Answer:
The total annual return can be calculated by adding up the returns from each of the three stocks, weighted by the amount invested in each stock:
Total Annual Return = (1/2 * $1,000,000) + (1/3 * $3,000,000) + (1/4 * $4,000,000)
= $500,000 + $1,000,000 + $1,000,000
= $2,500,000
Therefore, the total annual return for the three stocks is $2,500,000.
In an insurance market, buyers are the ones who are more likely to respond to market information in a way that causes adverse selection. Adverse selection occurs when buyers with higher risk are more likely to purchase insurance than those with lower risk. This leads to an imbalance in the pool of insured individuals, with a higher proportion of high-risk individuals. This, in turn, results in higher premiums to compensate for the higher risk, which further discourages low-risk individuals from purchasing insurance. This cycle can lead to the collapse of the insurance market.
When hiring the most qualified candidates from college graduates, employers generally look at three important factors:
a) Educational background and achievements: Employers look for candidates who have completed their degree from a reputable institution and have demonstrated academic excellence, such as high grades, honors, or awards.
b) Relevant work experience: Employers prefer candidates who have relevant work experience, such as internships, co-op programs, or part-time jobs, in their field of interest. This demonstrates that the candidate has applied their skills in a practical setting and has a good understanding of the industry.
c) Soft skills and personal traits: Employers also value soft skills and personal traits, such as communication skills, teamwork, leadership, problem-solving, and adaptability. These skills are essential for success in any job and are often assessed through interviews, reference checks, and personality tests.
Step-by-step explanation: