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Diano4ka-milaya [45]
3 years ago
10

the nominal interest rate is 7 percent and the expected inflation rate is 4 percent. the real interest rate is

Business
1 answer:
Hoochie [10]3 years ago
6 0

Answer:

2.88%

Explanation:

According to the fisher equation :

(1 + Nominal interest ) = (1 + real interest) (1 + inflation rate)

(1.07) = (1.04) x (1 + real interest)

(1.07) / (1.04) = (1 + real interest)

1.028846

real interest rate = 2.88%

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Answer: B) False

Explanation: Management by objectives (MBO) is a type management which it's main goal is to improve the performance of an organization by means of stating the objectives which of the organisation and is usually agreed on by both the management and the employees. In the case above some objective have being put in place by Candice using MBO method, which she later discovered that some department are not complying with. This would affect the results of the MBO program she introduced, for an MBO to yield improve results it needs full cooperation from employees.

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3 years ago
15. Consider a no-load mutual fund with $400 million in assets, 50 million in debt, and 15 million shares at the start of the ye
Aliun [14]

Answer:

12.09%.

Explanation:

Calculation to determine the rate of return on the fund

First step is to calculate the beginning year NAV

Beginning year NAV = ($400 million assets - 50 million debt) / 15 million shares

Beginning year NAV = 23.33

Second step is to calculate the ending year NAV

Ending year NAV = ($500 million assets - (500*0.75% expense) - 40 million debt] / 18 million shares

Ending year NAV =[456.25/18 million shares]

Ending year NAV =25.35

Now let calculate the return using this formula

Return = (Ending NAV -beginning NAV + Capital gain + income) / Beginning NAV)

Let plug in the formula

Return = (25.35-23.33+0.30+0.50)/23.33

Return = 12.09%

Therefore the rate of return on the fund is 12.09%

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3 years ago
Movie studios use market research to reduce their risk of losses by hiring firms such as the National Research Group to conduct
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Critique the title, plot, and characters
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Classify each of the following based on the macroeconomic definitions of saving and investment.
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Answer:

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D. Yakov purchases a certificate of <u>deposit</u> at his bank : reflects deposited savings set aside from consumption - So , It is Saving

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3 years ago
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