"A cross-hedging strategy is most effective with currencies that are <u>highly positively correlated</u>; currency diversification is most effective with currencies that are <u>not highly correlated.</u>"
<u>Explanation:</u>
Cross hedging is a idea that is used to mange risk. This is done by investing in two securities. Those two securities are correlated and that too positively. Which means their prices goes in the identical direction. It helps in minimizing the risks associated.
So,A cross hedging strategy is most efficient when currencies are positively correlated,
Currency diversification is a strategy where more than one currency is used in investment. It leads to less exchange rate risk. This strategy is most effective with currencies that are not highly correlated. Which means increase in one currency causes no increase in other currency.
Answer:
<em>The big goal of real estate investing is to increase your cash, otherwise known as building capital. </em>
The answer would be A, command economy
Answer and Explanation:
The computation is shown below:
a. Contribution margin per unit
As we know that
Contribution margin per unit = Selling price per unit - variable cost per unit
Particulars Product A Product B Product C
Selling price per unit $76 $56 $66
Variable cost per unit $48 $19 $39
Contribution margin per unit $28 $37 $27
b. Contribution margin per direct labor hour for each product
Contribution margin per direct labor hour = Contribution margin per unit ÷ Direct labor hours per unit
Particulars Product A Product B Product C
Contribution margin per unit $28 $37 $27
Direct labor hours per unit 2.5 3.9 2.9
Contribution margin per direct labor hour $11.2 $9.49 $9.31
c. Based on the contribution margin per direct labor hour, the product that should be more focused is product A
Answer:
The correct answer is option d.
Explanation:
Absolute advantage refers to the situation when a firm can produce more of a commodity at the same cost, or same level of commodity at a lower cost.
Morocco can produce 25 metric tons of grain and 75 metric tons of date.
While France can produce 20 metric tons of grain and 10 metric tons of date.
We see that Morocco can produce more of both the commodities so it has an absolute advantage in production of both grain and dates.
Comparative advantage refers to the situation when a country is able to produce a commodity at a lower opportunity cost.
The opportunity cost of producing a metric ton of dates for Morocco is
= 
= 
= 0.2
The opportunity cost of producing a metric ton of dates for France is
=
= 
= 2
Morocco has a lower opportunity cost in producing dates so we can say that it has comparative advantage in producing dates.
The opportunity cost of producing a metric ton of grain for Morocco is
=
= 
= 5
The opportunity cost of producing a metric ton of grain for France is
=
= 
= 0.5
France has a lower opportunity cost in producing grains so we can say that it has comparative advantage in producing grains.
