Answer:
% in T bills = 18.92%, % in P = 81.08%
Explanation:
Portfolio return = Weighted average return
Return of portfolio P = 0.14*0.6 + 0.10*0.4
Return of portfolio P = 0.124
Let % money in T bills be x
0.11 = 0.05*x + 0.124*(1-x)
0.11 = 0.05x + 0.124 - 0.124x
0.014 = 0.074x
x = 18.92%
Hence, % in T bills = 18.92%, % in P = 81.08%
Answer: C
Explanation:
This is because although the coupon rate is devoid of federal income tax any market discount is taxed as interest income earned. So so if there is a way that they can be taxed without jeopardizing their basic Federal income tax-free status, why not? The discount can be accreted annually and tax paid, or the tax can be paid at maturity or sale date.
Answer: (B.) <u><em>If the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.</em></u>
Explanation:
A producer will only sell goods and services if the consumer is willing to pay as much as the asking price. i.e. The price that the producer is asking. For this to happen the consumer's willingness to pay must be greater than the minimum price.
Therefore , the trade will take place if <u><em>the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.</em></u>
Answer:
c. Fluffy Pillows, a U.S.-based pillow company, sells the same pillows worldwide.
Explanation:
Globalization of markets occurs when different markets in the world are integrated and merged into just one market when similar tastes, preferences, norms, convenience and values are identified which facilitate a gradual change in culture towards the use of similar commodities.
The the sale of the same pillows worldwide by the U.S.-based pillow company, Fluffy Pillows, is a good example of globalization of markets .This is because the company has been able to integrate and merger all the pillow markets in the world to just one and has therefore facilitated a gradual change in tastes and preferences for its pillow making the use of the same pillow possible worldwide.
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