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agasfer [191]
3 years ago
8

According to the expectations theory of the term structure the interest rate on long-term bonds will exceed the average of short

-term interest rates that people expect to occur over the life of the long-term bonds, because of their preference for short-term securities. buyers of bonds prefer short-term to long-term bonds. interest rates on bonds of different maturities move together over time. buyers require an additional incentive to hold long-term bonds.
Business
1 answer:
Fiesta28 [93]3 years ago
8 0

Answer:

c. interest rates on bonds of different maturities move together over time.

Explanation:

"When riding the yield curve, an investor will purchase bonds with maturities longer than the investment horizon and sell them at the end of the investment horizon. This strategy is used in order to profit from the normal upward slope in the yield curve caused by liquidity preferences and from the greater price fluctuations that occur at longer maturities."

Reference: Chen, James. “Riding the Yield Curve.” Investopedia, Investopedia, 25 July 2019

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An individual stockholder is entitled to receive any dividends declared on stock owned, provided the stock is held on the ex-dividend date. This is the date that is scheduled by the stock exchange. It is the date where you are entitled as the owner of a stock.
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Grace is the editor of her school newspaper. Which feature of a word processing program would she use to make her changes visibl
gogolik [260]

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8 0
3 years ago
Read 2 more answers
After listening to the talk or speech (select any one speech if you listened to more than one), write why you think the speaker
alisha [4.7K]

Answer:Hello i’m figuring this question out for you

Explanation:

5 0
3 years ago
Liberty Insurance Company processes applications forms. The average output in a week is 600 claims. Currently the staff includes
GarryVolchara [31]

Answer:

Output = 600 claims

Input = (18*6*40) + 1200 = $5520

Cost per application = $9.2 is the cost per claim

Productivity ratio = 600 / 5520 = 0.1086

Explanation:

The productivity of the application process = total weekly cost incurred / weekly application output

Here we have average output of 600 application per week

And cost we have,

Total cost = weekly staff cost + weekly cost on computer technology

Weekly staff cost = 40 hours * 6 staff * $18 per hour rate = $ 4,320

Weekly cost on computer technology = $ 1200

Total cost = $4320 + $ 1200 = $5,520

Now productivity = $ 5,520 / 600 application = $ 9.2

Or we can say that it takes $ 9.2 to process one application

(b) Here we have average output of 650 application per week

And cost we have,

Total cost = weekly staff cost + weekly cost on computer technology

Weekly staff cost = 40 hours * 5 staff * $18 per hour rate = $ 3,600 ( assumed that one staff is reduced as one application evaluator is retiring and not replaced)

weekly cost on computer technology = $ 1800

Total cost = $3,600 + $ 1800 = $5,400

Now productivity = $ 5,400 / 650 application = $ 8.31

Or we can say that it takes $ 8.31 to process one application

Percentage change in productivity ={ ($8.31 – $ 9.2 )/ $ 8.31 } * 100 = - 10.71%

Means that the cost has reduced by 10.71 % by the new process

4 0
3 years ago
There are four balls with the same size in a box. The balls are numbered 1, 2, 3 and 4. Sonya randomly picks up one ball, puts i
sveticcg [70]

Answer:

Explanation:

Here we have sampling with replacement. There are 4 x 4 = 16 out comes each with equal probability 1/16 .

The sample space being {1,2,3,4} {1,2,3,4} .

The random variable X representing the sum of the numbers on the balls has values from 2 to 8.

The other detailed steps and appropriate analysis is shown in the attached file.

7 0
3 years ago
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