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Pani-rosa [81]
2 years ago
12

1. What is the relationship between forward rates and the market’s expectation of future short rates? Explain in the context of

both the expectations hypothesis and the liquidity preference theory of the term structure of interest rates.
Business
1 answer:
Dvinal [7]2 years ago
6 0

Through the expectations hypothesis and the liquidity preference theory of the term structure of interest rates, liquidity must be zero for the forward rate to be equal to the expectations of future short rates.

<h3 /><h3>What is expectation theory?</h3>

Corresponds to a forecast of short-term interest rates by analyzing them against current long-term interest rates.

Therefore, it is a theory used to assist in better understanding and forecasting short-term securities trading in the future.

Find out more about expectation theory here:

brainly.com/question/20630240

#SPJ1

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How do organizations calculate various costs, and what do these calculations mean to business?
QveST [7]

Answer:

See the explanation section

Explanation:

Organizations calculate various costs with the help of the weighted average cost of capital. It is a significant cost measurement system through which organizations can calculate the cost of debt after tax, cost of new equities, cost of existing equities, and cost of preferred shares. WACC can be a benchmark for the organization. A firm needs to know those costs because it can make sure that whether those projects are running smoothly to continue or running worse to reject.

Another significant cost measurement method is the net present value. With the help of NPV, a business can make sure about a project to accept it or reject it.

8 0
3 years ago
The exercise value is also called the strike price, but this term is generally used when discussing convertibles rather than fin
ryzh [129]

Answer:

False

Explanation:

The strike price is used at the time of trading of the options, while on the other hand the option that could be exercised is when take place when there is a delivery of the stock. Basically it means that the stock that can be predicted value and it is set by the seller of the contract. Also it is to be termed as the convertible bonds, but it should be more used for the option trading

Therefore the given statement is false

3 0
3 years ago
Which of the following outcomes is not a direct result of a market​ analysis?
uranmaximum [27]
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.

below are the choices that should accompanied your question above the answer is D. 

<span>a. corporate responses to changes in the business environment
b. assessment of competitors strengths
c. identification of customer needs
d. development of core competencies</span>
8 0
3 years ago
A rock-climbing school faces two demand curves. the demand by local residents is q = 400 – 0.5p, and the demand by others is q =
horrorfan [7]
A rock-climbing school faces two demand curves. The demand by local residents is Q = four hundred - zero.fivep and the demand by others is Q = five hundred - zero.fivep. The marginal costs of serving either local residents or other are constant at one hundred dollars. If the rock-climbing school system third-degree price discrimination, It will charge local citizens and others a price of four hundred fifty dollars and five hundred fifty dollars, respectively.
7 0
3 years ago
If contracting a vendor for multiple locations, particularly over a wide geographic area, the most important factor would be
OLga [1]

Criteria in contracting a vendor are:

<span> Years in business Ability to constantly supply products. Ability to supply complete requirements. Flexibility to allow changes in orders or product lines. Substantial catalogue of products. Has staff that can answer questions you may have. Testimonials and references. Sustainability and financial stability. Prices. Delivery times. Terms of business. Customer service. </span>

<span>The most important factor to consider in contracting a vendor for multiple locations would be delivery times. </span><span>You need assurance that deliveries can be made where and when you want them.</span>

5 0
3 years ago
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