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sashaice
9 days ago
11

Over a six-month period in 2007, the price of corn increased by almost 70% as a result of increased demand for ethanol biofuel.

Business
1 answer:
arsen [3.2K]9 days ago
6 0

Response:

a. Due to the rise in corn prices, the supply of corn would grow. Simultaneously, the acreage allocated for corn farming would expand.

b. The primary factor behind the change in corn production acreage is:

A. The increased price indicates to suppliers that corn is becoming more valuable.

Clarification:

As corn is essential for producing ethanol biofuel, the demand and supply for corn rise to keep pace with the climbing prices. Suppliers, for their part, respond by increasing production through the use of a larger amount of land dedicated to corn cultivation. This depicts the usual interaction of market forces that influence market equilibrium.

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The profit amounts to $5.91. Based on the information presented: The number of shares sold is 300, the selling price is $30.19, and a commission fee of 0.5% equates to 0.005. The purchase price is $29.87. Let's calculate it: Total selling price = 300 × $30.19 = $9057. Therefore, proceeds from the sale are: Total selling price - Commission = $9057 - (0.005 × $9057) = $9,011.715. Furthermore, the purchasing cost for the shares is 300 × $29.87 = $8,961. The total expense incurred for purchase, including the commission, is $8,961 + (0.005 × $8,961) = $8,961 + $44.805 = $9,005.805. Consequently, profit is considered to be: Proceeds from sale - Total purchasing cost = $9,011.715 - $9,005.805 = $5.91.
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The point of indifference is 50 minutes.
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a company that gradually phases out product lines or liquidates its inventory is pursuing a ________ strategy.
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25 days ago
The Optima Mutual Fund has an expected return of 20%, and a volatility of 20%. Optima claims that no other portfolio offers a hi
Mariulka [3472]

Answer:

(a) 0.75

(b) 0.2

(c) 0.6

Explanation:

(a) For the Sharpe ratio calculation -

Given:

Expected return = 20%,

Risk-free rate = 5%,

Volatility = 20%

Sharpe ratio = (Mean portfolio return - Risk-free return) ÷ Standard deviation of portfolio

Sharpe Ratio = (20% - 5%) ÷ 20%

= 0.75

(b) Given:

Standard deviation = 40%,

Portfolio return = 11%,

The risk-free return remains at 5%

Sharpe Ratio of eBay = (11% - 5%) ÷ 40%

Sharpe Ratio of eBay = 0.15

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= Sharpe ratio of eBay ÷ Sharpe ratio of Optima fund

= 0.15 ÷ 0.75

= 0.2

(c) The correlation of the Sub-Optima fund with the Optima fund is 80%,

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Correlation of the Sub-Optima fund with the Optima fund:

= Sharpe ratio of Sub-Optima fund ÷ Sharpe ratio of Optima fund

0.80 = Sharpe ratio of Sub-Optima fund ÷ 0.75

Sharpe ratio of the Sub-Optima fund = 0.80 × 0.75

= 0.6

6 0
1 month ago
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