Answer:
$16,393.44
Explanation:
Calculation for what would be your gain
Gain=$1,000,000/($0.61 per AUD)*$0.62 per AUD - $1,000,000
Gain=1,639,344*$0.62 per AUD - $1,000,000
Gain=$16,393.44
Therefore what would be your gain if you use $1,000,000 and execute locational arbitrage will be $16,393.44
Answer:
Stock A will be preferable for the risk averse Investors.
Explanation:
The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.
(Special comments:
It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)
I bought an apartment with my boyfriend last year because we had been dating for 4 years and he proposed. In order to prepare, we saved up our money, asked the bank for their opinion on the best coarse of action financially, and we tried to decide how much of our savings we should use without being irresponsible. (This is just an example. I am 15 and will be forever alone but yea this is what I would do anyways)
Answer:
D: Your money has more time to grow.
Explanation:
If you use process of elimination your age doesn't matter on discounts or rates. If you invest when you're younger you have more time to learn about what you're investing in and more time for your money to grow.
