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Orlov [11]
3 years ago
8

A closed-end fund starts the year with a net asset value of $20. By year-end, NAV equals $20.90. At the beginning of the year, t

he fund is selling at a 4% premium to NAV. By the end of the year, the fund is selling at a 9% discount to NAV. The fund paid year-end distributions of income and capital gains of $2.30.
What is the rate of return to an investor in the fund during the year?
Business
1 answer:
Korvikt [17]3 years ago
4 0

Answer:

2.5%

Explanation:

Price at the beginning = NAV at the beginning × (1 + premium)

= 20 × 1.04 = 20.8

Price at the end = NAV at the end × (1 - premium)

= 20.90 × 0.91 = 19.019

NAV increase by $0.90 but price decrease by 1.781

Returns = (0.91 × 20.90 - 1.04 × 20 + 2.30) ÷ 1.04 × 20

= 0.519 ÷ 1.04 × 20

= 0.0249

= 2.49%

= 2.5%

OR

Returns = change in P + distribution / start of year P

= -1.781 + 2.30 / 1.04 × 20

= 0.519/20.8

= 0.0249

=2.49%

= 2.5%

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GDP per person tells us the income and expenditure of the a. richest person in the economy. b. poorest person in the economy. c.
ale4655 [162]

Answer:

The correct answer is letter "C": average person in the economy.

Explanation:

The Gross Domestic Product (GDP) measures the level of output of a country given a certain period -by quarter and year, usually. It considers <em>government expenditures, private investments, consumer spending, </em>and <em>net exports </em>(exports minus imports).  

The GDP per capita represents the GDP per person and is calculated by dividing the GDP by the population of a country. GDP per capita represents an approximate of the expenses of an individual. Smaller richer countries such as Luxembourg or Switzerland tend to have higher GDP per capita.

8 0
3 years ago
How have embedded computers and the IoT impacted your daily life? What additional uses can you see yourself using? What security
Zigmanuir [339]

<u>NOTE:</u> Before discussing the impacts of embedded computers and the IoT, <em>first</em>, let me briefly explain what both of them are in simple words (without any complex jargon) for a better understanding.

<em>Embedded computers </em><em>are the programmable controllers (or loosely speaking, chips) designed to </em><em>perform specific or dedicated tasks</em><em> within a device.</em> They take input (from sensors etc.), process it in a predefined steps (or instructions) and give an output.

<em>The IoT, on the other hand, is the </em><em>Internet of Things</em><em>. It is the system of interconnected </em><em>things</em><em> that can communicate with one another directly over the network (internet). </em>The word Things in the IoT incorporates an array of objects ranging from devices like digital and security cameras, wearable watches, GPS navigation systems, washing machines, refrigerators to buildings and even cities.

All in all, <em>embedded computers enable the things with the automation capabilities, while the IoT empowers those things with the communication abilities.</em>

(1) Impacts of Embedded Computers and the IoT

In the current era, almost all devices around us have embedded computer(s). Not only that, many of those devices have an ability to connect to the Internet through WiFi. The impacts of embedded computers and the IoT together can easily be understood by the some of the examples, as follows:

  • Nowadays, we have smart washing machines that not only be able to rinse, wash and dry clothes <em>automatically, economically and efficiently</em>—thanks to the embedded computers—but they can also be <em>controlled remotely</em> or can also send a notification to a mobile phone by the virtue of the IoT. It saves <em>our energy</em> (by automatically washing the clothes), <em>our money </em>(by efficiently using the detergent), <em>resources</em> (by rinsing and washing the clothes with the amount of water required—water conservation) and <em>our time</em> (by being controlled remotely or by sending a notification on a mobile phone when it’s done instead of us checking up its progress every ten minutes or so). In the past, however, laundry used to be done manually, which was not only a time consuming and tiring task, but it was also an ineffective way for the resource conservation.
  • Finding a nearby cab is now in the palm of our hands. Modern cab service providers, via their mobile applications, share the location of their cabs, in which the <em>GPS navigation system</em> (consists of GPS module and the embedded computer(s), connected with the internet). Hence, <em>without any hassle</em>, a nearby cab can be arranged and also at any time. The same applies on the most, modern bus services. Before that, one had to be physically on the road to find the cab with no surety of getting one. Now, beforehand, you can book your ride.
  • Smart door locking systems and smart security cameras inside or outside homes are able to notify the authorities or to the owners in the case of intrusion, and, thus, <em>making lives and possessions safe and secure</em>. Previously, although security cameras and locking systems were there, they couldn’t communicate with other devices (like mobile phones) remotely. A person had to be physically in the house to see the camera feed or to hear the intrusion alarm.
  • Embedded computers and the IoT is <em>revolutionising the quality of life in terms of health.</em> The IoT based smart-bands or watches can continuously monitor the blood pressure and heart rate in real time through the IoT based devices with embedded computers connected with the sensors. In the case of emergency, those IoT based devices send a notification to the emergency contacts. In the past, there was no way of checking your ECG at home—let alone the question of automatically sending ECG report to the emergency contacts.

In a nutshell, embedded computers and the IoT have impacted our daily lives in a <em>meaningful and constructive way.</em>

(2) Additional Uses

Well, this part of the question cannot be answered in a generic way; therefore, let me give you my opinion on that.

I am seeing myself using the IoT based learning devices like <em>Google Nest thermostat</em>. It uses machine learning to automatically set the optimal temperature of the home.  

  • Ease: To change the temperature, there is no need to be physically there where the thermostat is installed.
  • Saving: It automatically turns off when there is no person in the home, which is a big plus for saving some extra bucks.

Furthermore, I can see myself using the smart IoT based weight machine that would warn me to stop getting out of shape based on my weight; in the case of non-compliance, it would send my weight as a post to all of my social media accounts. ;)

(3) Security or Other Risks

The <em>privacy</em> would be the major concern (and could be compromised with the usage of IoT). As in the IoT based systems, everything is connected to the internet. Therefore, all the cybersecurity risks and issues are applied on the IoT as well.

The more IoT based devices increase in number, the more the <em>complexity</em> of handling those devices would increase, which may become a bane instead of a boon to a user.

6 0
4 years ago
A​ fast-food restaurant decides to raise the price of its hamburgers. assume the firm is in a monopolistically competitive indus
Lena [83]
<span>A​ fast-food restaurant decides to raise the price of its hamburgers. assume the firm is in a monopolistically competitive industry. what will happen to the demand for its​ hamburgers? When the​ fast-food restaurant raises the price of​ hamburgers, some customers may stay and pay the higher price because they want that specific brand of hamburgers, other may go elsewhere to find them cheaper. 

When prices raise, some customers stay because they are attached to that specific company, others leave because they want a burger but for a lower price. 
</span>
3 0
3 years ago
An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? W
Ganezh [65]

Answer:

 B. No; The IRR is less than the required return by about 1.53 percent

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator:

Cash flow in year zero = -$42,000

Cash flow in year one = 15,300

Cash flow in year two = 28,400

Cash flow in year three = 7,500 

IRR = 11.47%

A project should be chosen if the IRR is greater than the required return

The IRR is less than the required return so the project should be rejected.

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

6 0
4 years ago
On December 1 of Year 1, Jones, a self-employed cash basis taxpayer, took out a loan to use in her business. The loan principal
Phoenix [80]

Answer: $6,000

Explanation:

When expenses such as this interest expense are for 12 months or more, the deduction will need to be evenly spread over the period that they apply to. As the loan was to be repaid in 24 months, the interest payment deductions should be evenly spread over 24 months.

= 12,000/24

= $500

That means that for Year 2, the relevant deduction will be for the 12 months in it;

= 500 * 12

= $6,000

4 0
3 years ago
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