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kupik [55]
3 years ago
9

A bank money manager estimates that the bank will experience a liquidity deficit of $400 million with a probability of 10 percen

t, a liquidity deficit of $900 million with a probability of 20 percent, a liquidity surplus of $600 million with a probability of 30 percent, and a liquidity surplus of $1,200 with a probability of 40 percent over the next month. What is this bank's expected liquidity deficit or surplus next month? A. $880 million liquidity surplus B. $440 million liquidity deficit C. $440 million liquidity surplus D. $880 million liquidity deficit E. None of the options is correct
how is the answer C how do we solve it?
Business
1 answer:
Vikki [24]3 years ago
7 0

Answer:

C. $440 million liquidity surplus

Explanation:

The computation of the expected liquidity deficit or surplus is shown below:

= Liquidity deficit × probability + liquidity deficit × probability + liquidity surplus × probability + liquidity surplus × probability

= -$400 million × 10% + -$900 million × 20% + $600 million × 30% + $1,200 million × 40%

= -$40 million - $180 million + $180 million + $480 million

= $440 million liquidity surplus

The surplus amount displayed in positive amount whereas deficit amount displayed in negative amount

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Explanation:

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Psychographic analysis and behavioral analyses are examples of methods of market segmentation positioning.

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Nookie1986 [14]

Answer:

The Answer is as follows;

Explanation:

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The market price is not relevant for company's cost of financing. Therefore we have taken dividend payable on face value and transaction costs of issue for purpose of determination of financing cost.

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Explanation:

The Committee of Sponsoring Organizations (<em>COSO</em>) is an international acknowledgment organism where basic risk regulating frameworks and accomplishment in organizational internal control matters are established. When it comes to Enterprise Risk Management (<em>ERM</em>) the committee proposes key principles and concepts for clear guidance.

Creating value for society is not included in one of the core objectives of the COSO ERM.

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