Answer:
Find answers below.
Explanation:
Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits. This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions.
Price risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
Reinvestment risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues. Which type of risk is more relevant to an investor depends on the investor's investment horizon, which is the period of time an investor plans to hold a particular investment. Longer maturity bonds have high price risk but low reinvestment risk, while higher coupon bonds have a higher level of reinvestment risk and a lower level of price risk. To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called duration, which is the weighted average of the time it takes to receive each of the bond's cash flows.
The bonds which would have the largest duration is a 10 year - zero coupon bond.
Answer:
A. plus the net outflow of capital abroad.
Explanation:
National saving of any nation is derived from the people´s savings from the total earning after paying for all nessesities, taxes and government purchase. We can further include net export to the total saving, which is export minus import. We know value of net exports must be equal to the value of net capital outflow. Thus, national saving equals domestic investment and the net outflow of capital abroad.
S= Y-C-G+NX
Where S = saving, Y= Income, C= current consumption, G= Governement purchase, NX= Net export.
Answer:
1. A business name is your business's legal name. It is the official name of the person or entity that owns a company. And, it's the name you use on your government forms and business paperwork.
2. Review common business structures
Sole proprietorship. A sole proprietorship is easy to form and gives you complete control of your business. ...
Partnership. Partnerships are the simplest structure for two or more people to own a business together. ...
Limited liability company (LLC) ...
Corporation. ...
Cooperative.
3. A product is a tangible item that is put on the market for acquisition, attention, or consumption, while a service is an intangible item, which arises from the output of one or more individuals.
Declawing a cat can cost at least $300 and is advisable if the cat is destroying furniture which cats can do if it is soft material that its' paws can penetrate but if furniture is bought that is smooth and hard to penetrate then it may not be necessary to do it . It is good to have a good scratching post for the cat and also use catnip to attract it to the post.
Answer:
1.075
Explanation:
The computation of the profitability index is shown below:
= Net Present value ÷ Required investment
where,
Net Present value
= Annual cash inflows × PVIFA for 8 years at 12%
= $92,000 × 4.9676
= $457,019.2
0
Refer to the PVIFA table
And, the required investment is $425,000
So, the profitability index is
= $457,019.2
0 ÷ $425,000
= 1.075
