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2 years ago

Which of the following is an arbitrage opportunity?

Business

1 answer:

FromTheMoon [43]2 years ago

7 0

Answer:

D. The bank offers you a loan at 4% interest and a savings account that pays 5% interest.

Explanation:

Arbitration is a financial strategy that consists of the price difference between different markets on the same financial asset to obtain an economic benefit, usually without risk.

To perform arbitration, complementary operations (buy and sell) are carried out at the same time and wait for prices to adjust. The arbitration takes advantage of this divergence and obtains a risk-free gain. In other words, the arbitrajista is positioned short (sells) in the market with higher price and long (purchase) in the market with lower price. The benefit would come from the difference between the two markets.

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What is the tax penalty for no health insurance 2016?

alukav5142 [94]

$695 per adult
$347.50 per child under 18
Maximum: $2,085

6 0

3 years ago

Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inv

AURORKA [14]

Answer & Explanation:

a.- Revenues: Increase for 3.2 millions

It will be recognize for the entire order, as it was deliveried entirely within the accounting period.

b.- Earnings: Increase for 1.5 millions

The earnings for the business will be the net between the revenues and expenses.

3.2 revenues - 1.7 expenses = 1.5 earnings

c.- Receivables: Increase for 1.8 millions

It will increase for the unpaid portion ofthe order.

d.- Inventory Decrease for 1.7 millions

It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.

e.- Cash: Increase for 1.4 millions

It will increase for the amount received from the customer. As it was no payment from the business in the transaction.

5 0

3 years ago

The index weighting that results in portfolio weights shifting away from securities that have increased in relative value toward

Sliva [168]

Answer: B. Fundamental weighting.

Explanation:

A fundamentally weighted index refers to a type of equity index whereby the components that are chosen based on the fundamental criteria like the dividend rates, book value, revenue, dividend rates, etc.

Fundamental weighting is the index weighting which results in portfolio weights shifting away from securities that have increased in relative value toward securities that have fallen in relative value whenever the portfolio is rebalanced.

3 0

2 years ago

What is another term for the buying and selling of stocks?

LuckyWell [14K]

Answer:

Trading

Explanation:

Buying and selling stocks is another term for trading because it is a system of "give and get"

3 0

3 years ago

When hope springs purchases refillable bottles for its water, it submits its orders directly from its computer system to its sup

Ipatiy [6.2K]

Answer:Electronic data interchange (EDI)

Explanation:

Because manual operation in business tend to cause sluggish processing of documents, Electronic data interchange (EDI) is adopted which is the use of standard electronic format to replaces paper-based documents like purchase orders or invoices, postal mail, fax so that business operations and recordings can flow straight through to the appropriate application.

Using a standard format like ANSI, EDIFACT etc for EDI documents is necessary so that computers in use understands each piece of information is and in what format it should document so as to pass relevant information to a receiver.

Because the exchange of EDI documents is typically between business partners, Electronic Data Interchange is important because it helps to eliminates manual data entry errors ,Streamline transaction processing leading to Increases productivity because it easier and more cost-effective since business do not require more staff.

6 0

3 years ago