Sell the asset, which will drive down the price and cause the expected return to reach the level of the required return.
Answer:
Option c) cannot be known with perfect certainty and, although not known with perfect certainty, do allow the advisor to create more suitable portfolios for the client.
Explanation:
The indifference curves notably cannot be calculated on a precise point but the theory does allow for the invention or creation of more suitable portfolios for investors that has dissimilar levels of risk tolerance.
An Indifference curve is commonly known as a line. The line depicts or shows combinations of goods among which a consumer is indifferent. It shows also the combinations of goods that can be are affordable. In the curve,consumer tend to not like or desire one combination of goods to another combination of goods that is shown on a curve/line.
I don’t understand what is the question?
It's D. Increasing the reserve requirement on banks
Answer:
$16,393.44
Explanation:
Calculation for what would be your gain
Gain=$1,000,000/($0.61 per AUD)*$0.62 per AUD - $1,000,000
Gain=1,639,344*$0.62 per AUD - $1,000,000
Gain=$16,393.44
Therefore what would be your gain if you use $1,000,000 and execute locational arbitrage will be $16,393.44