Complete Question:
An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is:
Group of answer choices
A) the safety of the principal invested.
B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
C) the yield is always higher than mortgage yields.
D) the yield is always higher than bond yields.
Answer:
B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
Explanation:
An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
Generally, common stocks are considered by financial experts or broker-dealers to be a suitable type of investment of variable annuities because the prices of common stocks in the market are not fixed and as such they are affected by economical changes such as inflation or recession.
Answer: $6.00
Explanation:
From the question, we can see that the productivity in the United States is (45/9) = 5 times higher than that of Mexico.
Therefore, the wages in Mexico should be 5 times lower than the wages paid to the workers in the United States. This will be:
= $30.00 / 5
= $6.00
Therefore, in order for the firm to reduce its wage cost per unit of output by moving to Mexico, the wages in Mexico must be below $6.00 per hour.
Answer:
The strategy only pays off when the stock price in August is between $44.25 and $55.75. Thus, the answer is b.
Explanation:
The investor net gain on premium from option is $1.25 + $4.5 = $5.75.
The investor has to obligation to buy at $50 and obligation to sell at $50 in August.
As a result, Investor paid-off is described according to the spot price, denoted as x, of Hug-Packing in August as below:
Spot price <$50: 5.75 - (50 - x) = x - 44.25
Spot price = $50: $5.75
Spot price > $50 : 5.75 - ( x -50) = 55.75 - x
Thus, the strategy will pay off only when:
(x - 44.25) > 0 and (55.75 - x) <0 or x is between $44.25 and $55.75.
Thus, the answer is b.
Answer:
The minimum monthly payment is $220
Explanation:
The minimum monthly payment is computed as 4% of outstanding balance,hence the minimum payments is computed thus:
4%*$5500=$220
Credit cards are issued financial institutions to their customers to enable make expenditure in advance.The funds being spent is not in the customer's account unlike debit cards where customer's account must have been pre-funded .
On settling the amount owed to the bank,the customer pays interest on the amount borrowed such as the 4% charged in this scenario.
The interest rates charged are most times at single rate.
