During periods of inflation, which of the following is true? Group of answer choices: FIFO will generate the highest net income LIFO will generate the lowest net income The weighted average net income will fall somewhere between the results of FIFO and LIFO. All of the above None of the above
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During periods of inflation, which of the following is true?
Group of answer choices:
FIFO will generate the highest net income
LIFO will generate the lowest net income
The weighted average net income will fall somewhere between the results of FIFO and LIFO.
All of the above
None of the above
Step by step
Solved in 3 steps
- In an inflationary period, what is the difference between (a) inflated dollars and “then-current” future dollars, and (b) “then-current” future dollars and constant-value future dollars?(a) Compare the performance of these size premiums with the global market premium over this period. Do they outperform or underperform the market? (b) Examine the time-series return pattern of these size premiums. Are there any specific periods in which the size premiums outperform or underperform? Based on the time-series return pattern, do you think market condition (e.g. boom or recession) plays a role in explaining the return variation for the size premiums? (b) identify two potential theories/reasons why small firms may outperform large firms. instruction use the table given the table shows time-series average returns and standard deviations to the size premiums acrossthe five regions/countriesIf there is a change in expected inflation and the natural unemployment rate, how does it affect the short-run and long-run Phillips curves? Explain the effects of these changes for these two time periods separately, using also graphical analysis
- What is the (exact) nominal return on an investment that earns a real return of 14.7% while inflation is 7.4%? Enter your response, in percent (%), correct to TWO decimal places.So if the Return = (Total Dividend + change in market price ) / purchase Price, then why is the annual return not calculated that way??Based on the following information, what is the standard deviation of returns? State of Economy Probability of Stateof Economy Rate of Return ifState Occurs Recession .28 − .096 Normal .41 .111 Boom .31 .221
- Hyperinflation is indicated by all of the following, except: a. The general population prefers to keep its wealthy in nonmonetary assets. b. Interest rates, wages and prices are linked to a price index. c. The cumulative inflation rate over three years is approaching or exceeds 100%. d. All of the choices indicate hyperinflation.Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) State of Economy Probability ofState of Economy Security Returnif State Occurs Recession 0.40 −4.50 % Normal 0.50 13.00 Boom 0.10 25.00in this answer the genral inflation rate of 2% that is given is not taken into account. why?
- Based on the efficient markets hypothesis, the current price reflects to Select one:the discounted net present valuefuture interest paymentsNone of the answers are correctall available and relevant informationthe cost price.The Markets average historical excess return is closet to (%) (2 decimal places):Which type of average rate of return best describes the average annual rate of return earned over the period (the arithmetic or geometric)? Why?