<span>Arbitrage causes an equalization of the
rate of return of assets when assets are identical or nearly identical.
</span>
We can define arbitrage as it is the activity that generates
dependable profits by means of selling one asset and buying the same or nearly
same asset to advantage from temporary differences in fees or costs of return;
the exercise that equalizes expenses or returns on comparable financial gadgets
and hence removes further opportunities for without any risk economic advantage.
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Answer:
10.16%
Explanation:
The computation of the effective return for this investment is shown below:
Let us assume that we invested an amount in Australian dollars 100
The return is 8%
After one year, the amount is 108
Now the converting amount is 110.16 (108 × 102%)
Now the effective rate for this investment is
= 110.16 - 100
= 10.16%
Explanation:
The metric, number of inventory turns, aims to measure the movement of stock. The higher the turnover, the less time your inventory spends sitting in storage. The number of inventory turns, also known as stock turn, is calculated by taking the value of stock purchased, divided by the value of stock on hand
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