What is moral hazard? it refers to the actions people take before they enter into a transaction so as to mislead the other party to the transaction. it refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off. it refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. it refers to the private, self-interested actions that people pursue, which when taken collectively leads to a loss in economic surplus.

Calculate the required rate of return for an asset that has a beta of 1.73, given a risk-free rate of 5.3% and a market return of 9.9%. b. if investors have become more risk-averse due to recent geopolitical events, and the market return rises to 12.7%, what is the required rate of return for the same asset?

The following accounts appeared in recent financial statements of delta air lines. identify each account as either a balance sheet account or an income statement account. for each balance sheet account, identify it as an asset, a liability, or stockholders' equity. for each income statement account, identify it as a revenue or an expense. item financial statement type of account accounts payable balance sheet advanced payments for equipment balance sheet air traffic liability balance sheet aircraft fuel (expense) income statement aircraft maintenance (expense) income statement aircraft rent (expense) income statement cargo revenue income statement cash balance sheet contract carrier arrangements (expense) income statement flight equipment balance sheet frequent flyer (obligations) balance sheet fuel inventory balance sheet landing fees (expense) income statement parts and supplies inventories balance sheet passenger commissions (expense) income statement passenger revenue income statement prepaid expenses income statement taxes payable balance sheet

Abusiness cycle reflects in economic activity, particularly real gdp. the stages of a business cycle