Answer:
HPR = holding period Return is 20%
Explanation:
- Given original Investment = $100
- Short sale proceeds for 1 share = $100
- Investment made of $100 + short sale proceeds of $100 at 5% YTM.
- So Maturity Value = Investment x (1+YTM)^number of years
- = 200 x (1 + 0.05)^1 = 210
- Therefore, In order to cover Short sale of 1 share, we will have to buy 1 share at a closing value of $90
- As such, holding period Return = (Investment proceeds from ZCB - Buying price of stock - Investment amount) / Investment Amount
- = (210 - 90 - 100) / 100 = 0.2 or 20%
- Hence, HPR = holding period Return is 20%
Answer:
organizations that are in the middle of a series of organizations that distribute goods from producers to consumers.
Explanation:
Intermediaries can be described as middlemen. They enhance the flow of goods and services between the producer and the consumer.
They are organizations that are in the middle of a series of organizations that distribute goods from producers to consumers.
Types of Intermediaries
- agents
- wholesalers
- distributors
- retailers.
Advantages of Intermediaries
- They increase efficiency of the distribution process
- they provide logistics support
Disadvantage of Intermediaries
they can increase the cost of a good
Average of all forecast errors is 0 a company wants to use a regression analysis to forecasts the demand for the next quarter.
The method <span>of evaluating a capital investment project that use cash flows as a measurement basis are: </span><span>Payback period, internal rate of return, and net present value.
- PAyback period, used to determine how much asset is back after the initial saving
- internal rate of return, Used to measure potential profit from an investment
- Net present value, used to determine the worth of all company's assets</span>
