1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sveticcg [70]
3 years ago
15

Which of the following does not describe​ derivatives? A. These financial instruments are often used to speculate. B. Insurance

is required when purchasing derivative securities. C. They are assets that derive their economic value from an underlying​ asset, such as a stock or bond. D. These financial instruments are often used to hedge against risk
Business
1 answer:
Elden [556K]3 years ago
7 0

Answer:

B. Insurance is required when purchasing derivative securities

Explanation:

  • A derivative is a contract that is drives its values to form the underlying entity and can be interest rates and assets and includes the insurance against the price movement such as hedging.
  • <u>Some of the common derivatives are the futures, swaps and the options and forwards. </u>
You might be interested in
Under what economic system do all businesses operate only as directed by the government?
Sergeu [11.5K]
<span>hello there your answer would be communism</span>
7 0
3 years ago
According to the theory of liquidity preference, if the supply of real money balances exceeds the demand for real money balances
Sedbober [7]

Answer:

Sell interest-earning assets in order to obtain non-interest-bearing money

Explanation:

The liquidity preference theory states that investors prefer cash or highly liquid assets to long term assets that carry high risk.

When investors obtain long term assets the charge higher interest rates or premium in order to mitigate associated risk.

In this scenario when the supply of money is higher than demand, there is abundance of non interest bearing money that is highly liquid.

According to the liquidity preference theory investors will sell their interest bearing assets and go for assets with high liquidity (non Interest bearing money)

3 0
3 years ago
Read 2 more answers
You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 9.775%. The current risk-
Lilit [14]

Answer:

9.62%

Explanation:

Re = Rf + (B x Rp)

Re = cost of equity = 9.775%

Rf = risk free rate = 4%

B = beta = 1.05

Rp = risk premium = ?

Rp = (Re - Rf) B = (9.775% - 4%)/1.05 = 5.5%

Re portfolio = Rf + {Rp x [(B₁ x $5/$5.5) + (B₂ x $0.5/$5.5)]}

Re portfolio = 4% + {5.5% x [(1.05 x $5/$5.5) + (0.75 x $0.5/$5.5)]}

Re portfolio = 4% + {5.5% x [0.9545 + 0.0682]}

Re portfolio = 4% + 5.6249% = 9.62%

6 0
3 years ago
Irolt, a company that supplies fast-moving consumer durables, recruits only graduates from top business schools as management tr
e-lub [12.9K]

Answer:

<u>A creative work environment.</u>

Explanation:

A creative work environment is often found in companies with a decentralized organizational structure. This type of structure is more flexible than in a centralized structure, has a lower degree of hierarchy and greater participation of employees in decision-making processes.

A company that has a creative work environment, ensures that its employees have more freedom to solve their own problems and contribute with innovative ideas and suggestions, which ensures a greater sense of employee participation, increases motivation and work valorization .

7 0
3 years ago
Select all that apply Which of the statements below summarize why a seller would give a sales allowance? (Check all that apply.)
Varvara68 [4.7K]

Answer:

I. In order to entice a customer to keep damaged or defective merchandise, the seller is willing to decrease the selling price.

II. The seller wants to avoid future lost sales.

III. The seller wants to keep a customer happy.

IV. Sold merchandise was defective or unacceptable.

Explanation:

Sales allowance can be defined as a reduction in the price of goods that a seller gives to a customer due to quality issues, incorrect pricing, shipping, etc.

The statements which best summarize why a seller would give a sales allowance are;

I. In order to entice a customer to keep damaged or defective merchandise, the seller is willing to decrease the selling price.

II. The seller wants to avoid future lost sales.

III. The seller wants to keep a customer happy.

IV. Sold merchandise was defective or unacceptable.

5 0
3 years ago
Other questions:
  • What is the future value of $750 one year from today if the interest rate is 2.5 percent? a. $768.75 b. $766.50 c. $770.23 d. no
    6·1 answer
  • Documents with a lot of text and not much white space:_______
    11·1 answer
  • Equipment, beginning of year $ 340,000 Equipment, end of year 420,000 Accumulated depreciation, beginning of year 190,000 Accumu
    9·1 answer
  • FILL IN THE BLANK
    9·1 answer
  • How much money does a teacher make
    10·1 answer
  • PS.02 A process that utilizes inexpensive general-purpose capital equipment will tend to have higher skilled workers.
    10·1 answer
  • Suppose Pheasant Pharmaceuticals is evaluating a proposed capital budgeting project (project beta) that will require an initial
    5·1 answer
  • Question 13 of 20
    13·1 answer
  • [The following information applies to questions 14-16.]
    12·1 answer
  • Calculate percent change if the original value of your stock was $25 and the new value of your stock $30
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!