Q: Which of the following is NOT an economic principle that provides a foundation for the study of…
A: Study of finance requires all principles except conservative of value,whic is a different principle…
Q: are
A: Conservatism is a social and political philosophy which promotes traditional social institutions.The…
Q: How investors handle risk is an important topic that usually only economists observe.
A: Basically, risk the executives happens when an investor or fund manager investigates and endeavors…
Q: Mr. John Dela Cruz, wanted to start investing in the stock market, which of the following financial…
A: In a market, there are different industries and different types of markets for different types of…
Q: Question 4 What does it mean to be a ‘rational investor’ and how do fintech solutions encourage us…
A: "Rational" means a hypothetical person who reasonably computes the expenses and advantages of each…
Q: What role does executive compensation play in risk-taking and accountability? Why do some people…
A: Executive compensation plays the important role of attracting talents who shoulder most of the…
Q: Explain with an example of the Inclusion of Risk in Investment Evaluation?
A: Risk can be included in the evaluation of an investment by measuring the degree of risk using the…
Q: 4- Demand, Competitions and distribution chain are factors relating to: a. Macroeconomic…
A: Macroeconomics can be defined as the field of study in economics that relates to the overall…
Q: When interest rates decrease, how might businesses andconsumers change their economic behavior?
A: The interest rate is the rate charged by the lender on the asset lend by them. The asset lend can be…
Q: At what point in one’s life is it safest to try a risky investment? Closer to or further from…
A: Its safest to try risky investment when you are further from retirement.
Q: When frequency, asset specificity and uncertainty rise, what happens to the cost of using the…
A: The transaction costs involves in the exchanges between two economic agents in an economy. The…
Q: uppose you, owner and CEO of a corporation, are considering a $25 million project that constructs a…
A: u" = upmove factor = Price in upmove/Current price = $29m / $22m = 1.318 ~ "d" = downmove factor =…
Q: “Fat finger” trades are sometimes blamed as the cause of “flash crashes” in financial markets. What…
A: What is a Flash Crash? A flash crash can be defined as an occasion in electronic protections…
Q: 1. What is the efficient market theory? 2. What is "Alpha"? 3. Describe the basics of "financial…
A: As you have asked multiple questions, only the first one will be answered. 1. The efficient market…
Q: Why should we invest or not invest in McDonald’s stock and Microsoft
A: Investment: It refers to the amount of money that is being used by the people to make more money.…
Q: List three different ways that a risk-averse person can reduce financial risk.
A: Financial Risk would result in the risk which would be borne by the investor which results in the…
Q: How can the Philippine Stock Exchange entice an average Filipino citizen to invest in securities?…
A: Savings and investments are important in the economy. For the economy to function smoothly, there is…
Q: Based on this video: https://youtu.be/Q-zp5Mb7FV0 Is this video related to the concept of…
A: From the video, we can say that the topic is related to the concept of capital markets which will be…
Q: Bob bought a bond last year for $10,000 that promises to pay him $800 per year. This year investors…
A:
Q: Q.1. Discuss the methodology of econometric research with the help of any economic theory or example…
A: Econometrics: Econometrics is the use of measurable strategies to monetary information to give…
Q: Is selling bonds on the capital market indirect or direct financing? Is taking out a loan a…
A: Answer - Thank you for submitting the questions.But, we are authorized to solve only 3 sub parts…
Q: How can imperfect information distort markets (i.e. make them less efficient)?
A: complete information about operations in the market is a key element that makes any market…
Q: during the 2007-2009 financial crisis, the US government decided that Lehman Brothers was not too…
A: Answer: True Explanation: During the 2007-2009 financial crisis, the US government decided that…
Q: When company executives buy and sell stock basedon private information that they obtain as part…
A: a. The bonds and shares of a company will be purchased on the basis of the available information…
Q: Young people with little wealth should not invest money in risky assets such as the stock market,…
A: The capital market applies to financial markets that operate for the issuance, acquisition and sale…
Q: What are some of the weaknesses behind risk-based capital standards? Answer around 500 words.
A: Capital regulatory requirements are one of the ways to provide protection against bankruptcies. The…
Q: The demanders of funds participate in the financial market to earn profit. * True or False??
A: Individuals and businesses who save money and make financial investments are the suppliers of funds…
Q: The concept of market efficiency applies only in the financial market. True or False?
A: Market efficiency is the economic concept to describe the functioning of the market and its ability…
Q: When considering where to go to lunch, you think back to your past experiences at different…
A: Business is the activities if selling and buying the goods and services in order to make profit . to…
Q: explain the efficient-market hypothesis. what are the 3 forms of efficient market hypothesis?…
A: Efficient Market Hypothesis:- This hypothesis (EMH) is also known as market efficiency, contends…
Q: 3. James borrowed Zae's truck to drive up to Two Sustah's for a fish plate. When he pulled up in…
A: Risk is basically defined as the probability that the actual profits from a result or investment…
Q: Why emerging market economies is important in financial markets?
A: A financial market is considered as the market in which different people trade in financial…
Q: What are the empirical evidences in favor of and against the efficient market hypothesis?
A: The EMH often known as the efficient market theory, asserts that stock prices reflect all available…
Q: Disscuss the significance of the efficient market hypothesis for the financial managers
A: Market efficiency is the degree to which prices in the market show all available relevant data and…
Q: Explain how accounting is used to track and monitor economic events that impact capital markets
A: Financial accounts play a vital role that allows businesses to keep a track of all the financial…
Q: Investors have different preferences with regards to the risk: they can be risk averse, risk neutral…
A: The risk averse people are those person who always prefers lower risk among the different levels of…
Q: In many situations, financial innovations are viewed as innovative variations on existing…
A: the term financial innovation means new ways or innovative financial methodologies. This innovative…
Q: Which of the following would count as valid evidence against the efficient markets hypothesis? (a)…
A: Efficient market hypothesis involves fluctuations in prices of stock market companies.
Q: Give an example of a risk-free interest rate?
A: The rate of return on an investment that is theoretically devoid of any risk is known as the…
Q: How much liability does stockholder assume?
A: Shareholder: Any person, company, or organization holding stock in a specific company.
Q: Define the term financial market and give examples to explain your understanding
A: Countries financial system facilitates the movements of funds from savers to borrowers . And…
Q: How do economist define a "bubble"? Provide an example of an asset market that you think could be…
A: A bubble is a situation or phenomena when there are expectations of a huge rise in prices…
Hello. Since your question has multiple parts, we will solve the first question for you. If you want the remaining sub-parts to be solved, then please resubmit the whole question and specify those sub-parts you want us to solve.
Step by step
Solved in 2 steps
- ◄ Search 12:47 PM Sun Nov 12 ← Note Nov 12, 2023 Uptown's price strategy The Nash equilibrium occurs when High Low LED RareAir's price strategy High $12 $15 The more favorable outcome would be for $12 Tt ✪ $6 B Low $6 D $8. $15 $8 S O both firms have an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the dominant strategy of cell A. 92% neither firm has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the dominant strategy of cell D. O one firm consistently has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the high-price strategy of cell B. O one firm consistently has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the high-price strategy of cell C. O the firms to collude and use the high-price strategy but this strategy requires cooperation. O one firm to take the lead and let the…II.2 Companies A and B can compete on advertising or R&D. The profits (in millions of $ million) of the two firms are given in the table below assumig that they play a one-shot simultancous mov game (the profit or firm A is listed first in every cell of the matrix, followed by the profit of firm B): Advertising R&D 50, 25 10, 70 20, 40 60, 35 1. Find the mixed strategy equilibrium. A\B Advertising R&D 2. What are the expected profits for both firms in this equilibrium?Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: True or False: Only Little Kona has a dominant strategy in this game. True or False Which of the following outcomes represent a Nash equilibrium in this case? Check all that apply. Big Brew maintains a high price and Little Kona enters. a.Big Brew maintains a low price and Little Kona enters. b.Big Brew maintains a high price and Little Kona does not enter. c.Big Brew maintains a low price and Little Kona does not enter. Big Brew threatens Little Kona by saying, “If you enter, we're going to set a low price, so you had better stay out.” True or False: Little Kona should not believe the threat. True or False If the two firms could collude and agree on how to split the total profits, what outcome would they…
- 2. Provide the normal-form expression to the extensive-form game below, and find all pure-strategy Nash equilibria there. Find the subgame-perfect Nash equilibrium then. A B X E Y B A B F t G F G BF B D A 0 3. Find the subgame perfect Nash equilibria (may or may not be unique) in the game below. A B 100 30 F 60 9 5 B 3 5 12 10 60 10 80 10 180 60 200 40Is this strategy a sub-game perfect Nash Equilibrium? Player 2: a c e Player 1: A DE C 2 True False A d B e a 2 1 2 1 A D E חח 0 0 1 F -1 1000Give typing answer with explanation and conclusion Suppose two firms produce identical good. The inverse demand curve for the good is: P = 240-Q, where Q is the total quantity produced by the two firms. Each firm has a constant marginal cost 20 of producing the good and fixed cost = 100. Find the Cournot Nash equilibrium of this game. What quantity will each firm produce? what will be the market price? What would be the profits of each firm?
- Solve for the Nash equilibrium (or equilibria) in each of the following games. (a) The following two-by-two game is a little harder to solve since firm 2’spreferred strategy depends of what firm 1 does. But firm 1 has a dominantstrategy so this game has one Nash equilibrium. Firm 2 Launch Don’tFirm 1 Launch 60, -10 100, 0 Don’t 80, 30 120, 0 What is the Nash equilibrium of this simultaneous-move game? (b) What would the outcome of this game be if instead firm 1 moved first and then, after seeing what firm 1 chose, firm 2 chose it strategy? In this case firm 1 doesn’t necessarily need to choose a best response, but firm 2 must choose a best response since it moves second.#3. Characterize the unique subgame-perfect equilibrium in the following game. Can you find any Nash equilibrium which is not subgame perfect? Explain. D R D (1,1,1)) R D N-1 N-1' N-1' D **** N-1 R D R (2,2,..., 2)Three retail chains are each deciding whether to locate a store in town A or town B. The profit or payoff that a chain receives depends on the town selected and the number of other chains that put stores in that town; see accompanying table. (given) a. Find a symmetric mixed-strategy Nash equilibrium in which chainsrandomize.b. Find all mixed-strategy Nash equilibria in which one of the chains putsa store in town A for sure.c. Find all mixed-strategy Nash equilibria in which one of the chains putsa store in town B for sure.
- 1. Prove that every trembling-hand perfect equilibrium (for the agent normal form) is sequential. Show by example that the converse is false. The remaining problems in this chapter concern game-theoretic variations on the classic models of oligopoly. They are primarily about those models and so relate more to material in other chapters, but they could not have been posed until we had covered Nash equilibria and sub game perfection. 2. Prove that in the Bertrand game, if prices must be charged in integer multiples of a penny, then there is always at least one Nash equilibrium in which players do not use weakly dominated strategies.Consider the payoff matrix of Hulu and Netflix. Why don't both firms just raise prices? NETFLIX HULU 15, 15 8, 20 20, 8 10, 10 O It is in each firm's profitable interest to lower prices, no matter what the other competitor does. O Raising prices is illegal in this case. O Firms are concerned about a third competitor entering at higher prices. O Higher prices will increase the number of customers beyond what the firms can handle.Consider the attached game depicted in Normal Form. Find one Nash equilibrium and verify that it is a Nash equilibrium. Note: 1. Remember to express the Nash equilibrium in the form of a strategy profile. 2. Use the definition of Nash equilibrium to verify that the strategy profile you find is really a Nash equilibrium.