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yanalaym [24]
3 years ago
5

Suppose the interest rate on a 1-year T-bond is 5.0% and that on a 2-year T-bond is 7.0%. Assuming the pure expectations theory

is correct, what is the market's forecast for 1-year rates 1 year from now
Business
1 answer:
Rudik [331]3 years ago
8 0

Answer:8.59%!!!!!!!!!!!!!!!!!!

Explanation:

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Is a measure of the extent to which a system achieves its goals
Norma-Jean [14]
Yeah that’s what it means
4 0
3 years ago
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli
raketka [301]

Answer:

10.4%

Explanation:

The computation of expected return on a portfolio is shown below:-

Expected return = Risk Free return + 5%Beta ( Market Return - Risk Free return)

= 5% + 0.60 × (17% - 8%)

= 5% + 5.4%

= 10.4%

Therefore for computing the expected return on a portfolio with a beta of .6 we simply applied the above formula.

The market return less risk free return is known as market risk premium

3 0
3 years ago
Hernandez Builders has a gross payroll for January amounting to $500,000. The following amounts have been withheld: Income taxes
erik [133]

Answer:

The amount of net pay recorded by Hernandez is $380,650

Explanation:

Gross Pay                      $500,000

Income Tax                      $63,000

Social security              $31,000

Medicare                      $7,250

Charitable contribution      $5,000

Union Dues                      $10,000

Unemployement Tax      $3,100

Net Pay                              $380,650

Therefore, The amount of net pay recorded by Hernandez is $380,650

6 0
3 years ago
Capico is a pharmaceutical company. The company has its factory outlets in various countries and is currently not planning on an
Harman [31]

Capico will need credit for Research and development as it should research on the new drug and also study about its competitors

6 0
4 years ago
Read 2 more answers
Starbucks CEO Howard Schultz has made sure his employees have health insurance and work in a positive environment. He could best
Leya [2.2K]

Answer: Servant leader

Explanation: Servant leader is that leader whose main goal is to serve his followers and subordinates.  All the actions that a servant leader takes is to make sure that the needs of his followers are taken care of.

This theory is sometimes used in management also we the perception that employees are the most important asset and if they are provided with proper facility their productivity will be at full, leading to development of organization.

In the given case, Starbucks CEO is taking utmost care of his employees. Hence, it is clearly a Servant leader example.

3 0
3 years ago
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