Answer:
The answer is 32.6%
Explanation:
Solution
Given that
An assets has a return average of =10.19%
Standard deviation =22.41%
Probability in any given year =16%
Now
The most you should expect to earn in any given year with a probability of 16 percent is = 10.19 + 22.41
= 32.6
Therefore,what you should expect in given year to lose is 32.6%
Answer:
$5030.45
Explanation:
Triangular arbitrage results when there is a discrepancy in the exchange rate of 3 foreign currencies. Traders can make a lot of money if they see this opportunity correctly.
Given:
Dollars to Yen >>> $0.007 = ¥ 1
Dollars to CAD >>> $0.821 = 1 CD
CAD to Yen >>> 1 CD = ¥ 118
Now, you have $5000,
Converting to CAD:
5000/0.821 = 6090.13 CAD
Converting to Yen:
6090.13 CAD * 118 = ¥ 718635.81
Converting back to USD:
¥ 718635.81 * 0.007 = $5030.45
So, you end up with $5030.45 from this triangular arbitrage opportunity.
Answer:
0.333
Explanation:
Cpk = Cpl or CPU ( the lower is taken as the cpk)
Where Cpl = (USL - Mean)/ 3 × standard deviation
CPU = (mean - LSL)/3 × standard deviation
Where
The process mean = 5
Tolerance = 0.05
Sample mean = 5.000 inches
Standard deviation (sd) = 0.050 inches
Upper standard limit (USL) = 5 + 0.05 = 5.05
Lower standard limit (LSL) = 5 - 0.05 = 4.95
Cpl = (USL - Mean)/ 3 × standard deviation
= (5.05 - 5)/ 3 × 0.05
= 0.05/0.15
Cpl = 0.333
Cpk = Cpl = 0.333
Answer:
he percentage increase in purchasing power that the lender receives on a loan.
Explanation:
Interest rate is the rate earned on deposits or the rate charged on loans.
Interest rate could be real or nominal
Nominal interest rate is real interest rate plus inflation rate
Real interest rate is interest rate that has been adjusted for inflation
The higher the real interest rate, the higher the increase in purchasing power of the lender
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
