1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tia_tia [17]
3 years ago
14

In the context of a bond portfolio, price risk and reinvestment rate risk exactly cancel out at a time horizon equal to _____

Business
1 answer:
vova2212 [387]3 years ago
8 0

Answer: duration of the portfolio

Explanation:

An investment time horizon which is also referred to as the investment horizon is total time that an investor is expected to hold a particular security.

In the context of a bond portfolio, price risk and reinvestment rate risk exactly cancel out at a time horizon equal to duration of the portfolio.

You might be interested in
You are the executive director of a nonprofit that runs an animal shelter and animal services, such as low-cost spay/neuter prog
KonstantinChe [14]

Answer:

I will:

b) Hold meetings with employees, volunteers, and representatives of other local shelters and listen carefully as they brainstorm ideas.

c) Honestly acknowledge the challenges the organization faces while also communicating optimism about finding the resources to fulfill your mission.

Explanation:

a) Withholding information about the organization's financial picture will not make employees to be loyal.  They are likely to find out the true position sooner than later.  If information is withheld and they find out later, they would never be loyal.  They would certainly leave the organization before financing is found for the organization sustenance.

b) Deceiving people by staying in the office and maintaining a "poker face" is not an option either.  "Poker face" cannot last forever.  One day, the true picture will show on the face.  Deception is not an art for business progress.

8 0
3 years ago
Suppose you work for a mutual fund firm. Your team is thinking of investing in Wizard’s stock. Your task is to create a report o
Zielflug [23.3K]

Answer:

<u>Investment analyst</u>

<u>Explanation:</u>

Since the team is thinking of investing in Wizard’s stock but has not yet decided it is the role of an investment analyst to prepare a detailed report on the stock’s performance and investment potential (from his personal experience) of Wizard's stock.

It is the result of the report that would <em>guide the team's decision</em> of investing or not.

6 0
3 years ago
Use the following account balances from the adjusted trial balance of Flora Wholesalers:
Semenov [28]

Answer:

Flora Wholesalers:

The accounts of Flora Wholesalers that will have the same balance at the beginning of next year as they do presently on the adjusted trial balance are:

Assets:

Cash                             $4,200

Accounts receivable      $300

Liabilities and Equity:

Accounts payable       $1,100

H. Jones, Capital       $4,400

Explanation:

a) Data and Analysis:

Adjusted Trial Balance

Account                Debit Balance    Credit Balance

Cash                             $4,200

Accounts receivable      $300

Accounts payable                                  $1,100

H. Jones, Capital                                  $4,400

H. Jones, Drawing        $900

Fees revenue                                    $13,200

Advertising expense  $8,100

Travel expense         $4,200

Shipping expense       $300

Computer

software expense     $400

Assets:

Cash                             $4,200

Accounts receivable      $300

Liabilities and Equity:

Accounts payable       $1,100

H. Jones, Capital       $4,400

b) The above assets, liabilities, and equity accounts will have the same balances at the beginning of next year as they do presently on the adjusted trial balance.  They are called permanent accounts.  Only the temporary accounts do change their balances from the adjusted trial balances to the opening balances.  The only other account that is not included above is the Retained Earnings.  This account is adjusted with the differences in the temporary accounts.

8 0
3 years ago
The difference between the basic eoq model and the production order quantity model is that
Marrrta [24]
EOQ stands for Economic Order Quantity. It<span> is the order quantity that minimizes the total holding costs and ordering costs.</span><span>
The difference between the basic EOQ model and the production order quantity model is that </span>the production order quantity model does not require the assumption of instantaneous delivery.
3 0
3 years ago
In a market with an upward sloping supply curve and a downward sloping demand curve, when the actual price must be higher than t
blondinia [14]

Answer:

excess supply

Explanation:

If price is higher than equilibrium price, quantity demanded would fall while quantity supplied would increase. This is in line with the law of demand and supply

according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

This accounts for why the supply curve is positively sloped.

6 0
3 years ago
Other questions:
  • Which of the following is a journal entry to recognize the disposal​ value? A. Manufacturing Overhead Control XXX Workminusinmin
    9·1 answer
  • Holton Company makes three products in a single facility. Data concerning these products follow:
    6·1 answer
  • The Brainchild is a store that specializes in educational toys for children. In order to increase the probability of customers v
    15·1 answer
  • Holliman Corp. has current liabilities of $407,000, a quick ratio of 1.90, inventory turnover of 4.50, and a current ratio of 3.
    12·1 answer
  • A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments c
    10·1 answer
  • The Dow Jones Industrial Average is:
    13·2 answers
  • Concord Corporation had the following transactions during 2022: 1. Issued $190000 of par value common stock for cash. 2. Recorde
    15·1 answer
  • Assume that a company sells customized sweatshirts for $15 per unit. It pays a sales commission of $5 per unit sold. The company
    9·1 answer
  • Study groups: do they work or not?
    7·1 answer
  • According to the religious economy perspective, competition through the existence of of a multitude of religions causes religiou
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!