Draw a hypothetical demand and supply curve for S &P 500 stocks and explain briefly the effects the effect of unexpected inflation caused by a sudden rise in energy prices.
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- Consider demand for Apple stock. How is it affected by the following factors (relative to other assets)(Holding all other factors constant) a. Wealth falls b. Expected value appreciates c. Liquidity for bond increases d. Bond market: price volatily falls Please provide explanation showing the shifts in the supply and demand curve for each of these factors.what is the effects of this to firm value?decrease or increase? An expected increase in inflation causes generally higher interest rates, and hence, the discount rate increases.The following table indicates the unit prices (in Rands) and quantities of three goods held in the national warehouse of a DIY (“do it yourself”) store for the years 2020 and 2021. Item 2020 2021 Unit Price (p0) Quantity (q0)) Unit Price (p1) Quantity (q1) Mineral spirits R23.70 30 R27.70 45 10mm spanner R49.00 60 R65.00 50 25mm brush R58.00 30 R63.00 40 Q.8.1 Using 2020 as the base year, compute the price relatives in 2021 for the 10mm spanner and the 25mm brush. Interpret your answers. (8) Q.8.2 Again, using 2020 as the base year, compute the Paasche price index for all of the items for 2021. Interpret your answer.
- Explain the impact of interest rate reduction in the housing sector. Draw diagrams to show the transition from a short run to a long run in a perfectly competitive market.Identify and briefly analyze the major economic factors that move asset prices over time.Looking at the stock information in figure 2, what would you conclude about the South African MobilePhone sector between 2008 and 2011? A. The market was very depressed between the period 2008-2011 as cellular stocks remained below2008 prices through the period to 2011.B. The market was solid and prices were rising between 2008 and 2011C. Prices fell steadily but investors remained hopeful that the market was going to rebound in the nearto medium termD. The market crashed and plateaued between 2008 and 2011
- There is much speculation on how the current foreclosure market will evolve due to a variety of factors such as The expiration of COVID related forbearance and mortgage protection programs. • Discuss how these factors will change the foreclosure market in the coming year. Following essay formatAssume the role of CEO of a company. In anticipation of the upcoming quarterly disclosure of profits, you prepare your Board of Directors for the pressure that cost-push inflation is having on profits. There will be some erosion of profits. All America Grocery Inc.We serve communities in the middle of the income market, providing low prices for all basic grocery needs. Our modest-income consumers expect good deals on good quality foods. The Covid-19 pandemic has put upward pressure on the price of everything we sell. Cost-push inflation from multiple sources is impacting our operating cost and our cost of goods. We are both fortunate and unfortunate that the price elasticity of demand for food is .20. Is the demand curve for your product relatively elastic, inelastic, or unitary elastic? Demonstrate this for your company's product by how much the quantity demanded will change if you pass on the 10% increase in cost. In other words, prepare a forecast showing by what percentage the…Effects on shares and financial markets is a macroeconomic issue that was brought about by the impact of COVID-19. What government policy should be implemented to fix this issue?
- 13. Stock quotes - Looking up a stock price The price of a stock is largely influenced by supply and demand. When more people want to buy a stock, the price goes _______ . By contrast, when more people want to sell a stock, the price goes_________ . You can look up the current price for a stock, and other important numerical measures, by searching for the company (or the stock’s trading symbol) on popular financial or investing websites. Many newspapers also publish abbreviated information in the financial section for many common stocks, bonds, and mutual funds. The following table represents the format of typical price quotes for various stocks that would appear in the financial section of a newspaper: YTD 52 WEEKS YLD VOL NET % CHG HI LO STOCK (SYM) DIV % PE 100S LAST CNG +9.25 56.31 39.04 Global Communications GC 0.36 0.72 23.17 58093 50.06 +1.82 +18.87 48.57 36.55 GermCorp GERM 0.14 0.30 20.48 8134 47.05…Using the various forms of Efficient Market Hypothesis framework, please explain the recent 2020 increases in S&P500 index despite increasing risks from Covid-19 and declining profitsWhich of the following apply to stocks? Select all that apply. Earn gains from dividends Earn gains from interest Prices are determined by present value Prices are determined by supply and demand Have primary and secondary markets Have only primary markets
