Answer:
option (b) 12.77 percent
Explanation:
Data provided in the question:
Expected return = 15.72% = 0.1572
Beta = 1.33
Risk free rate = 3.82% = 0.0382
Inflation rate = 2.95% = 0.0295
Now,
Expected return = Risk free rate + Beta × (Expected market return - Risk free rate)
or
0.1572 = 0.0382 + 1.33 × ( Expected market return - 0.0382 )
or
0.119 = 1.33 × ( Expected market return - 0.0382 )
or
Expected market return - 0.0382 = 0.08947
or
Expected market return = 0.12767
or
Expected market return = 0.12767 × 100% = 12.767% ≈ 12.77%
option (b) 12.77 percent
Answer:
the total surplus will be: 275 + 32.5 = 307.5
Explanation:
At purchase, the consumer surplus will be the difference between the amount willing to pay for the book and the book selling price:
500 - 225 = 275
Then, the selling surplus will be the difference between the amount you are willing to sold and the saelling price:
225 x 50% = 112.5
112.5 - 70 = 32.5
the total surplus will be: 275 + 32.5 = 307.5
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".
Answer:
the average daus worked ny employees is C. 302.2 < < 318.4
Explanation:
Hi, since we need the 90% confidence interval, we have to cut 5% in both sides of the normal distribution graph (which accounts for 100%), therefore, the formula to use for both, the upper and lower limit of the interval is as follows.
Where 1.65 is the Z-score for the probability=0.05 and -1.65 is the Z-score for the probability = 95%
So, things should look like this
Therefore, the interval is 302.4 << 318.2 and since it is close to answer C. we selected answer C.
Best of luck.
C, interpersonal skills.
It seems to be the answer because team-work would add efficiency.