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scoundrel [369]
2 years ago
15

How did speculative investing weaken the stability of the stock market?

Business
1 answer:
tiny-mole [99]2 years ago
7 0
<span>Heavy speculation is a bad idea in any market since it has a tendency to inflate prices to unrealistic levels. That is basically what many investors prior to the Great Depression did when they thought the market would keep going higher and higher. They borrowed money, sold their houses, etc.. to buy into the stock market thanks to that kind of speculation without even considering the underlying reasons for why the market is there in the first place.</span>
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Marcus can afford a monthly mortgage payment of $900. If he is eligible for a 30-year, 5% mortgage (where the mortgage factor is
tigry1 [53]

Answer:

option (c)  $167,597.77

Explanation:

Data provided in the question:

Monthly mortgage payment = $900

Duration of loan, n = 30 years = 360 months

Interest rate = 5%

Monthly rate of interest = 5% ÷ 12 = 0.4167% = 0.004167

Now,

Mortgage loan can he afford

= Monthly mortgage payment × [ (1 - ((1 + r)ⁿ)⁻¹ ) ÷ r ]

= $900 × [ (1 - ((1 + 0.004167)³⁶⁰)⁻¹ ) ÷ 0.05 ]

= $167,597.77

Hence,

The answer is option (c)  $167,597.77

7 0
2 years ago
A buyer and a seller are disputing a contract for sale and purchase. They agree to submit the matter to a third party who will m
leonid [27]

Answer:

Arbitration

Explanation:

Based on the information provided within the question it can be said that this type of settlement is called Arbitration. This term refers to a form of resolving disputes outside of the court system by bringing in a third party who will render an "arbitration award" that will make a binding determination on the dispute. Which is completely enforceable in the courts.

3 0
3 years ago
The break-even point is that level of activity where:
ycow [4]
Dddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddd
3 0
3 years ago
Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is availab
SVETLANKA909090 [29]

Answer:

  • Economic order quantity= 1406 units
  • Safety Stock= 630 units
  • Reorder Point= 14130 units

Explanation:

Given Demand D= 78,000units/year

Ordering cost S = $38.00/order

Holding cost H = $3.00unit/year

Average lead time = 9 weeks

Standard deviation of weekly demand = 120 units

a) Economic order quantity:

EOQ = \sqrt{(2*D*S)/H}

EOQ = \sqrt{(2*78000*38)/3}

1405.7 = <u>1406 Units</u>

b)<u> Safety Stock:</u>

Weekly demand = 78000/52 =1500 units

Standard deviation of weekly demand = 120 units

Lead time is 9 weeks

Using the normsinv() in excel the Z value for the desired 96% service level is 1.75

Safety stock = z\sigma _{d}\sqrt{L}

= 1.75*120*\sqrt{9}

= 630 units

Reorder point = average lead time demand + safety stock

= lead time * weekly demand + saftey stock

  = 9*1500 + 630

  = 13500 + 630

Reorder point = 14130

8 0
3 years ago
Read 2 more answers
Kraft has adapted its popular Oreo cookie to the unique tastes of consumers all around the world, whether it's mango-and-orange
zvonat [6]

Answer:

Product adaptation

Explanation:

Product adaptation is when an existing product is changed or modified to suit customers need in a foreign market . The aim is to satisfy customers want all around the world where the products are exported to.

There are various reasons why products may be adapted, one of which is changing the taste of a product to meet the desire of customers who are based in other countries or around the world. It may also involve either changing the brand, colour etc, just to meet customers demand all around the world.

Other reason why a product may be adapted is to comply with local laws where the products are exported to.

7 0
2 years ago
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