Answer:
This question lacks answers
A. currency swap.
B. arbitrage.
C. backwardation.
D. straddle.
<u>The answer is </u><u>b.</u>
Explanation:
Arbitrage is a common practice used to gain profits from inefficient markets. Since most financial markets are inefficient by nature, dealers and similar business entities that have an interest in this kind of business practice.
The profit in arbitrage is based on the <u>imbalance in the two prices</u> on each market respectively. The term is mainly used for financial markets and various financial instruments (securities, bonds, currencies).
In the example above, the dealer becomes an arbitrageur by making a profit from the difference in the yen/dollar exchange rate in two markets (NY and London.)
The statement "A lower expected return means a higher risk will have to be accepted. " Is false. This is further explained below.
<h3>What is
the expected return?</h3>
Generally, According to the proverb, "A lower projected return indicates a bigger risk will need to be taken." Is false
In conclusion, The amount of profit or loss that an investor might anticipate obtaining as a result of the investment is referred to as the anticipated return. To get an anticipated return, first, multiply all of the possible outcomes by the percentage chance that each one will occur, and then add up all of those products. It is impossible to provide a guarantee on expected returns.
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The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue.
It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form.
<h3>How do we calculate net profit margin?</h3>
Net profit margin is calculated by dividing the net profits by net sales, or by dividing the net income by revenue realized over a given time period.
<h3>What is good net profit ratio?</h3>
For example, in the retail industry, a good net profit ratio might be between 0.5% and 3.5%.
Other industries might consider 0.5 and 3.5 to be extremely low, but this is common for retailers. In general, businesses should aim for profit ratios between 10% and 20% while paying attention to their industry's average.
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Government issued picture ID, as well as a second form of ID. Preferably a social security card.
