Answer:
The answer is: Buyers will bid the asset's price down until it equals the present value of income.
Explanation:
As the current asset price is greater than the present value of income, it is overpriced.
So, seller is much willing to sell at this price, however, buyers does not want to buy asset at this price as they only want to purchase it at the price equals to the present value of its income.
So, Buyers will bid the asset's price down until it equals the present value of income which is the level they are willing to buy and also at which the seller is willing to sell also.
Answer:
Price Risk, Reinvestment Risk, Investment Horizon and Longer maturity Bond.
Explanation:
- 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.
<h3>In the given scenario unemployment rate is 10%
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Explanation:
In the given problem,
Number of People who are working is 90,000
Number of People who are not working but looking and available is 10,000
Unemployment rate = Percentage of the total labor force that is unemployed but actively looking for employment and ready to work.
Unemployment rate = ((Unemployed people * 100) / (Total people in an economy (Working + Available for work)))
Unemployment rate = ((10000 * 100) / (90000+10000))
Unemployment rate = (1000000 / 100000)
Hence, Unemployment rate = 10%
COMPLETE QUESTION:
When customers have their groceries scanned at the supermarket checkout counter, data regarding product sales and coupon redemptions are collected and processed by tracking services such as IRI's InfoScan. Consumer product firms such as Procter & Gamble use data collected by IRI to allocate scarce marketing resources. Which of the following data are NOT collected at retail checkout counters?
Answer: household demographics
Explanation:
Consumer product firms such as Procter & Gamble that uses data collected by IRI to allocate scarce marketing resources don't collect consumer's data that includes household demographs because in allocating scarce marketing resources household demographs are not important data.
