Answer:
One would have to invest 55%
Duration of 3-year bond is 2.78
Then 5wZ + 2.78(1 - wZ) = 4
2.22wZ = 1.22
wZ = .5495
Explanation:
To properly understand the concept behind the above calculation, let us define some basic concept:
Portfolio: This can be refereed to as a phrase in finance. It refers to the collection on investment that is being held by an investment company, a financial institution such as a bank ,persons or an individual.
Zero coupon bond: A zero-coupon bond is a bond where the nominal or return on investment (ROI) value is repaid at the time of maturity. This definition usually reflects a positive time value of money.
We should also recall that the formula for zero coupon bond as:
price = M / (1 + i)^n
where: M = maturity value
i = required interest yield divided by 2
Applying this formula, we were able to arrive at the investment percentage.
Answer:
a. Increased education adds to the stock of human capital,not unlike building factories adds to the stock of physical capital.
Explanation:
Of all the option only option A is correct that is Increased education adds to the stock of human capital,not unlike building factories adds to the stock of physical capital.
The statement means that educated humans are like human capital and increase in education increase human capital. Same like building factories adds to stock of physical capital.
Answer: A monopolistic company will produce to the point where the marginal cost is equal to marginal income, which is the production point called optimal.
Marginal Income = Marginal Cost
In other words, from that point the company is not able to obtain more profit if it increases its production. Because it happens that the cost of producing one more unit is greater than the marginal income for that unit, it would be necessary to reduce the level of production because it is excessive.
As in a situation of perfect competition the company is accepting price, then it sells its product at the price given by the market, so its optimal point will be: Marginal Cost = Marginal Income = Price
Answer:
C. caretaker, nurturer
Explanation:
Generally, there are six images of managing change, which are: navigator, caretaker, coach, director, interpreter, and nurturer.
The caretaker and nurturer images have their foundations in the field of the organization theory.
The caretaker image of managing change, evaluates change and deals with issues within change. The caretaker image of managing change believes that managers are to receive change instead of initiating change.
The nurturer image of managing change ensures that change is plainly understood. It argues that no matter how little a manner of change is, it can have a very big impact in an organization
