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Elanso [62]
4 years ago
7

The term "Greenspan Put" was coined to describe a federal regulation, crafted by Alan Greenspan as Chair of the Federal Reserve,

that prohibited investment firms from taking large risks without sufficient capital to cover their losses.a. Trueb. False
Business
1 answer:
Ilia_Sergeevich [38]4 years ago
7 0

Answer:

The correct answer is letter "A": True.

Explanation:

Named after American economist and the United States Federal Reserve chairman Alan Greenspan (born 1926), the "Greenspan Put" was a contractual obligation providing a put option holder the ability to sell the asset to another party at a certain price. The put option could be exercised if the price fell below that put price so it could protect the holder from further losses. In other words, even in front of a large risk, investors would be protected to avoid major losses.

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The Up and Coming Corporation's common stock has a beta of 0.9. If the risk-free rate is 4 percent and the expected return on th
Mashutka [201]

Answer:

r = 0.139 or 13.9%

Option e is the correct answer

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the market return

r = 0.04 + 0.9 * (0.15 - 0.04)

r = 0.139 or 13.9%

8 0
3 years ago
When an Accounts Payable department improves their information system resulting in faster payments to vendors, without the Accou
weeeeeb [17]

Answer: C) suboptimization

Explanation:

The Accounts Payable department's system has been optimized yet the Accounts receivable's system has not been optimized. This means that the company as a whole is suboptimized because only one department was optimized and the other was not.

It can lead to problems such as a credit crunch because the company is paying cash faster than it is receiving it. If both departments were optimized, this wouldn't be the case as the payments and receipts would tally.

4 0
3 years ago
Janine Alberg's day care cente rhas only one direct competitor on her side of town, but a substitute service is
Licemer1 [7]
The service of a legal writ.
8 0
3 years ago
What is the difference between global trade and domestic trade?
Tcecarenko [31]
Domestic trade is trade<span> occurring inside a particular country, while global is between nations, think international.</span>
4 0
3 years ago
Read 2 more answers
A straight bill of lading is most likely to be used under which of the following circumstances?
Lina20 [59]

A straight bill of lading is most likely to be used when the shipment is to an affiliate.

In keeping with finance management, a straight bill of lading is a document wherein a seller concurs to apply a specific shipping option to ship goods to a sure vicinity, and the invoice is then assigned to a mainly named consignee.

A straight bill of Lading is a non-negotiable invoice of lading. it's miles used when the goods which can be being brought are already paid for or are donations or presents and don't require a charge. The usage of this, the consignee is delivered the products via the delivery business enterprise upon presentation of identification.

The difference between a straight bill of lading and a reserve invoice of lading is the fee fame of the products being shipped. An instant invoice of lading is issued when the goods have been paid for in advance by way of the consignee to the shipper.

Learn more about bills here brainly.com/question/15339309

#SPJ9

4 0
2 years ago
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