Answer:
The question is missing the options which are below:
A Real risk-free rate differences.
B Tax effects.
C Default risk differences.
D Maturity risk differences.
E Inflation differences.
The correct answer is option C,default risk differences.
Explanation:
Default risk is the increase in return given to an investor to compensate the investor for the likely losses that may arise due to the inability of the borrower to make funds available to the investor on the maturity date or even in required amount.
Different debt instruments have different default risk depending on their credit rating as rated by international rating agencies.Such rating is a function of many factors,which includes:
Balance sheet position
Profitability
Liquidity strength of the company
Macro-economic factors and some others.
Liquidity refers to the ability of the company to settle obligations such as repayment of bonds and interest when due.
Invariably,liquidity has a higher impact in determining credit rating as well as default risk of an instrument.
All standalone PDP formularies have a Five-tier structure for 2022.
This is based on the regulations laid down by the Centers for Medicare & Medicaid Services (CMS).
Also, based on CMS directives, Wellcare 2022 Prescription Drug Plan (PDP), Consolidation has reduced the standalone PDP offerings to three plans.
The current practice is six plans in about 34 regions across all 50 states and D.C.
Hence, in this case, it is concluded that " All standalone PDP formularies have a Five-tier structure for 2022."
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Answer:
Case 1: The purchasing power of money will decrease, prices will increase and nominal interest rate will decrease.
Case 2: The purchasing power of money will increase, prices will decrease and nominal interest rate will increase.
Case 3: The purchasing power of money will increase, prices will decrease and nominal interest rate will increase.
Case 4: The purchasing power of money will decrease, prices will increase and nominal interest rate will decrease.
Explanation:
Case 1: The purchasing power of money will decrease, prices will increase and nominal interest rate will decrease.
Case 2: The purchasing power of money will increase, prices will decrease and nominal interest rate will increase.
Case 3: The purchasing power of money will increase, prices will decrease and nominal interest rate will increase.
Case 4: The purchasing power of money will decrease, prices will increase and nominal interest rate will decrease.
Answer:
The Mean return = 0.8*16.5% + 0.2*-11.6%
The Mean return = 0.132 + (-0.0232)
The Mean return = 0.132 - 0.0232
The Mean return = 0.1088
The Mean return = 10.88%
Variance = 0.8*(16.5%-10.88%)^2 + 0.2*(-11.6%-10.88%)^2
Variance = 0.8*(5.62%)^2 + 0.2*(-0.72%)^2
Variance = 0.012634
Answer:
$150,000
Explanation:
Given that
Total revenue = $800,000
Explicit cost = $450,000
Implicit cost = $200,000
The computation of the accounting profit is as shown below :-
= Total revenue - Total cost
= $800,000 - $650,000
= $150,000
Total cost = Explicit cost -Implicit cost
= $450,000 + $200,000
= $650,000
Therefore for calculating the accounting profit we simply deduct the total cost from total revenue.
