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Stella [2.4K]
4 years ago
7

An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has b

een warned not to ignore the cross-product between the real rate and inflation. A 6-year security with no maturity, default, or liquidity risk has a yield of 20.84%. If the real risk-free rate is 6%, what average rate of inflation is expected in this country over the next 6 years?
Business
1 answer:
irakobra [83]4 years ago
8 0
Thank you for posting your question here at brainly. The real risk-free rate is 6%, what average rate of inflation is expected in this country over the next 6 years is 1.266.  <span>If the risk-free rate is 5% and expected inflation rate is 16%, that would result in a total rate of 21%. Then divide 1 by 0.79 = 1.266. Therefore, my answer is a yield of 26.6% is required.</span>
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The primary difference between the capital adequacy ratio (car) and the leverage ratio (lr) is?
Ainat [17]

The capital adequacy ratio (CAR) calculates a bank's available capital as a proportion of its risk-weighted credit exposures. The capital adequacy ratio, is commonly known as the capital-to-risk weighted assets ratio (CRAR). A leverage ratio is any of a number of financial metrics that examine the amount of capital that is borrowed (loans).

Learn more about capital adequacy Ratio (CAR ) And leverage Ratio (LR) here:

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5 0
2 years ago
Jenna purchased 500 shares of XYZ stock for $10 per share. The stock paid the following dividends: Year 1: $0.25 per share Year
aleksley [76]

Based on the price of the stock and the dividend over the years, the time-weighted return of XYZ stock is 16.83%.

<h3>What is the time-weighted return of XYZ stock?</h3><h3 />

In this case, the Time weighted return can will be the same as the IRR so the IRR function on a spreadsheet can be used to find the return.

Year 0 return = -$10 per share

Year 1 = $0.25

Year 2 = $0.27

Year 3 = (0.29 + 15) = $15.29.

Time weighted return will be 16.83% as shown in the attachment.

Find out more on Weighted return at brainly.com/question/15885163.

8 0
2 years ago
A leader, such as Bill Gates of Microsoft, who can inspire followers above their own self-interests and can have a profound effe
arsen [322]

Answer:

Transformational leadership

Explanation:

Transformational leadership is an authority style that can rouse positive changes in the individuals who pursue. Transformational pioneers are commonly vigorous, excited, and energetic. Not exclusively are these pioneers concerned and associated with the procedure; they are likewise centred on helping each individual from the gathering prevail as well. Through the quality of their vision and character, transformational pioneers can motivate supporters to change desires, judgements, and inspirations to move in the direction of shared objectives.

8 0
3 years ago
Which of the following statements are true? A direct cost is sometimes referred to as a common cost. A regional sales manager's
RoseWind [281]

Answer:

The correct answers are the following options: A regional sales manager's salary is a direct cost of the regional office in which the sales manager works - A direct cost can be easily and conveniently traced to a specific cost object.

Explanation:

On the one hand, the name of <em>"direct costs"</em> is refered to the ones that would be directly related to a cost object, therefore that these costs are easily recognizable to the person who manages the costs due to the fact that those will be the ones that are strictly referable to the object.

On the other hand, the <em>"indirect costs"</em> are the ones that have the characteristics of being the oppositive of the direct costs. Therefore that these type of costs are the ones that would not be easily referable to a cost object.

5 0
4 years ago
In an oligopoly, the total output produced in the market is
N76 [4]

Answer:

Letter c is correct. <em><u>Higher than the total output that would be produced if the market were a monopoly but lower than the total output that would be produced if the market were perfectly competitive.</u></em>

Explanation:

An oligopoly is a market situation that occurs when there are a small number of companies that dominate the supply of a particular product or service in a sector of the economy. It can occur naturally or structurally, and the purpose of this market configuration is to have greater competition and price control, so that there is greater profitability.

This scenario is characterized by imperfect competition, which is similar to the monopoly market, but in oligopoly production is higher than in monopoly, because there is more than one supplier of the same product. And production in an oligopoly is lower than in a perfectly competitive scenario where there are many suppliers and none have the ability to affect market price.

3 0
3 years ago
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