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Delvig [45]
3 years ago
13

Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 5.90%, and a maturity risk premium of 0.

10% per year to maturity applies, i.e., MRP = 0.10%(t), where t is the number of years to maturity. What rate of return would you expect on a 1-year Treasury security, assuming the pure expectations theory is NOT valid? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.
Business
1 answer:
Kamila [148]3 years ago
6 0

Answer:

The answer is 9.00%

Explanation:

real risk-free rate = 3.00%

average expected future inflation rate = 5.90%

Maturity risk premium = 0.10%

The expected rate of return on a 1 year treasury security would be = the average expected future inflation rate + maturity risk premium + real risk-free rate.

= 3.00% + 5.90% + 0.10%

= 9.00%

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Answer:

Education and communication

Explanation:

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The period of time that is ideal to achieve the success of a new product is the:
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Firms often lunch products periodically. The period of time that is ideal to achieve the success of a new product is the Launch window.

<h3>What is product launch windows?</h3>

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8 0
2 years ago
When British regulators were forced to suspend the license of a flu vaccine plant in Liverpool operated by the Chiron Corporatio
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Explanation:

The answer to this question is contained in the attachment. The graph has been used to explain the solution.

A. As license got suspended price rose to p1 as quantity fell from q to q1.

So quantity decreased and price rose.

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4 0
3 years ago
Marx Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are
Misha Larkins [42]

Answer:

Effect on income= 7,500 increase

Explanation:

Giving the following information:

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5 0
3 years ago
Read 2 more answers
Merger Co. has 10 employees, each of whom earns $2,250 per month and has been employed since January 1. FICA Social Security tax
Elis [28]

Answer:

March 31

Dr. Payroll Tax Expense: 3071.25

Cr. FICA- Social security taxes payable:

1395

Cr. FICA- Medicare taxes payable:

326.25

Cr. SUTA-State unemployment taxes payable:

1215

Cr. FUTA- Federal unemployment taxes payable: 135

Explanation:

March 31

Dr. Payroll Tax Expense: 3071.25

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Cr. FICA- Medicare taxes payable:

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(5.4$×$2,250) 1215

Cr. FUTA- Federal unemployment taxes payable: (0.6%×$2,250) 135

3 0
3 years ago
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