Answer: 97.99
Explanation:
The one-year forward rate that an investor would be indifferent between the U.S. and Japanese investments will be:
= Spot rate × (1 + Japanese rate / 1 + U.S rate)
= 101 × (1 + 1% / 1 + 4.1%)
= 101 × [(1 + 0.01) / (1 + 0.041)]
= 101 × (1.01/1.041)
= 101 × 0.9702209
= 97.99
Answer:
Investment in stock C is $122450.3311 rounded off to $122450.33
Explanation:
A portfolio which is equally as risky as market should have a beta equal to the beta of the market as beta is a measure of the riskiness. The beta of market is always equal to 1. The formula for beta of a portfolio is as follows:
Portfolio beta = wA * Beta A + wB * Beta B + ... + wN * Beta N
Where w represents the weight of each stock in the portfolio.
Let investment in stock C be x
1 = 146000/500000 * 0.91 + 134000/500000 * 1.36 + x/500000 * 1.51
1 = 0.26572 + 0.36448 + 1.51x / 500000
1 - 0.6302 = 1.51x / 500000
0.3698 * 500000 = 1.51x
1844900 / 1.51 = x
x = $122450.3311 rounded off to $122450.33
False for sure you don't immediately stop when you let off the brake pedal.
Answer:
Purchases she could have made with $30,000 plus the earnings foregone
Explanation:
Opportunity cost refers to the benefit obtained from the next best alternative.
Here, the opportunity cost of spending a year in the college is the purchases worth of $30,000 that she would have do it and the money income that she would have earned it.
Opportunity cost can be represented in terms of monetary and non monetary.
Answer: call the lender so as to discuss the additional repayment options
Explanation:
From the question, we are informed that Jamie has determined she is unable to pay the minimum payments on her student loan based on her current income.
The next best step for Jamie in order to avoid late payments or defaulting on her student loan is to call the lender so as to discuss the additional repayment options.
