Answer: The term structure of interest rates and the time to maturity are always directly related.
Explanation:
The term structure of interest rates shows the relationship between interest rates and the different maturity periods of bonds. Normally, these move in the same direction i.e., the higher the maturity period, the higher the interest rate.
This however is not a given. It might be expected for instance that interest rates might drop in future. In such a situation, the interest might reduce with a longer maturity period which would depict an inverse relationship instead of a direct one.
Answer:
With this policy throughout the long run, the insurance company will make money. A further explanation is provided below.
Explanation:
According to the given values in the question,
The expected value will be:
⇒ 
By putting all the given values, we get
⇒ 
⇒ 
⇒ 
($)
As we can see that,
Thus the above is the correct answer.
Answer:
the standard deviation of demand during the 4-day lead time is 30
Explanation:
the computation of the standard deviation of demand during the 4-day lead time is given below;
= Sqrt(Lead time) × Std deviation daily demand
= Sqrt(4) × 15
=2 × 15
= 30
Hence, the standard deviation of demand during the 4-day lead time is 30
Answer:
positioning strategy.
Explanation:
Developing a marketing strategy aimed at influencing how product is perceived in comparison to competiton. It includes four steps which are:
1. Analyse
2. Competitive advantage
3. Marketing mix
4. Evaluate
