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qaws [65]
3 years ago
9

g A decrease in the basis will __________ a long hedge and __________ a short hedger. Group of answer choices hurt; hurt hurt; b

enefit benefit; have no effect upon benefit; benefit benefit; hurt
Business
1 answer:
alekssr [168]3 years ago
7 0

Answer:

1. hurt

2. benefit

Explanation:

Given that a contract and an asset are to be converted in cash early, this implies that, basis risk exists and futures price and spot price should not move in lockstep before delivery date. However, a reduction in the basis will then hurt the long hedger and benefit the short hedger.

Hence, considering the nature of the hypothetical situation, a decrease in the basis will HURT a long hedge and BENEFIT a short hedge.

You might be interested in
The school board is trying to evaluate a new math program introduced to second-graders in five elementary schools across the cou
Komok [63]

Answer:

a) The chart tell us that all the point are between the upper and lower control limits, so the process is under control.

b) Since the process under control, the number of defects are controled and we know with a 99.3 % of certainty the average of them, so the program is  effective.

Explanation:

In order to draw a C chart we should calculate the  average test errors and the control limits of the chart

The average test errors is = (52+27+35+44+55)/5= 42.6 = c

This will be the middle line in the chart.

Then, the Upper and lower control limits are:

LCL=  c-m *sqr(c) and UCL= c+ m *sqr(c)

In this case, since we are told to contain the 99,7% of random variation, this means that we are working with a 6 sigma.

So m will be 3 (3 sigma) for the upper limit control and 3 (3 sigma) for the lower limit control:

LCL= 42.6 -3*sqr(42,6) = 23.0

UCL= 42.6+3*sqr(42,6) = 62.2

(the graphic is attached)

As we can see, al the test error values are between the control limits, so the program is undercontrol

Download xlsx
6 0
2 years ago
Countries that currently have low real GDPs per capita are destined to always have lower living standards than countries that cu
kap26 [50]

Answer:

The correct answer is the option: True.

Explanation:

To begin with, the GDP per capita is a monetary measure that establishes the value of the final goods and services produced in an economy divided by the total amount of citizens within that particular economy, therefore that it measures the amount of production that an individual inside that country produces.

Secondly, the living standards refers to the combination of factors that determinates the quality of life inside a certain economy, therefore that with higer level of living standards the life inside a country is better for most of the individuals within and lower living standards determinates that the life in a country is not so good as others. Moreover, <u><em>this type of measure is affected by the GDPs per capita</em></u> of the economy and therefore that a low GDPs per capita impacts in a low living standard and a high GDPs per capita determinates a high living standard.

5 0
2 years ago
which of the following is not one of the main concerns about putting a high priority on economic efficiency? efficient results c
strojnjashka [21]

One of the main issues with placing a high priority on economic efficiency is not that incentives for efficiency can inhibit innovation. Thus, pick the last option among the choices, <u>"</u><u>incentives for efficiency</u><u> can reduce innovation."</u>

Concerns with giving economic efficiency a high emphasis include the possibility of efficient outcomes that are unfair. One of the key issues with giving economic efficiency a high priority is the demand, which should represent ability to pay rather than just marginal benefit or gain. Thus, the first and second options cannot be the correct answer.

One of the main concerns about putting a high priority on economic efficiency is that the efficiency focuses on outcomes, but means also matter, which is why the third option cannot be the answer for this question.

Learn why efficiency is an important economic goal: brainly.com/question/22825585

#SPJ4

Which of the following is not one of the main concerns about putting a high priority on economic efficiency?

  • efficient results can be unfair.
  • demand reflects ability to pay and not solely marginal benefit.
  • efficiency focuses on outcomes, but means also matter.
  • incentives for efficiency can reduce innovation.
6 0
1 year ago
Haley is an accountant for a large hospital network. She knows that she could easily "skim" money from the organization to keep
xxMikexx [17]

Answer:

C. ​the front page test

Explanation:

The front page test -

It is an analysis method , very useful as it motivates the public to officially think about how his or her actions would look or fell to the outside world .

Same is the case with Haley , since she is aware that she can make a lot of money from the large hospital network , but she is more concern about the threat of being caught and from the reaction of the out side public .

Hence , the correct answer is  the front page test  .

7 0
3 years ago
During 2017, jackson company purchased 17,000 shares of monticello corp. Common stock for $382,500 as a passive interest investm
jekas [21]

Answer:

Explanation:

Other comprehensive income for 2017

The fair value of these shares - Common stock

=  $373,150 -  $382,500

= -$9,350

Jackson sold all of the monticello stock for $27.25 per share:

$27.25*17,000 = $463,250

Commission : ($15,000)

Net proceeds: $448,250

Acquisition     ($382,500 )

Gain on sale    $65,750

The joural entry is:

Cash                  $448,250

  • OTI (loss)                    $9,350
  • Holmes shares         $373,150
  • Gain on sale             $65,750

               

5 0
2 years ago
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