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77julia77 [94]
3 years ago
11

erest rate parity holds. The U.S. interest rate is 13 percent and the British interest rate is 10 percent. The forward rate on B

ritish pounds exhibits a ____ of ____ percent.​
Business
1 answer:
vampirchik [111]3 years ago
3 0

discount; 2.73

premium; 2.73

discount; 3.65

premium; 3.65

The forward rate on British pounds exhibits a premium of 2.73 percent.​Answer: Option 2.

<u>Explanation:</u>

An interest rate is the percentage of principal charged by the bank for the utilization of its cash. The chief is the measure of cash advanced. Since banks acquire cash from you (as stores), they additionally pay you a loan fee on your cash.

The nominal interest rate is the rate of interest with no alteration for inflation. For instance, assume somebody stores $100 with a bank for 1 year, and they get enthusiasm of $10 (before charge), so toward the year's end, their parity is $110 (before charge).

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Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be a
ArbitrLikvidat [17]

Answer:

c. $150.

Explanation:

the extra amount of hours Maurice can work taking a flight will be of 5 hours

(8 hours taking a plane against 3 hours if driving)

As the income per hour is 30 dollar it can generate;

5 hours x $30 per hour = $150

Maurice will only travel by plane if it generates the same or more income than the driving thus, a differencial price of less than 150 dollars will provide Maurice with a net gain. Also we should consider that if Maurice drives his car it is taking a depreication hit per mile while driving that is being ignoer to keep the assignment simple. But considering that the amount of differential income could be higher than $150

8 0
3 years ago
Christian and Monica are married and are both in good health with reasonably secure careers. Christian and Monica have annual in
scZoUnD [109]

Answer:

$81,750

Explanation:

The computation of the amount of total insurance is shown below:

= (Home mortgage loan + car loans + personal debts + credit card loans) ÷ 2  + estimated funeral cost

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5 0
3 years ago
11. If you want to have a return for your Final Portfolio (that is invested between Optimal Risky portfolio and Risk Free Securi
melamori03 [73]

Answer:

Answer is explained in the explanation section.

Explanation:

Note: First of all, this question is incomplete and lacks necessary data to calculate this question. However, I have found the similar question on the internet with complete data given. Additionally, I have shared that data as well in the attachment below for your convenience, Thanks.

Solution:

SD = Standard Deviation

Using utility function, E(R) = Rp - 0.005 x A x SD^{2} = 1.34 - 0.005 x 3x 4.06^{2}

Using utility function, E(R) = 1.093%

If the weight in the risky portfolio is let's say, "a" then,

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So,

E(R) = a x Rp + (1 - a) x Rf

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Similarly, if you want a return of 1.10%,

we can follow the above steps and get

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