Answer:
b its b because it says he works hard and he is willing to get a good salary
Answer: I found the correct and complete question:
Which of the following statements is most CORRECT with respect to international diversification?
a) the gains from diversification may be diminished due to combined correlations accompanied by volatility in world markets. b) world markets always seem to be most uncorrelated when volatility is present. c) world markets have displayed relatively low and fixed correlations over the last five years. d) global diversification produces gain even when world markets have correlations value near one.
Explanation: The correct answer is "a) the gains from diversification may be diminished due to combined correlations accompanied by volatility in world markets.".
Global markets are generally in different phases and many of them are part of weak economies that therefore have a high degree of volatility and some are correlated so that a loss in one of these markets can lead to a loss in another and earnings can be diminished.
Answer:
1. $1,250
2. $855.95
3. $3,333.33
4. $92.59
5. $46.32
6. $671.01
Explanation:
1.
$100 per year forever
Constant Cash flow every year forever is actually a perpetuity its present value is
PV of Perpetuity = Cash flow / rate of return
PV of $100 Perpetuity = $100 / 0.08 = $1,250
2.
$100 per year for 15 years
Constant Cash flow every year for specific time period is actually a Annuity its present value is
PV of annuity = P + P [ ( 1 - ( 1 + r )^-n ) / r ] = $100 + $100 [ ( 1 - ( 1 + 0.08 )^-15 ) / 0.08 ] = $855.95
3.
$100 per year grow at 5% forever
It is a growing perpetuity and its present value will be calculated as follow
Present value of growing perpetuity = Cash flow / Rate of return - growth rate
Present value of growing perpetuity = $100 / 0.08 - 0.05 = $3,333.33
4.
$100 once at the end of this year
Present value = P ( 1 + r)^-n = $100 ( 1 + 0.08 )^-1 = $92.59
5.
$100 once after 10 years
Present value = P ( 1 + r)^-n = $100 ( 1 + 0.08 )^-10 = $46.32
6.
$100 each year for 10 years @ 8%
PV of annuity = P + P [ ( 1 - ( 1 + r )^-n ) / r ] = $100 + $100 [ ( 1 - ( 1 + 0.08 )^-10 ) / 0.08 ] = $671.01
Rationing system refers to the system of managed distribution of resources that are considered scarce. How this controls the distribution is by controlling the size of the ration. Therefore, if someone offers a landlord extra cash to make sure that the apartment would be guaranteed available is like performing business in the black market.
Answer:
<u>Performance next year
</u>
If impressive funds performed excellent in the last year, it does not mean that the same fund would be the top performer in the coming year. Performance depends upon the market and the financial position of the company in which one has invested funds.
Moreover, it also depends upon market conditions. Performance of funds generally increases when the economy is booming, and decreases when the economy is facing recession. So, before investing in any fund an investor should make a deep understanding of the prospects and opportunities to the company in terms of its financial position and growth.
