a stock has an expected return of 6.5 percent, the risk-free rate is 1.1 percent, and the market risk premium is 5 percent. what is the stock's beta? a) 1.08 b) .98 c) 1.12 d) .96 e) 1.06

The statement of owner's equity for Pirate Landing for the month of October 2020 is as follows:

Pirate Pete, Capital, October 1 $56,000.00

Add: Owner investments $1,500.00

Less: Net loss October 2020 $7,800.00

Less: Owner withdrawals $100.00

Ending balance of Pirate Pete, Capital $49,600.00

The statement of owner's equity shows the changes in the owner's equity during a period of time. In this case, we start with the beginning balance of Pirate Pete, Capital on October 1st of $56,000. Then, we add the owner's investment of $1,500.

Next, we deduct the net loss for the month of October 2020 of $7,800 and the owner's withdrawals of $100. Finally, we arrive at the ending balance of Pirate Pete, Capital of $49,600. This statement helps the owner and investors understand how much the company is worth and how it has changed over time.

For more questions like Investment click the link below:

https://brainly.com/question/15105766

#SPJ11

T-bills, or Treasury bills, are financial instruments initially sold by the federal government to raise funds.

The correct answer is option B: the federal government. T-bills are short-term debt securities issued by the U.S. Department of the Treasury to finance the federal government's borrowing needs. They are considered to be one of the safest investments because they are backed by the U.S. government's creditworthiness. T-bills are typically sold at a discount to their face value and do not pay periodic interest like other types of bonds. Instead, investors earn a return by buying T-bills at a discount and receiving the full face value when the T-bills mature. T-bills are widely used by investors and institutions as a low-risk investment and a tool for short-term cash management.

To know more about Treasury bills click here:

brainly.com/question/29633937

#SPJ11

3 types of defects found in products liability actions: manufacturing defects, design defects, warning defects. Manufacturing defects require proof that defect caused injury, design defects require proof of safer alternative design, and warning defects require proof of inadequate warning.

Manufacturing defects are flaws in the way a product is made or assembled that make it different from other products of the same line or model. These defects occur during the manufacturing process and are not intended by the manufacturer.

To prove liability for a manufacturing defect, the plaintiff must show that the defect caused their injury or damage. For example, if a car has a defective brake system due to a manufacturing error and causes an accident, the manufacturer may be held liable for the damages.

To prove liability for a design defect, the plaintiff must show that there was a safer alternative design available and that the defect caused their injury or damage.

To prove liability for a warning defect, the plaintiff must show that the warning or instruction was inadequate or missing, and that the defect caused their injury or damage.

Know more about design defects here:

https://brainly.com/question/31032184

#SPJ11

If Billy Bob's barber shows a 5 percent increase in price of haircuts, then the elasticity of demand facing Billy bob's barber shop is 4.

The 'Price-Elasticity" of demand is defined as percent Change in quantity demanded divided by the percent Change in price.

The price-elasticity of demand is written as :

⇒ Price-Elasticity of demand = (percent Change in demand)/(percent Change in price),

The increase in the price of hair cut is = 5%,

The decrease in the number of haircuts is = 20%,

So, Price-Elasticity Of Demand = 20/5 = 4.

Therefore, the required price-elasticity of demand is 4.

Learn more about Price Elasticity here

https://brainly.com/question/14450755

#SPJ4

The correct option is C, Technologie increased restriction on foreign investments is not a driving force of globalization.  

Globalization refers to the process by which businesses and markets become increasingly interconnected and integrated across national boundaries. It involves the free flow of goods, services, capital, and information across borders, facilitated by advances in technology, transportation, and communication. It has also contributed to the concentration of wealth and power in the hands of a small number of large corporations, leading to concerns about inequality and environmental degradation.

Globalization has transformed the business landscape, enabling companies to expand their operations and reach new markets around the world. This has led to increased competition, greater efficiency, and the emergence of new business models and opportunities. However, globalization also presents challenges for businesses, including cultural and linguistic differences, regulatory and legal complexities, and ethical considerations.

To learn more about Globalization visit here:

brainly.com/question/15283031

#SPJ4

Complete Question:

which of the following is not a driving force of globalization? multiple choice

A). rise of the multinational corporation

B). advances in communications and transportation

C). technologie increased restriction on foreign investments

D). reductions in barriers to trade

The correct answer is c. Increases in the fraction of national debt held by foreigners increase the burden of debt service on future generations because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside.

The statement above means that a larger portion of the country's income is being used to service the debt, which can lead to higher taxes and reduced government spending on other programs. Additionally, foreign bondholding may push up interest rates at the date of issue, increasing crowding out and making it more difficult for the government to finance its spending. Thus, increases in the fraction of national debt held by foreigners increase the burden of debt service on future generations because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside. The correct answer is option c.

To learn more about national debt, visit: https://brainly.com/question/15561900

#SPJ11

Ace Corporation's new product, a single-load, scented, gel detergent encased in water-soluble bags designed to fit dishwasher detergent trays, is best described as a(n) innovative, convenient, and consumer-friendly dish washing detergent.

Ace Corporation's new product can be best described as an innovative, single-load, scented gel detergent encased in water-soluble bags. This product is designed to cater to the popular demand for convenient and effective dish washing solutions.

The gel detergent formula ensures optimal cleaning performance, while the pleasant scent enhances the user experience. The water-soluble bags provide a hassle-free method of adding the detergent to the dishwasher, as they are designed to fit perfectly into dishwasher detergent trays.

This eliminates the need for measuring and prevents spills, making the process more efficient and user-friendly.The introduction of this new product reflects Ace Corporation's commitment to addressing customer needs and staying ahead in the competitive dish washing detergent market.

By combining multiple desirable features, such as the single-load format, scented gel formula, and water-soluble bags, Ace Corporation is able to offer a unique and innovative product that differentiates them from their competitors and meets the evolving demands of modern consumers.

For more such question on Product, click on :

https://brainly.com/question/25922327

#SPJ11

The Return on Equity of The Peach Pit is 21.7%. The correct option is 1).

ROE, or Return on Equity, is a financial ratio that measures a company's profitability in relation to its shareholder equity. To calculate ROE, the company's net income is divided by its shareholder equity.

In this case, The Peach Pit's ROE can be calculated as follows:

ROE = Net Income / Shareholder Equity

ROE = Net Income / Assets (since there is no debt)

ROE = $25,000 / $115,000

ROE = 0.217 or 21.7%

Therefore, the correct answer is 1) 21.7%. This indicates that The Peach Pit generated a return of 21.7% on each dollar of shareholder equity. This is a positive sign as it shows the company is effectively utilizing its resources to generate profits for its shareholders.

To know more about Return on Equity, refer here:
https://brainly.com/question/27821130#
#SPJ11

The sustainable marketing concept focuses on socially and environmentally responsible actions, unlike the marketing concept, which focuses on fulfilling day-to-day needs of customers. The answer is D.

The sustainable marketing concept is a marketing philosophy that aims to promote sustainable practices and enhance the well-being of the environment and society while fulfilling the needs of customers.

This concept is different from the traditional marketing concept, which focuses on satisfying customers' day-to-day needs and wants while maximizing profits for the business. The sustainable marketing concept encourages businesses to consider the long-term impact of their actions on the environment and society and to adopt socially and environmentally responsible practices.

This includes activities such as reducing waste, conserving natural resources, and minimizing pollution. The goal is to create a sustainable future for both the business and society. In summary, the sustainable marketing concept emphasizes the importance of considering the broader impact of marketing actions beyond just immediate customer satisfaction and profits.

To know more about sustainable marketing, refer here:
https://brainly.com/question/9116837#
#SPJ11

Simply explained, the "snowball strategy" entails paying down the lowest of all of your loans as soon as feasible. After that debt has been paid in full.

You transfer the funds you were using to make that payment to the subsequent smallest  debt repayment . In a perfect world, this procedure would go on until all accounts were settled. Making minimal payments on all debts and paying off the smallest balances first before moving on to larger ones are part of the debt snowball strategy.

The debt avalanche strategy, which calls for discipline, can eventually lead to paying less interest. Pay each debt the bare minimum each month, but put all of your additional money toward the one with the highest interest rate. The "avalanche" method of debt payback is another name for this.

Learn more about debt repayment Visit: brainly.com/question/30814253

#SPJ4

Correct Question:

If a person with multiple sources of debt has a goal of eliminating one or more of them in as little time as possible, what type of debt repayment strategy would be best?

Asia of the following regions is appealing to business location choices because of government commitments to keep unions in check Asia.

An ethnocentric hiring strategy looks for nationals of the host country for all key posts, whereas a polycentric hiring strategy looks for the best candidates for key positions regardless of nationality.

Employees of an international organisation can be generically characterised as belonging to the parent country, the host country, or a third country. The employee's classification as a PCN, HCN, or TCN is based on their nationality.

To know more about business location visit :-

https://brainly.com/question/13778657

#SPJ1

Based on the given information, the inventory can satisfy about 21 days of demand.

This is calculated by dividing the order production quantity (18973 units) by the daily demand (300 units), which results in approximately 63 days of inventory. However, since the daily production is 400 units, only 300 units are needed to satisfy the daily demand, leaving 100 units to add to the inventory each day.

Therefore, the 63 days of inventory will only satisfy 21 days of demand before the inventory runs out.
To determine how many days of demand will be satisfied through inventory if more information is provided, we would need to know the amount of inventory currently on hand.

know more about inventory here

https://brainly.com/question/14184995#

#SPJ11

The role of the Five Whys in understanding human error in systems performance is to identify the root cause of a problem by repeatedly asking "Why?" until the true source of the issue is uncovered.

This technique helps to delve beyond symptoms and reach the underlying factors that contribute to human error. Here's a step-by-step explanation of how the Five Whys method works:

1. Begin with the observed problem or error in system performance.
2. Ask "Why?" to determine the immediate cause of the problem.
3. Continue asking "Why?" for each subsequent cause, focusing on human actions or decisions that contributed to the issue.
4. Repeat this process until the root cause is identified, typically after asking "Why?" five times.
5. Develop and implement corrective actions to address the root cause and prevent future occurrences.

As for the connection between the Five Whys and Dr. Deming's work, Dr. Deming emphasized the importance of continuous improvement, root cause analysis, and understanding the system as a whole.

The Five Whys technique aligns with Dr. Deming's philosophy by focusing on identifying the underlying cause of a problem rather than merely addressing symptoms. However, the Five Whys method might not fully match Dr. Deming's approach, as he advocated for a more comprehensive and systematic approach to problem-solving, such as his Plan-Do-Study-Act (PDSA) cycle.

In conclusion, the Five Whys plays a significant role in understanding human error in systems performance by helping identify root causes of problems. While it shares some similarities with Dr. Deming's work, the Five Whys might not be as comprehensive as the approaches he advocated for.

Learn more about Five Whys here: https://brainly.com/question/28962736

#SPJ11

When delivering bad news to an organization, the following actions should be taken:  Offer a clear, sincere explanation, Communicate the news openly Therefore, the correct options are B) offer a clear, sincere explanation and C) communicate the news openly.

Offering little explanation or letting employee rumors communicate the news are not appropriate actions when delivering bad news to an organization. It is important to be transparent and honest in order to maintain trust and respect from employees.

Learn more about  bad news,

https://brainly.com/question/29566577

#SPJ4

Full Question;

what should you do when delivering the bad news to your organization? check all that apply.

A offer little explanation

B offer a clear, sincere explanation

C communicate the news openly

D  let employee rumors communicate the news'

Answer: reproduce sexually and live in an unstable environment.

Evolution through natural selection will occur most rapidly for populations of plants that experience strong selective pressures, such as changing environmental conditions, predation, competition for resources, or disease.

These selective pressures can drive genetic variations within populations, leading to the survival and reproduction of individuals with advantageous traits. Rapid evolution may also occur in small populations with high mutation rates or in populations that experience frequent genetic exchange with other populations. Additionally, populations with shorter generation times and higher reproductive rates may exhibit faster evolution as genetic changes can accumulate more quickly over successive generations. Overall, the rate of evolution through natural selection in plant populations depends on the intensity and consistency of selective pressures, genetic variability, and reproductive dynamics within the population.

To know more about Evolution click here:

brainly.com/question/13492988

#SPJ11

To calculate the rate of return for the investor over a 30-year period, ignoring the salvage value, we can use the following formula:

Rate of Return = [(Annual Revenues - Annual Costs) / Initial Investment] x 100%

Plugging in the given values:

Annual Revenues = $20,000

Annual Costs = $6,000

Initial Investment = $250,000

Rate of Return = [($20,000 - $6,000) / $250,000] x 100%

Rate of Return = $14,000 / $250,000 x 100%

Rate of Return = 0.056 x 100%

Rate of Return = 5.6%

So, the investor would make a rate of return of 5.6% per year over a 30-year period, ignoring the salvage value.

If the property can be sold for $200,000, we can calculate the rate of return including the salvage value as follows:

Rate of Return = [(Annual Revenues - Annual Costs + Salvage Value) / Initial Investment] x 100%

Plugging in the given values:

Salvage Value = $200,000

Rate of Return = [($20,000 - $6,000 + $200,000) / $250,000] x 100%

Rate of Return = $214,000 / $250,000 x 100%

Rate of Return = 0.856 x 100%

Rate of Return = 85.6%

So, the rate of return including the salvage value would be 85.6% per year.

To know more about investor click here:

brainly.com/question/30828591

#SPJ11

The correct order of items on a multiple-step income statement is: 1. Operating revenues 2. Income from operations 3. Operating expenses 4. Other revenue and expenses 5. Income before taxes 6. Income taxes 7. Net income So, the correct choice is option C (6, 1, 7, 4, 2, 3, 5).

An income statement is a financial statement that shows a company's revenues and expenses over a specified period of time, typically a quarter or a year. It is also known as a profit and loss statement or P&L statement.

The income statement is divided into two main sections: revenues and expenses. The revenues section shows all the money the company has earned from its primary business operations during the period. The expenses section shows all the costs incurred by the company during the same period, including the cost of goods sold, operating expenses, interest expenses, taxes, and any other expenses incurred in the course of doing business.

The bottom line of the income statement is the net income, which is calculated by subtracting total expenses from total revenues. A positive net income means that the company made a profit during the period, while a negative net income means that the company incurred a loss.

This is the correct order for a multiple-step income statement, which first lists operating revenues and deducts operating expenses to arrive at income from operations. Then, other revenue and expenses are added or subtracted to arrive at income before taxes, which is then reduced by income taxes to arrive at net income. The correct answer is option C: 6, 1, 7, 4, 2, 3, 5.

Learn more about Income Statements: https://brainly.com/question/15169974

#SPJ11

Management Information Systems( MIS) is the study of people, technology, associations and the connections between them.

The AND function determines whether one of the conditions of a sense test is true. A common use of the AND function is to extend the mileage of other functions that perform sense tests.

MIS experts help associations get the most from their investments in people, outfit and business processes. Civilians is a people- centric field with an emphasis on services through technology.

features include:

To know more about Management Information System,

brainly.com/question/26477014

#SPJ4

Financial leverage refers to using debt to finance a company's operations. It is calculated by dividing the company's total debt by its equity. When a company takes on more debt, it increases its financial leverage.

Conversely, depreciation is a non-cash expense that reduces a company's taxable income but does not affect its actual cash flow. It does not directly impact a company's financial leverage. An increase in the number of shares of common stock outstanding, known as stock dilution, can actually decrease a company's financial leverage because it increases the amount of equity in the company.

Therefore, option B, an increase in interest expense, is the correct answer as it means the company is taking on more debt, which increases its financial leverage.

To learn more about financial leverage, visit here

https://brainly.com/question/31063572

#SPJ4

To control an externality in the aux cable market using a quota, the government would set a limit on the quantity of aux cables that can be sold. The optimal quantity limit would be the point where the marginal social cost (MSC) curve intersects the demand curve.

This is because the MSC curve represents the total cost of producing the product, including any external costs imposed on society, while the demand curve represents the willingness of consumers to pay for the product. By setting the quota at this quantity, the market will achieve the optimal level of production that balances the benefits to consumers with the costs imposed on society.

Looking at the graph, the intersection of the MSC curve and the demand curve occurs at a quantity of 8 units. Therefore, a quantity limit of 8 units would be chosen as the optimal quota to control the externality in this market.

Learn more about curve intersects

https://brainly.com/question/11482157

#SPJ4

Full Question ;

Use the graph to answer the question. Marginal Price social Marginal cost private $18 cost $15 $12 $9 $6 $3 0 2 6 8 10 Demand 12 Quantity The graph shows the marginal social cost, marginal private cost, and demand curves in the aux cable market. If the government uses a quota to control an externality in this market, what quantity would be chosen as a limit on sales?

Even though the airline claims to lose money on the route, the planes that fly it are generally packed. This loss might arise when fixed costs are insufficiently covered. Here option B is the correct answer.

The airline's situation described in the question is an example of a common phenomenon in the airline industry: despite seemingly high ticket prices and full planes, airlines may still lose money on certain routes. In this case, the airline has a marginal cost per passenger of $30 but charges a fare of $400.

However, the airline claims that it is losing money on the route. This can occur for several reasons, but the most likely explanation is that fixed costs are so high that they are not being covered. Fixed costs are expenses that do not change with the level of production or sales.

Examples of fixed costs for an airline might include expenses for aircraft acquisition and maintenance, airport fees, and salaries for administrative and ground staff. In contrast, variable costs are expenses that increase as production or sales increase, such as the cost of fuel, food and beverages, and other materials needed for the flight.

In this scenario, the airline's marginal cost per passenger is relatively low compared to the ticket price, but the fixed costs associated with the route are so high that the airline is unable to cover them with ticket revenue. As a result, the airline is operating at a loss on this route.

To learn more about fixed costs

https://brainly.com/question/13954526

#SPJ4

The most correct statement among the given options is D) The use of inappropriate audit procedures is a significant cause of nonsampling risk. Nonsampling risk includes all other risks that are not related to sample selection or size, and inappropriate audit procedures.

A) A sample of all items in a population will eliminate sampling risk since there will be no sample to infer conclusions about the population. However, it will not necessarily increase nonsampling risk, as nonsampling risk is associated with factors other than sample size and selection.

B) While the use of an appropriate sample selection technique can improve the representativeness of a sample, it does not guarantee a representative sample. Other factors, such as the inherent variability of the population, can also impact the representativeness of a sample.

C) The auditor's failure to recognize an exception, although it can cause errors in the audit, is not a significant cause of sampling risk. Sampling risk arises due to the fact that a sample may not accurately represent the entire population, whereas the failure to recognize an exception is a form of nonsampling risk.

D) The use of inappropriate audit procedures is a significant cause of nonsampling risk. Nonsampling risk includes all other risks that are not related to sample selection or size, and inappropriate audit procedures can lead to errors or misstatements in the audit.

These errors may occur due to factors such as the auditor's lack of competence, inadequate supervision, or the use of incorrect or insufficient procedures to gather and evaluate audit evidence.

To know more about nonsampling refer here:

https://brainly.com/question/30543138#

#SPJ11

If ending inventory for 20x5 is understated because certain items were missed in the count, then the correct option is: b. Net income for 20x5 will be understated and CGS for 20x6 will be understated.

Understating the ending inventory for a period will cause an understatement of the net income for that period because the cost of goods sold (COGS) will be overstated. This is because COGS is calculated as beginning inventory plus purchases minus ending inventory. Therefore, an understated ending inventory will result in an overstated COGS and thus a lower net income.

Furthermore, the understatement of ending inventory for the current period will lead to an overstatement of the cost of goods sold for the next period. This is because the ending inventory for the current period becomes the beginning inventory for the next period. So if the ending inventory for the current period is understated, then the beginning inventory for the next period will be understated as well, causing an overstatement of COGS for the next period.

Learn more about net income  at https://brainly.com/question/15530787

#SPJ1

To answer this question, we need to use the consumer price index (CPI) as a measure of inflation. The CPI measures the average price of a basket of goods and services consumed by households and is used to track changes in the cost of living over time.  The correct option is C. increased more rapidly than inflation.

Using the CPI data provided, we can calculate the inflation rate between 2014 and 2017 as follows:

Inflation rate = (CPI in 2017 - CPI in 2014) / CPI in 2014 x 100%

Inflation rate = (245.1 - 236.7) / 236.7 x 100%

Inflation rate = 3.55%

This means that, on average, prices increased by 3.55% per year between 2014 and 2017.

Now, let's look at the tuition increases over the same period. Tuition increased from $5,000 to $5,500, which is a percentage increase of:

Percentage increase = (New price - Old price) / Old price x 100%

Percentage increase = (5,500 - 5,000) / 5,000 x 100%

Percentage increase = 10%

So, tuition increased by 10% between 2014 and 2017.

Comparing the inflation rate (3.55%) to the tuition increase (10%), we can see that tuition increased more rapidly than inflation. Therefore, the answer is C. increased more rapidly than inflation.

Learn more about Consumer Price Index :- https://brainly.com/question/1889164

#SPJ11

Crowdfunding can best be described as raising small amounts of money from large numbers of people. Option (d)

Crowdfunding is a method of financing that enables individuals and organizations to raise funds for their projects, businesses, or causes by soliciting small contributions from a large number of people. Crowdfunding is typically conducted through online platforms, which allow fundraisers to connect with potential backers and promote their campaigns.

Crowdfunding has become increasingly popular in recent years, as it provides a new source of funding for entrepreneurs, artists, and social activists who may have difficulty accessing traditional financing. Crowdfunding also enables individuals to contribute to causes and projects that align with their values and interests, creating a sense of community and shared purpose.

Learn more about Crowdfunding

https://brainly.com/question/28096793

#Spj4

The given statement the tax cuts and jobs act of 2017 eliminates the tax issue about repatriating overseas profits is FALSE

Under the previous tax system, U.S. companies were subject to U.S. taxes on their worldwide income, but they could defer paying U.S. taxes on their foreign income until they repatriated that income back to the U.S.

This created an incentive for companies to keep their foreign profits offshore, rather than bringing them back to the U.S. and paying the higher U.S. tax rate. The Tax Cuts and Jobs Act of 2017 introduced a one-time tax on accumulated foreign earnings and eliminated the deferral system for foreign profits going forward, among other changes.

However, the issue of repatriating overseas profits remains a complex tax issue for multinational corporations.

To know more about  tax cuts, refer here:
https://brainly.com/question/27058968#
#SPJ11

Roy Petrie is a flower wholesaler. he buys sparkling flowers from nations in south the us, divides the big batches into small bunches, and can provide them to unbiased florists. this process is called breaking bulk.

Breaking bulk refers to the process of unpacking, sorting, and redistributing goods that have been transported in bulk quantities, typically by ship or rail, to individual customers or smaller retail outlets. This process is an important aspect of logistics and supply chain management, as it allows for the efficient distribution of goods across multiple locations and markets.

Breaking bulk often involves the use of warehouses or distribution centers, where goods are stored and sorted based on destination and customer demand. For example, a container ship carrying thousands of boxes of a particular product may be unloaded at a port and transported to a nearby warehouse, where the boxes are unpacked, sorted, and distributed to various retailers or customers in smaller quantities.

To learn more about Breaking Bulk visit here:

brainly.com/question/30714481

#SPJ4

Hi! To find the price of a bratwurst in terms of hot dogs, we need to first convert the cost of a bratwurst to dollars using the given exchange rate, and then compare it to the cost of a hot dog.

1. Initial exchange rate: $1.40/euro
Bratwurst cost: 2 euros * $1.40/euro = $2.80
Relative price of bratwurst to hot dog: $2.80 (bratwurst) / $2.00 (hot dog) = 1.40 hot dogs

2. Appreciated exchange rate: $1.30/euro
New bratwurst cost: 2 euros * $1.30/euro = $2.60
New relative price of bratwurst to hot dog: $2.60 (bratwurst) / $2.00 (hot dog) = 1.30 hot dogs

Compared to the initial situation, a hot dog has become less expensive relative to a bratwurst.

learn more about convert

https://brainly.com/question/29497540

#SPJ11

The interest rate for the money market fund to the nearest tenth is 40.7%.

We can do this by subtracting the initial investment amount from the final investment amount: $73,627.26 - $73,329.23 = $298.03

This means that the account earned $298.03 in interest over the course of the month.

To find the interest rate, we need to divide the amount of interest earned by the initial investment amount and then multiply by 100 to get a percentage:

 ($298.03 / $73,329.23) x 100 = 0.407 x 100 = 40.7%
It's important to note that the interest rate for a money market fund is influenced by various factors in the market, such as changes in interest rates set by central banks and economic conditions. This means that the interest rate for a money market fund can vary over time. It's always a good idea to keep an eye on the market and interest rates when investing in a money market fund.

For more such questions on market

https://brainly.com/question/25369230

#SPJ11

Slick Oil and Gonzo Gas have entered into a futures contract. Slick Oil suffers a loss of $500,000 from its contract with Gonzo Gas.

A futures contract is an agreement between two parties to buy or sell a specific quantity of a commodity at a predetermined price on a specific future date. In this case, Slick Oil agrees to deliver one million barrels of crude oil to Gonzo Gas at $65 per barrel on February 27, 2015.

On that date, the market price of crude oil is $65.50 per barrel. As Slick Oil agreed to sell at $65 per barrel, it suffers a loss of $0.50 per barrel ($65.50 - $65) compared to the market price.

To calculate the total loss, multiply the per-barrel loss by the total number of barrels in the contract: $0.50 x 1,000,000 barrels = $500,000.

To know more about market price click on below link:

https://brainly.com/question/13019013#

#SPJ11