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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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The control systems used in international firms include: personal, bureaucratic, output and Blank______.
Taya2010 [7]

The control systems used in international firms are;

  • personal
  • bureaucratic
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<h3>What is the control system?</h3>

A control system serves as set of mechanical or personal devices that are used in regulating other other devices or systems.

In international firms this control system helps to monitor the ethics, standards that are required by the international firm in relation with other firms across the globe.

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6 0
2 years ago
A point M on a segment with endpoints (-1, 1) and ( 7, 7) partitions the segment in a 3:5 ratio. Find M. You must show all work
HACTEHA [7]

The coordinates of point M after the partition is (2, 3.25).

<h3>What are coordinates and how to determine coordinates?</h3>
  • A coordinate system in geometry is a system that uses one or more integers, or coordinates, to define the position of points or other geometric components on a manifold such as Euclidean space.

We have:

  • Endpoints = (-1,1) and (7,7)
  • Ratio, m : n = 3 : 5

The coordinates of point M is then calculated using:

M=\frac{1}{m+n} *(mx_{2}+nx_{1} , my_{2} +ny_{1} )

So, we have:

M=\frac{1}{3+5} * (3*7+5*-1,3*7+5*1)

Evaluate the sum and the product:

M=\frac{1}{8} *(16,26)

Evaluate the product:

M=(2,3.25)

The coordinates of point M is (2, 3.25)

Therefore, the coordinates of point M after the partition is (2, 3.25).

Know more about coordinates here:

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4 0
2 years ago
Rao Construction recently reported $28.00 million of sales, $12.60 million of operating costs other than depreciation, and $3.00
stich3 [128]

Answer:

a. $12.40

Explanation:

EBIT stands for earnings before interest and taxes; therefore, interest and taxes rates should not be considered. The EBIT is determined as the amount from sales deducted by operating costs and depreciation. The EBIT is:

EBIT = \$28.00-\$12.60-\$3.00\\EBIT=\$12.40

The answer is alternative a. $12.40.

6 0
3 years ago
The particular market segment your company is trying to sell your products or services to is your _________
dolphi86 [110]

Answer:

Target Market

Explanation:

The target market is the people that a business has identified as potential buyers of its products and services. It is the group of customers that a business targets with its advertising messages. Therefore, the target market is that group of customers that a business expects to buy its products. A target market consists of existing and potential customers.

4 0
3 years ago
Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 220.00; Variable expense
dalvyx [7]

Answer:

The answer is d. 3911

Explanation:

First, we obtain the contribution margin, wih the formula Selling price per unit minus variable expense per unit. So, the contribution margin per unit is 220 - 97.5 = 122.5.

Next, knowing how much each unit contributes to cover the fixed costs, we can calculate how many units do we need to pay the fixed expenses. This is called "break even point" or BEP. The formula is Fixed Expenses / Contribution margin per unit. So, the BEP is 448,090 / 122.5 = 3,657.88.

With those two things, the final task is to calculate how many units we need, covered the fixed expenses, to achieve the company target profit. The formula is Target profit / Contribution margin per unit. So, the number of units is 31,000 / 122.5 = 253.06.

Finally, we add these two number, to obtain the total units needed to cover the fixed costs and achieve the target profit: 3,657.88 + 253.06 = 3,910.64 = 3,911

7 0
3 years ago
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