Answer:
$15.43
Explanation:
Following actions are required for triangular arbitrage:
Available: $ 10,000
Buy sterling pound @ 1 $ = 1.62 pounds and receive pounds 6172.84 upon conversion.
Now, sell these pounds and purchase NZ $ at the rate :
1 pound = NZ $ 2.95 and receive NZ$ 18209.87
Now, reconvert the above proceeds into US $ at the rate
1 NZ $ = $0.55 i.e sell NZ $ at this rate and receive US $ 10,015.4285
Hence profit from implementing triangular arbitrage is $10,015.43 - $10,000
= $15.43
Arbitrage refers to the prospect of earning a profit by utilizing the mispricing in two different financial markets. An arbitrageur never uses his own funds and always borrows.
Arbitrage works only in the scenario wherein the interest rate purchase parity (IRPT) does not hold good.
The strategy of arbitrage is best explained as "Buy at low price and sell at a high price".
As you get older, a Target Date Fund will adjust by "Decreasing your stocks and increasing your bonds".
<u>Option:</u> A
<u>Explanation:</u>
Goal pension plans are structured to be the investment plan, which an investor utilizes to prepare for purpose of retirement. The concept is simple in life-cycle funds or age-based funds: a fund is picked up and invest as much possible then forget until one reach respective retirement age.
Although investors who invested their assets in a retirement fund must be aware of how other retirement investments could problem their allocation of assets. For instance, if a target fund has an 80% stock and a 20% bond asset allocation, but the investor purchases a deposit certificate with 10% of their retirement assets, this essentially declines the stock allocation of the overall portfolio of the investor and leads to increment of the bond allocation.
Answer:
B) Because game theory is used to study conflict and cooperation in a competitive arena.
Explanation:
Oligopoly refers to the situation when the competition is limited which means that there are very few firms competing against each other.
Game theory: Studying strategies and actions of firms in a competitive market.
<em>Economists </em>use this study to explain oligopoly because companies have their own interests, and they often take actions which are against other companies so by studying game theory they understand the situation when companies are cooperating or are in conflict.
Answer:
Yes it is .............. ....
Answer:
The average consumption is higher in University A. than in University B
Explanation:
Marginal cost is known as the cost borne when an extra unit of output is being produced. Sunk cost is the cost once incurred cannot be recovered
The marginal cost at university A is $0 because they dont have to pay anything over and above $500. This $500 is the sunk cost for students at university A. The marginal cost at university B is $2 because they can consume only 250 pounds of food making them careful about the quantity of food they eat.
Sunk cost is not considered while making a decision, so the marginal cost of University A is $0 and that in University B is $2.
Therefore, we are concluding that the average consumption is higher in University A.