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4 years ago

The foreign-exchange market is located exclusively in the united states. true or false

1 answer:

Alex4 years ago

5 0

False: An individual buys from a supplier whose currency is depreciating against the individuals currency, the individual will have to pay a larger amount of his own currency to complete the purchase.

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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and co

timofeeve [1]

Answer:

0.296875

Explanation:

Given the following :

Probability distribution of risky funds :

- - - - - - - - - - - - - - stock fund(S) - - bond fund(B)

Expected return - - - 15% - - - - - - - - - - 9%

Std - - - - - - - - - - - - - 32% - - - - - - - - - - 23%

Correlation between funds return = 0.15

Sure rate = 5.5%

To calculate the Sharpe ratio we use the formula :

Sharpe Ratio = (Expected Return of Investment - Risk Free Rate) / Standard Deviation of excess return of investment

For the stock fund :

Expected return = 15%

Risk free rate = market sure rate = 5.5%

Standard deviation = 32%

Sharpe ratio of stock fund :

(15% - 5.5%) / 32%

= 9.5% / 32%

= 0.296875

For Bond fund :

Expected return = 9%

Risk free rate = market sure rate = 5.5%

Standard deviation = 23%

Sharpe ratio of bond fund :

(9% - 5.5%) / 23%

= 3.5% / 23%

= 0.1521739

Therefore the Sharpe ratio of the best feasible CAL is the higher of the two ratios which is 0.296875

5 0

3 years ago

Bright Slope Corp. has provided the following information:Balance SheetCash $ 10,000 Accounts Payable $ 5,000Marketable Securiti

Julli [10]

Answer:

Answer : Retained earning = 61400

Explanation:

Sales next year (100000+20000) = 120000

Increase in sales = 120000-100000/100000= 20%

Current profit margin = 7500/100000= 7.5%

Dividend Payout ratio = Dividend / net jncome = 3000/7500 = 40%

New profit margin = 120000 x 7.5% =9000

New Dividend = 9000 x40% = 3600

Performance Balance sheet

Cash 10000(1+0.2) 12000

Marketible securities (no change) 5000

Account Receivable 25000(1+0.02) 30000

Inventory 35000(1+0.02) 42000

Total Current Asset 89000

Net Fixed Asset (80000+12000) 92000

Total Asset 181000

Accounts payable 5000(1+.02) 6000

Accruals 2000(1+.02) 2400

Notes Payable 8% (no change as rolled over) 12000

Total Current Liabilities 20400

Long Term Debt 10% 48000

Common stock 32000

Retained Earning 61400

Balancing figure (additional funding) 19200

181000

Retained earning = Old balance + (Current year net income - dividend paid)

56000+ ( 9000-3600) =61400

2) changes in working capital.

Working capital means Current asset - current liabilities

Earlier it was 75000 - 19000 = 56000

Now its 89000 - 20400 = 68600

Working capital has been increased by 68600 - 56000 =12600

(working capital is the amount needed to run business day to day activities.)

Although sales increased by 20% but working capital doesn't increase by 20% because payable were rolled over. So its bad management as company management is expanding its businesses not from current business retained earning but by deferring payables

8 0

3 years ago

A patent is an exclusive right to produce and sell a product for how long

kozerog [31]

20 years

I just took the test

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HELP ASAP!! What process includes sending rough drafts to the client for approval?

cricket20 [7]

I want to say that the answer is <span>copy development</span>

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3 years ago

A father and his son are celebrating the father's 75th birthday. Drink for drink, who will most likely have a higher BAC ?

Temka [501]

The one who will most likely have a higher BAC is the father because a person who is older will most likely have the higher BAC, as the father is already seventy five and much older to his son, he will be therefore have a higher BAC compared to his son.

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3 years ago

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