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2 years ago

15

If the interest rate on cds increases from 5% to 10%, the opportunity cost of holding money will ______ and the quantity demande

d of money will ______.

1 answer:

victus00 [196]2 years ago

5 0

Increase and decrease, because people want to hold onto the more valuable cd for investment purposes. Please mark Brainliest!!!

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Asset A and B have expected returns of 5% and 3% per year respectively. Their annual volatilities are both 20% and the correlati

Novay_Z [31]

Answer:

1. Weight of A=0.5, Weight of B= 0.5

2. Asset A has the highest shape ratio. The weight of A and B in the optimal risky portfolio that has the highest shape ratio is:

Weight of A= 0.105, Weight of B= 0.895

Explanation:

Expected return of Asset A= 5%Expected return of Asset A= 5%

Expected return of Asset B= 3%

Annual volatilities of Asset A= 20%

Annual votalities of Asset B= 20%

1. Correlation coefficient = 30% = 0.3 < 1

Risk Free Rate = 1% =0.01

1. Weight of A and B in portfolio with minimal risk is:

Weight of A= β^2B - Cov (XAXB) /β^2A + β^2B - 2Cov (XAXB)

Therefore,

CovXAXB = PAB (Volatility of A) (Volatility of B)

= 0.3 × 0.2 × 0.2

= 0.012

Hence,

Weight of A= (0.2)^2 - 0.012 / (0.2)^2 + (0.2)^2 - 2(0.012)

Weight of A= 0.04 - 0.012 / 0.04 + 0.04 - 0.024

= 0.028/ 0.08 - 0.024

= 0.028/ 0.056

=0.5

Weight of A = 0.5

Weight of B= 1 - Weight of A

Weight of B= 1 - 0.5

Weight of B= 0.5

2. Shape ratio of A= RA - Rf / β

= 0.05 - 0.01 / 2

= 0.04/2

= 0.02 =20%

Shape ratio of B= RB - Rf / β

= 0.03 - 0.01/ 2

0.02 / 2

=0.01 = 10%

So, Asset A has the highest shape ratio

Cov (XAXB) = PAB (Volatility of A) (Volatility of B)

= 0.03 × 0.2 × 0.1

= 0.006

Weight of A= β^2B - Cov (XAXB) /β^2A + β^2B - 2Cov (XAXB)

Weight of A = (0.1)^2 - 0.006 / (0.2)^2 + (0.1)^2 - 2(0.006)

= 0.01 - 0.006 / 0.04 +0.01 - 0.012

= 0.004/ 0.05 - 0.012

= 0.004/ 0.038

= 0.105

Weight of A = 0.105

Weight of B= 1 - 0.105

Weight of B= 0.895

3 0

3 years ago

actionow and becca enter into an oral contract in which becca agrees to work on a project for actionow’s living opportunities ce

JulsSmile [24]

Based on the fact that ActioNOW and Becca entered into an oral contract where Becca agrees to work on a project for ActioNOW for eighteen months, the enforcers of this contract are d. none of the choices.

<h3>Who can enforce this contract?</h3>

This transaction between Becca and ActioNOW was an oral contract which means that it falls under the Statute of Frauds. However, for an oral contract to be enforceable under this Statute, the goods or services exchanged have to be less then $500 in value.

The services or goods also have to be less than 1 year in duration. Because Becca and ActioNow agreed for a contract of 18 months which is more than a year, this contract is not enforceable under the Statute of Frauds and so the government cannot enforce this contract.

Options include:

a. ActioNOW.
b. Becca.
c. any third party, such as ActioNOW’s clients.
d. none of the choices

Find out more on the Statute of Frauds at brainly.com/question/14854791

#SPJ1

8 0

1 year ago

Which of the following phrases BEST defines the word import?

Lubov Fominskaja [6]

<span>to obtain a product from another country </span>

8 0

3 years ago

Read 2 more answers

Kasapreko Company Limited is a wholly Ghanaian-owned company with branches in Nigeria, South Africa and Germany. With relevant e

SSSSS [86.1K]

Answer:

The definition of the problem is listed in the explanation segment below.

Explanation:

The diverse worldview is referred to as one of the OLI systems, in which OLI refers to possession, place, and internalization.

Organizations such as Kasapreko have been looking for potential customers and have used distant markets such as Nigeria, Africa as well as Germany as either a path to expanding industry with a large portfolio and selling more revenue-generating products. However, companies see strategies to increase expertise by allowing efficiencies of scale. Concurrently, the statistics that suggest that the company is searching for options to achieve scale economies as well as minimize costs per unit by that competence by entering various markets.
Shareholding benefit talks for focus points which represent the unique upper hand of the firm's ideas by engaging in FDI. The Kasapreko company has planned R&D to produce experimental data informative, natural-based blended beverages in Ghana and seems to be unprecedented.

<u>Advantage of Location:</u>

The corporation has its leading headquarters throughout Ghana which is suitable for trading platforms such as South Africa and Nigeria as well as, in addition to using the development of digital technology/data innovation, such as the internet stock management framework, provides the organization an odd phenomenon through which to come to terms with coordination employment.

<u>Advantage of Internationalization:</u>

It has been allowed the company to create an integrated quality assurance system and an object development facility in there and, in turn, to carry out its special bespoke bottles and caps.

8 0

3 years ago

The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches

vlada-n [284]

Answer:

0.89 orders per minute

Explanation:

As per the data given in the question,

Batch size = 4 orders

Here, process 1 = cooking

process 2 = Bagging and payment accepting

Time taken to complete process 1 by cooking a batch of 4 orders

= 3 × 1 + 0.5 × 3

= 4.5 minutes

Time taken to complete process 2 by Bagging and payment accepting of 4 orders

= 0.80 × 4

= 3.2 minutes

Time in process 1 is greater than time taken in process 2

Since, process 1 is bottleneck operation So, it will decide the capacity of project. therefore,

Overall capacity = 4.5 minutes for 4 orders

Therefore number of orders = 4 ÷ 4.5

= 0.89 orders per minute

Hence, Process capacity = 0.89 orders per minute

8 0

3 years ago