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The Returns on the Stock of DEF and GHI Companies

question 48

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The returns on the stock of DEF and GHI companies over a 4 year period are shown below:  Year  DEF  GHI 8%11%12%9%5%9%6%13%\begin{array} { | l | l | l | } \hline \text { Year } & \text { DEF } & \text { GHI } \\\hline & 8 \% & 11 \% \\\hline & 12 \% & 9 \% \\\hline & - 5 \% & - 9 \% \\\hline & 6 \% & 13 \% \\\hline\end{array} From this limited data you should conclude that returns on

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Sales Tax

A tax imposed by governments on the sale of goods and services, typically calculated as a percentage of the purchase price.

Price

The amount of money required to purchase a good or service, often determined by the interaction of supply and demand.

Quantity Tax

A tax that is levied on a per unit basis, meaning a specified amount is charged for each unit of a good or service sold.

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