3.20 is the real risk-free rate
<h3>What is
risk-free rate?</h3>
The risk-free rate of return, commonly abbreviated as the risk-free rate, is the rate of return on a hypothetical investment with scheduled payments over a set period of time that is assumed to meet all payment obligations.
Subtract the inflation rate from the yield on the Treasury bond that corresponds to the duration of your investment to calculate the real risk-free rate.
The risk-free rate determines the return an investor can expect from an investment over a specified time period. A risk-free rate is calculated by deducting the current inflation rate from the total yield of the treasury bond that corresponds to the investment duration.
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The board of directors, employees, and owners are an organization's internal stakeholders.
<h3>What is the role of internal stakeholders?</h3>
People who have a direct interest in a company, such as through employment, ownership, or investment, are said to be internal stakeholders. External stakeholders are people who do not directly work for a company but are nonetheless impacted in some way by the decisions and results of the enterprise. They participate in the company's management and have voting rights.
They are both members of the board of directors and the company's largest investors. As a result, they possess all the authority that other members of higher-level management do and are able to alter the course of the business. According to research, employees are by far the most significant stakeholder group for organizations, coming out ahead of clients, vendors, neighborhood associations, and shareholders by a wide margin.
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Answer:
10%
Explanation:
Data provided in the question
Purchase value of the stock = $80
Number of years = 15
Times = 4
So, the return on owning this stock is
= Number of times^(1 ÷ number of years) - 1
= 4^(1÷15) - 1
= 4^0.0666666667 - 1
= 1.0968249797 - 1
= 0.0968249797
= 10% round off
All other things that are mentioned in the question is not relevant. Hence, ignored it
Answer:
B. The hedge is asymmetric.
Explanation:
Hedging refers to a technique or a mechanism whereby firms and individuals aim for risk reduction, arising out of uncertain and volatile business situations, which may result into a heavy loss.
For example, an exporter entering into a forward contract to eliminate or reduce the risk of arising out of a future situation wherein, future receipts denominated in a foreign currency, receivable at a future date, may be less than same receipts receivable at current spot exchange rate as on today.
Currency hedge ratio depicts the proportion of total exposure which is covered by hedge w.r.t the total exposure itself.
Asymmetrical hedge refers to covering an exposure by an opposite position wherein the chances of earning profits are higher than the losses current position can lead to. Such an hedge would be similar to covering a call option with a put option. Asymmetrical refers to being of dissimilar or non equal size. Here, it refers to the dissimilarity between prospective profits and losses.
Under a perfect hedge, the loss position in a scenario is completely covered i.e 100% by a prospective gain in other situation, with there being negative correlation between the two scenarios such as if scenario 1 yields a profit, scenario 2 would yield a loss and vice versa.
Answer:
b) 5
Explanation:
W TP MP MRP
1 100
2 190 90 900
3 270 80 800
4 340 70 700
5 400 60 600
6 450 50 500
7 490 40 400
8 520 30 300
the marginal product of n labor = (total product of n labor - the total product of p labor)/(n-p)............(n>p)
Marginal revenue product = marginal product*price
the firm employ input up to marginal revenue product equal to the wage
MRP = wage or closest lower wage
where W = 5
the firm will higher 5 workers.
