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
tatyana61 [14]
3 years ago
8

The expectations theory of the term structure of interest rates states that forward rates are determined by investors' expectati

ons of future interest rates. All of the options are correct. yields on long- and short-maturity bonds are determined by the supply and demand for the securities. forward rates exceed the expected future interest rates. None of the options are correct.
Business
1 answer:
ra1l [238]3 years ago
7 0

Answer:

forward rates are determined by investors' expectations of future interest rates.

Explanation:

The expectations theory of the term structure of interest rates states that forward rates are determined by investors' expectations of future interest rates. It suggests that the predicted holding period rate of return of a bond of "x" number of time is equal to the short-term interest rate irrespective of its maturity.

The Expectations theory gives us the opportunity to predict the future outcome of short-term interest rates based on current long-term interest rates.

You might be interested in
Carmela was promoted to a management position at work but was not fully prepared for the number of new responsibilities in the n
Sophie [7]

Answer:

EXPLAINING STRESSFUL EVENTS BY ATTRIBUTING THEM TO A TEMPORARY SITUATION.

Explanation:

Attribution theory deals with how the social perceiver uses information to arrive at causal explanations for events. It examines what information is gathered and how it is combined to form a causal judgment.

Explanatory style is the characteristic, habitual way individuals explain the causes of good and bad events they experience.

Stressful events can either be good or bad. People may attribute stressful events to factors that are either temporary or permanent and specific or universal.

Carmela's thought means she is explaining her stressful work (event) by attributing it to a temporary situation since she thinks she will get the hang of it in a few months.

Therefore, an example of the explanatory style is EXPLAINING STRESSFUL EVENTS BY ATTRIBUTING THEM TO TEMPORARY EVENTS.

4 0
3 years ago
A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the yea
zysi [14]

Answer:

c. $24,850

Explanation:

A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the year) Fair value (end of the year) Stock A (100 shares) $50 per share $45 $51 Stock B (200 shares) $40 per share $41 $49 ; Bonds Cost $9,000 Fair value (beginning of the year) Fair value (end of the year)$10,000 $9,950

The amount that should be the total value of investments reported in the year-end statement of financial position? will be the fair value of the investments at the end of the year becaue investments by financial reporting standards are carried at fair values unlike physical assets carried at costs

Stock A = 100 Shares x fair value end of year of $51 = 5,100

Stock B = 200 Shares x fair value end of year of $49 = 9,800

Bond @ Fair value end of year...........................................= 9,950

Total............................................................................................$24,850

5 0
3 years ago
Assume University Athletic Pharoah Club sells T-shirts for $30 and anticipates selling 6,700 shirts during football season. The
den301095 [7]

The preparation of the University Athletic Pharaoh Club's Income Statement in the contribution margin format is as follows:

University Athletic Pharaoh Club

<h3>Income Statement</h3>

For the football season

Sales Revenue                $201,000

Variable cost of sales        155,574

Contribution margin       $45,426

Fixed Costs:

Selling and administrative 33,526

Net Income                       $11,900

<h3>Data and Calculations:</h3>

Sales revenue = $201,000 ($30 x 6,700)

Cost of sales = $155,574 ($23.22 x 6,700)

Fixed Costs = $35,000

Sales commission = $1,474 ($0.22 x 6,700)

Remaining fixed costs = $33,526

Thus, the income statement of University Athletic Pharaoh Club for the football season shows a net income of $11,900.

Learn more about Contribution-Margin Income Statement at brainly.com/question/24962994

#SPJ1

3 0
2 years ago
Which of the following could result in the termination and liquidation of a partnership?1) Partners are incompatible and choose
Natalka [10]

Answer:

E) 1, 2, and 3

Explanation:

A partnership is a very flexible business which is very easy to set up but has some disadvantages also and they include:

  1. partners have unlimited liability.- if losses are expected to continue, then the partners will probably decide to liquidate the partnership.
  2. risks of disagreements between the partners.- if the partners are incompatible and cannot agree upon the decisions that need to be made, the partnership will probably be liquidated
  3. if the partners decide to leave because they retire then the partnership will probably have to be liquidated unless a new partner replaces the one that leaves or the other partners buy his/her share of the partnership.
8 0
3 years ago
stock a has an expected return of 20 and stock b has an expected return of 5. what is the expected return on a portfolio this co
OlgaM077 [116]

Answer:

15.05%

Explanation:

Calculation to determine the expected return on a portfolio

Using this formula

Expected return = (Return on stock A * Percentage invested in stock A) + ( Return on Stock B * Percentage invested in Stock B)

Let plug in the formula

Expected return= (20% * 67%) + (5% * 33%)

Expected return= 13.4% + 1.65%

Expected return= 15.05%

Therefore the expected return on a portfolio is 15.05%

6 0
3 years ago
Other questions:
  • . A firm begins the year with a Book Value of $10 million. During the year it generates $5 million in net profits. It paid $1 mi
    7·1 answer
  • The set of business activities that add value to the end product is referred to as __________, in which information flows throug
    13·1 answer
  • The action by Massachusetts farmers who were protesting debt collections, foreclosures, and taxes and which raised concern among
    8·2 answers
  • A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be
    15·1 answer
  • What term describes a guardrail system, a positioning system, and a personal fall arrest system?
    8·1 answer
  • Under process model, organizational effectiveness is portrayed by having internal conflict where information flows easily both h
    11·1 answer
  • When is it okay to time out<br> someone? In Twitch
    7·1 answer
  • eating small amounts of sweet desserts can satisfy one's urge or craving for healthier food. true or false?​
    6·1 answer
  • The definition of entrepreneurship holds the promise of...<br>​
    15·1 answer
  • Why do you think organizations tend to focus on the creation of one type of value but not both?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!