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2 years ago

Investment mathematics

Business

1 answer:

8_murik_8 [283]2 years ago

4 0

Hii :))

Investment Mathematics is a book which provides an introductory analysis of investments from a quantitative viewpoint, drawing together many of the tools and techniques required by investment professionals.

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Golden has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the d

attashe74 [19]

Answer:

The answer is c. Enter into a forward contract to sell 30,000 euros in 30 days

Explanation:

The risk Golden is facing is the exchange rate risk. Specially, as of the firm's concern, 30,00 euros they will receive in 30 days will not be worth as much as it is now because the Euro is expected to be depreciated against the firm's domestic currency.

So, they may enter into a forward contract allowing them to sell 30,000 euros in 30 days ( take short position in Euro) at pre-determined exchange rate. By doing so, they effectively eliminate the exchange rate risk by lock-in the exchange rate at the day they receive 30,000 euro.

8 0

3 years ago

There is a connection between the content of an advertisement and the characteristics of the media used to carry the message. Th

GuDViN [60]

Answer: a. Television

b. Radio

c. Magazine

d. Newspaper

e. Internet/Mobile

f. Outdoor/Billboard

g. Direct marketing

Explanation:

Based on the different types of media available, the answers to the items below will be:

a. High cost: several channel and program options; may increase awareness of competitors' products.

The above description is for Television.

b. Relatively inexpensive; can be selectively targeted; wide reach.

The above description is for Radio.

c. Very targeted; subscribers pass along to others.

The above description is for Magazine

d. Can be expensive some markets; advertisements have short life span.

The above description is for Newspaper.

e. Can be linked to detailed content; highly flexible and interactive; allows for specific targeting.

The above description is for Internet/Mobile

f. Is not easily targeted; has placement problems in some markets; exposure time is very short.

The above description is for Outdoor/Billboards

g. Highly targeted; allows for personalization.

The above description is for direct marketing

7 0

3 years ago

An insured's CGL has a Products and Completed Operations Aggregate Limit of $100,000 with a $20,000 limit per occurrence. Follow

Alexeev081 [22]

Answer:

lol i knew it then had to do something and forgot

Explanation:

7 0

4 years ago

If 1-Year Treasuries are yielding 5%, all preferred stocks are yielding 10%, and a manager selects a portfolio of preferred stoc

Burka [1]

Answer:

Risk Premium is 10%

Explanation:

Government treasuries represent risk free rate of return.

[tex]Risk Premium=R_{m}-R_{f}/tex] ,

where, [tex]R_{f} = Risk\ Free\ Rate\ Of\ Return/[tex]

[tex]R_{m} = Market\ Rate\ Of\ Return/[tex]

Risk Premium = 15 - 5 = 10%

Risk Premium is defined as return earned on market portfolio in excess of rate of return earned on risk free assets such as government treasury bonds.

So, Risk Premium refers to the compensation an investor expects to earn for assuming higher risk by investing in market portfolio instead of investing his money in risk free class of assets.

4 0

3 years ago

Read 2 more answers

If the graphic representation for sports cars is a vertical demand curve, then the demand for sports cars is more likely a. unit

frutty [35]

Answer:

b. perfectly inelastic.

Explanation:

A vertical demand curve means that quantity demanded would remain the same no matter the change in price. It means demand is perfectly inelastic.

Perfectly Inelastic demand means that quantity demanded doesn't respond to changes in price.

Demand is unit elastic if a small change in price has a greater effect on the quantity demanded.

Demand is perfectly elastic if quantity demanded falls to zero if there's a changes in price.

Demand is inelastic if a small change in price has little or no effect on quantity demanded.

I hope my answer helps you

4 0

3 years ago