific price for them. An expansion in the price of a good or service tends to reduce the quantity demanded.
What is demand and supply?The term supply guides to how much of a certain product, item, commodity, or service suppliers are inclined to make available at a particular price. Demand guides to how much of that product, item, commodity, or service customers are willing and able to buy at a particular price.
To learn more about Demand visit the link
https://brainly.com/question/13320101
#SPJ4
The major activity in strategic planning is the analyses of a business __________.
Analyses of a business strategy is the major activity in strategic planning.
Strategic planning is the first most thing done in the organisation after discussion of goal that is to be achieved in the organisation within a definite span of time.
This phase covers the finding of various alternatives present to achieve a goal and choosing the best one after evaluating various out of the present analyses that fits the best in the welfare of the business.
Strategic planning is the best as it evolves from time to time and depends on the policies and procedure activity of the organisation so that it can evolve with the changes.
To learn more about strategic planning here,
https://brainly.com/question/28332092
#SPJ4
If a seller knows that the price elasticity of demand for her product is 2.4, what will happen to her total revenue if the price decreases?
A seller's total revenue will increase if the price of her product falls if she is aware that the price elasticity of demand for it is 2.4.
What is price elasticity in demand?The relationship between the percentage change in a product's quantity demanded and the percentage change in price is known as price elasticity of demand. It helps economists comprehend how supply and demand shift in response to changes in a product's price.Let's take the scenario where the cost of a candy decreases from Rs. 10 to Rs. 5 and the demand grows from Rs. 10 to Rs. 15 for the candy. Here, 50% divided by 50% equals 1, meaning that the percentage change in demand is equal to the percentage change in price.A demand that is elastic occasions a significant shift in quantity demanded as a consequence of a price adjustment.To learn more about price elasticity of demand, refer to:
https://brainly.com/question/5078326
#SPJ4
Would a decrease in the price of a complementary good cause its complement’s equilibrium price to increase or decrease? what about the equilibrium quantity?.
Due to the increase in demand of commodity Y, there will be excess demand. Therefore, the supplier will be motivated to increase the price of commodity Y. The equilibrium price and quantity would tend to increase.
A rise in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. An increase in demand and a decrease in supply will cause a rise in equilibrium price, but the effect on equilibrium quantity can't be determined.
Goods are complementary if a price decrease in one good causes the demand for the opposite to extend. This can be because the 2 goods are typically consumed during a bundle. During this case, the availability of 1 good is increasing which implies its price will decrease.
An increase within the price of a complementary product will cause a fall within the quantity demanded of that product (shift along the demand curve) and a fall in demand for the complements (shift of the demand curve to the left) whose prices haven't changed.
When two goods are complements in consumption, then a rise within the price of 1 of the products will equilibrium decrease the Demand (shift left) for the opposite good and therefore the reverse for a decrease within the price of the primary good. This happens because the 2 goods are consumed together.
learn more about equilibrium: https://brainly.com/question/517289
#SPJ4
Which country would be considered a part of a global fund but not an international fund?
Securities from all across the world, including your own nation, are included in global funds. Imagine a globe that shows every single nation. Investors who want to diversify against country-specific risk without ignoring their own country typically choose global funds.
Securities from all nations aside from the investor's own—are included in international funds. These funds offer the investor diversification outside of domestic investments.
A global fund, as opposed to an international fund, allows you some domestic exposure. If you already have securities investments in your nation. An international fund may invest in industrialized countries' dependable markets or it may do so in less developed and riskier emerging markets.
To learn more about international fund here
https://brainly.com/question/13084807
#SPJ4
has the beneficiary ever been part of any organization, association, fund, foundation, party, society, club, or group anywhere in the world?
If you have ever stated that you are a US citizen for the purposes of entering the United States at the Canadian or Mexican border. If you have ever registered to vote in any government election in the United States.
What is election ?A populace selects a person or people to hold public office through a formal group decision-making process called an election.
Since the 17th century, elections have been the primary means by which modern representative democracies have been governed. Elections may be held to fill positions in the legislature, occasionally in the executive and judicial branches, as well as in regional and municipal government. This procedure is also utilized by numerous other private and commercial organizations, including clubs, nonprofit organizations, and companies.
The practice in the democratic archetype, ancient Athens, where elections were regarded as an oligarchic institution and the majority of political offices were filled using sortition, also known as allotment, by lot, is in contrast to the use of elections as a tool for choosing representatives in modern representative democracies.
To learn more about election from the given link:
https://brainly.com/question/1415519
#SPJ4
when samantha, manager at abc international, seeks and receives information from both web and industry journals, she is acting as a
when samantha, manager at abc international, seeks and receives information from both web and industry journals, she is acting as a disseminator.
Disseminator role
Disseminator is one of the ten administrative jobs that organizational researcher Henry Mintzberg identified after studying CEOs, middle managers, and supervisors in the course of observational research. Due to its focus on analyzing specifics, facts, and data, it is one of three informational managerial responsibilities, along with monitor and spokesperson. The interpersonal management role and the decisional managerial role, which are concerned with the manager's professional relationships .
Procedure for making and implementing choices, are the other two umbrella groups.
To know more Disseminator role, visit : https://brainly.com/question/14276804
#SPJ4
Telore's yogurt container is narrower at the top than at the bottom. its competitors' yogurt containers have a broader top and narrower bottom. this is an example of using _____ in marketing stimuli.
Telore's yogurt container is narrower at the top than at the bottom. its competitors' yogurt containers have a broader top and narrower bottom. this is an example of using Novelty in marketing stimuli.
What is marketing?
The process of developing, communicating, delivering, and trading offerings that are valuable to customers, clients, partners, and society at large collectively is known as marketing. Any interaction a business has with a client directly qualifies as marketing. For instance, an airline's client satisfaction, brand image, and reputation all depend on the quality of its service.
Therefore,
Telore's yogurt container is narrower at the top than at the bottom. its competitors' yogurt containers have a broader top and narrower bottom. this is an example of using Novelty in marketing stimuli.
To learn more about marketing from the given link:
https://brainly.com/question/25492268
#SPJ4
The ________ is computed by multiplying each decision outcome under each state of nature by the probability of its occurrence.
Answer:
expected value
Explanation:
By having employers withhold federal income tax from employees' pay and submitting the payments to the government, the system is adhering to which of the criteria for a good tax system?
By holding employers withhold federal revenue tax from employees' pay and raising the payments to the government, the system is sticking to the Convenience of the standards for a good tax system.
Which of the following measures are often used to evaluate a good tax system?A good tax system should complete five basic requirements: fairness, adequacy, clarity, transparency, and administrative ease. Although beliefs about what makes a good tax system will vary, there is agreement that these five basic requirements should be maximized to the greatest capacity possible.
An income tax is a forthright tax that a government levies on the earnings of its citizens.
To learn more about a good tax system visit the link
https://brainly.com/question/24173975
#SPJ4
name a method of promoting safety by determining which specific element of a job led to a past accident
A technique of operation review is to identify the exact task or aspect of a job that contributed to a previous accident.
Thus Correct phrase is a technique of operation.
What is a technique of operations review?According to the Technique of Operations Review (TOR) System, management and supervision flaws are the primary contributors to workplace accidents and illnesses. Most accidents can be avoided by fixing management flaws.
A hazard analysis methodology called the "technique of operation review" (TOR) enables employees and managers to do the analysis. It makes use of a straightforward worksheet where team members can select yes or no from a series of options. line employees were involved in the analysis. List five methods for preventing hazards that are broadly applicable.
For more information about the Technique of Operations refer to the link:
https://brainly.com/question/19793544
#SPJ4
what is the price of an investment that pays you $1000 per month with the first payment in 1 month and the last payment in 6 months if the expected return for the investment is 2.0% per month?( round the value to 0th decimal to get a whole number )
The price of an investment that pays you $1000 per month is 14,410.
Periodic Payment per month = 1000
Expected Return = 2% per month End of month payments
Time Period (N) = 6 months
Price = Periodic Payment per month x 1 (1-(1+Expected Return)-M) /Expected Return)
Price = 1000 x [(1-(1.02)-6)]
Price = 14,410.38 or 14,410 (Rounded off)
What does an expected return serve?To ensure that your investments are producing a profit, utilize an expected return. The amount of money you intend to make over the long term by investing in various assets must be clear in your mind. This can be accomplished by investing in bonds or stocks that have a steady return (usually greater than inflation).
By stating this expectation in advance, you may lower the risk and avoid letting your emotions affect your financial planning. Additionally, knowing the results you're aiming for will help your investment decisions quickly match those objectives.
To learn more about expected return serve, visit:
https://brainly.com/question/17152687
#SPJ4
Canada is considering imposing a tax on imports of chinese solar panels. this action would be best described as a:____.
a. quota.
b. subsidy.
c.tariff.
d. voluntary export restraint.
A tariff is an import tax imposed on a specific good. Therefore, taxing Chinese solar panels is the same as imposing a tariff on them.
Following a preliminary examination that revealed Chinese manufacturers have been receiving improper government subsidies, the U.S. Commerce Department stated on Tuesday that it will apply a 2.90 percent to 4.73 percent tax on solar panels made in China. American manufacturers were being strangled by Chinese imports because they were unable to profitably compete with the artificially cheap pricing. As a result, the United States placed taxes on solar panels made in China that may be as high as 250%. The excess solar energy produced by your rooftop solar panels is fed back into the electrical grid when you use less energy in your home than it produces. You will be paid a feed-in tariff, or FIT, for this energy that is not consumed. Because the administration thought China was selling solar panels that had been excessively subsidized and subsequently sold at a large discount from fair market value, those "anti-dumping taxes" were put in place.
Know more about tariffs:
https://brainly.com/question/22685610
#SPJ4
the average daily balance of jack’s new credit card account is . the finance charge that jack can expect on his first credit card statement is .
The average daily balance of Jack's new credit card account is $391.29 and the finance charge that Jack can expect on his first credit card statement is around to $141.
What is the average daily balance?Average daily balance is an accounting method that is used calculates interest charges by considering the balance invested at the end of each day, month or year.
Data and Calculations:
Period Days Daily Balance Product/Sum
Day 1 to day 9 9 $150.00 $1,350.00 ($150 x 9)
Day 10 to day 13 4 $212.48 $849.92 ($212.48 x 4)
Day 14 to day 18 5 $243.17 $1,215.85 ($243.17 x 5)
Day 19 to day 26 8 $623.42 $4,987.36 ($623.42 x 8)
day 27 to day 30 4 $833.89 $3,335.56 ($833.89 x 4)
Total 30 $11,738.69
Average daily balance = $391.29 ($11,738.69/30)
Finance charge would be = charge = $140.86 ($391.29 x 1.2% x 30) or ($11,738.69 x 1.2%)
Thus, , the average daily balance of Jack's new credit card account is $391.29 with a finance charge of about $141.
Learn more about average daily balance here:-
https://brainly.com/question/14378783
#SPJ4
Asset+a+has+an+expected+return+of+20%+and+a+standard+deviation+of+25%.+the+risk+free+rate+is+10%.+what+is+the+reward-to-variability+ratio?
The reward-to- variability ratio (Sharpe ratio) is 0.40 .
Expected return20
Standard deviation:25%
Risk-Free Rate (Rf):10%
Ratio of Reward to Variability (A) =
Solution:
By compensating for the risk involved, the Sharpe Ratio calculates the expected rate of return for each portfolio. Reward-to-Variability Ratio is another name for the Sharpe ratio. Since it compares the projected return on an investment with the risk involved (standard deviation).The formula to calculate it is as follows:
Reward-to-Variability Ratio/Sharpe Ratio = (EA - Rf)/ A
Reward-to-Variability Ratio = (20-10)/25
Ratio of Reward to Variability = 10/25
Ratio of Reward to Variability = 0.40
As a result, Asset A has a 0.40 reward-to-variability ratio.
Complete Question is-
Asset A has an expected return of 20% and a standard deviation of 25%. The risk free rate is 10%. What is the reward-to- variability ratio (Sharpe ratio)?
O 40
O .50
O .75
O.80
To learn more about Reward-to-Variability ratio visit:https://brainly.com/question/13961244
#SPJ4