Rita, the sales manager of a large multinational company, relies on her experience and instinct rather than quantifiable data to predict the future trends in the demand for their product. She says, "I think we should increase the inventory of our product by 20 percent. I feel there is going to be a huge spike in the next quarter." This scenario exemplifies the human compromise known as ________.
A. stereotyping
B. subjective rationality
C. bounded rationality
D. simplicity
Answer: B
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Assume that your cousin holds just one stock, Eastman Chemical Bonding (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain the following returns data for Wilder's Creations and Buildings (WCB). Both companies have had less variability than most other stocks over the past 5 years. Measured by the standard deviation of returns, by how much would your cousin's risk have been reduced if he had held a portfolio consisting of 60% in ECB and the remainder in WCB? (Hint: Use the sample standard deviation formula.)
Year ECB WCB 2011 40.00% 40.00% 2012 ?10.00% 15.00% 2013 35.00% ?5.00% 2014 ?5.00% ?10.00% 2015 15.00% 35.00% Average return = 15.00% 15.00% Standard deviation = 22.64% 22.64% A. 3.29% B. 3.46% C. 3.65% D. 3.84% E. 4.03%
Why are horizontal structures called the "model for the knowledge age"?
What will be an ideal response?
Each member country to the TRIPS agreement must include in its domestic laws broad intellectual property rights and effective remedies for violations.
Answer the following statement true (T) or false (F)
Purple Corporation has accumulated E & P of $100,000 on January 1, 2017 . In 2017, Purple has current E & P of $130,000 (before any distribution). On December 31, 2017, the corporation distributes $250,000 to its sole shareholder, Cindy (an individual). Purple Corporation's E & P as of January 1, 2018 is:
a. $0. b. ($20,000). c. $100,000. d. $130,000. e. None of the above.