Answer:
b. 13.63%
Explanation:
Multiple choice <em>"(a) 1.01% (b) 1.37% (c) 0.50% (d) -0.50%"</em>
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Spot rate = future rate /(1 + interest rate differential)
1.0796 = (1.0796 + 0.007356)/(1 + interest rate differential)
1.0796 = 1.086956 / (1 + interest rate differential)
1.0796 * (1 + interest rate differential) = 1.086956
(1 + interest rate differential) = 1.086956/1.0796
(1 + interest rate differential) = 1.006813634679511
Interest rate differential = 1.006813634679511 - 1
Interest rate differential = 0.006813634679511
interest rate differential = 0.006813634679511*2
interest rate differential = 0.013627269359022
interest rate differential = 13.63%
So, the difference between interest rate of Europe and US is 13.63%.
Answer:
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
Explanation:
Given;
Insurance policy was purchased on July 10 to run for 3 years.
Cost of policy = $72,000
Start date is August 1st. As at 31 December, the policy should have been amortized for 5 months (August to December)
Monthly depreciation = $72,000/(3 × 12)
= $2,000
Total amortization between August and December = 5 × $2,000
= $10,000
Journal entries
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
Answer:
.66; .34
Explanation:
Calculation of weight of the stock and weight of the risk free asset
stock expected return = 17.3%
stock beta value = 1.48
risk free asset beta value is = 0
risk free asset return = 4.6
portfolio beta is = 0.98
let taken weight of the stock is X
so weight of the risk free asset is = 1-X
portfolio beta = stock weight*beta+riskfree weight*beta
0.98 = X*1.48+(1-X)*0
0.98= 1.48X+0
1.48X= 0.98
X = 0.66
66%
weight of the risk free asset is = 1-0.66
= 0.34
= 34%
Answer:
It means that sides market for NFL football betting which is semi strong form of efficient market hypothesis cannot utilize technical or fundamental analysis to earn higher gains since stocks have already adjusted with latest football information release.
Explanation:
Semi strong form of market is an aspect of Efficient Market Hypothesis which provides that security prices adjust rapidly to available public information.
It states that changes in stock prices is an outcome of release of new public information. Based on the information that is made available, investors actions are based, which ultimately leads to changes in prices.
Semi strong form follows the belief that since all public information is used while arriving at a stock's current price, investors cannot utilize technical or fundamental analysis to earn higher returns.
Answer:
A. percentage of the working age population that is not employed.
D. understates the true degree of joblessness in the economy.
B. does not affect the employment-population ratio.
Explanation:
The employment population is the population which is not employed out of the total population willing to be employed.
Thus, in a population there are people who want to work, and are working and people who want to work, but cannot find work.
When a person who is unemployed drops out of the total labor force then the unemployment rate, will be understated which will clearly, not show the fair state of joblessness in the economy as the person without job is not included in labor force.
As the employment ratio is based on population and not on labor force the dropping of unemployed person from the labor force will not affect the employment ratio.