Answer:
$15.43
Explanation:
Following actions are required for triangular arbitrage:
Available: $ 10,000
Buy sterling pound @ 1 $ = 1.62 pounds and receive pounds 6172.84 upon conversion.
Now, sell these pounds and purchase NZ $ at the rate :
1 pound = NZ $ 2.95 and receive NZ$ 18209.87
Now, reconvert the above proceeds into US $ at the rate
1 NZ $ = $0.55 i.e sell NZ $ at this rate and receive US $ 10,015.4285
Hence profit from implementing triangular arbitrage is $10,015.43 - $10,000
= $15.43
Arbitrage refers to the prospect of earning a profit by utilizing the mispricing in two different financial markets. An arbitrageur never uses his own funds and always borrows.
Arbitrage works only in the scenario wherein the interest rate purchase parity (IRPT) does not hold good.
The strategy of arbitrage is best explained as "Buy at low price and sell at a high price".
Answer:
Interest groups are formed to promote the interests or concerns of their members. They are primarily concerned with influencing public policy. Because a key function is to exert pressure on political decision-makers, interest groups are sometimes referred to as 'pressure' or 'lobby' groups.
Answer:
Return from dividend yield= 2.0%
Capital gain = 16.4%
Explanation:
The return on a stock is the sum of the capital gains(loss) plus the dividends earned.
<em>Capital gain is the difference between the value of the stocks when sold and the cost of the shares when purchased.
</em>
Total shareholders Return =
(Capital gain/ loss + dividend )/purchase price × 100
The total return can be broken down into
<em>Dividend yield = Dividend/price × 100</em>
= 1.03/51.41 × 100
=2.0%
<em>Capital gain = capital gain/ price × 100</em>
= (59.82 - 51.41)/51.41 × 100 = 16.4%
Answer:
The answer is: B) In Boravia when the economy is strong, those who might otherwise go camping tend to take vacations overseas.
Explanation:
Usually a sustained economic growth would lead to an increase in the sales of high quality products. Hill and Dale sell high quality expensive products, so the only thing that could hurt their sales is that people don't go camping anymore. The only option that could lead to lower demand is that Boravia's economy is doing so well that its citizens can now afford to travel to other countries instead of camping.
Answer:
Option (B) is correct.
Explanation:
If there is an any change in the GDP of a particular nation then as a result this will shift the demand curve. Increase in GDP or an increase in the income level of the people will shift the demand curve for goods rightwards. With the higher level of income, the consumer's demand for goods increases.
Any change in the price level of the goods will affect the quantity demanded for that goods and there is a movement along a demand curve.
