Answer:
3%
Explanation:
real interest rate ≈ nomial interest rate - inflation
ratereal interest rate ≈ 6 - 3 ≈ 3%
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Answer:
A) $102,000
Explanation:
The computation of the amount used today for preparing the operating budget is shown below:
= Contract value × forward rate
= $100,000 × $1.02
= $102,000
For computing this, we consider the forward rate and the same is multiplied with the contract value so that the correct amount can come.
All other information which is given is not relevant. Hence, ignored it
Answer:
For 100 shares, the mount that should be paid = $1766
Explanation:
We have to calculate the price of the stock in the 4th year because the investor cannot afford the stock in another 3 years.
Price of the stock = Do + g / ke - g
Dividend in current year = $1.2
Dividend after 1 year = 1.2 +2.5% (1.2)= 1.23
Dividend after 2 years = 1.23 + 2.5%(1.23) = 1.26075
Dividend after 3 years = 1.26075 + 2.5%(1.26) = 1.29227
Price in 4th year = 1.29227 + 2.5% / (0.10 - 0.025)
=1.29227 + 2.5%(1.29227)/0.075
= 17.66
Therefore, for 100 shares, the mount that should be paid = 17.66 * 100 = $1766
The financial meltdown of 2008 was in part due to <u>quants </u>demonstrating the dangers of relying too heavily on the quantitative techniques of scientific management.
<h3>How did the financial meltdown of 2008 happen?</h3>
There were several reasons for the financial meltdown that the United States saw in 2008 and one of them was the overreliance on Quants.
Quants were quantitative models that were used to decide on the financial assets to invest in. They failed to predict the risks associated with Mortgage Backed Securities and this contributed in part to the meltdown.
Find out more on the financial meltdown of 2008 at brainly.com/question/25664180
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The largest capital market security outstanding in 2019 measured by market value was cooperate stocks.
<h3>What is
cooperate stocks?</h3>
Corporate stock, can as well be described as the equity security, which serves as the instrument that is been utilized by corporations in order to raise capital.
However to purchase stock in the company, the buyer is entitled to voting rights , hence The largest capital market security outstanding in 2019 measured by market value was cooperate stocks.
Learn more about cooperate stocks at:
brainly.com/question/25818989
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