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Alexeev081 [22]
3 years ago
9

lord penrose a financial analyst for the equitable life insurance society has just been asked to evaluate two mutually exclusive

project schemes: one of them offering a fixed guarantee annuity rate. (GAR) and another one offering the current annuity rate. HE must select one method of analysis and provide an answer based solely on that investment criterion. Which investment criterion should he use in this situation
Business
1 answer:
spin [16.1K]3 years ago
4 0

Answer:

The Equitable Life Assurance Society (Equitable Life), founded in 1762, is a life insurance ... Lord Penrose's 2004 Equitable Life Inquiry found that the company had made ... Both types of bonus were allocated at the discretion of the directors in ... between a fixed Guaranteed Annuity Rate (GAR) or the Current Annuity Rate ...

Explanation:

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Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be repre
Brilliant_brown [7]

Answer:

a. $16.

Explanation:

the firm offer a price where marginal revenue = marginal cost

We have to solve at which quantity the price is $1.

There, the marginal revenue would match the marginal cost.

1 = 5 - 0.5q

q= (5 -1) /0.5 = 4/0.5 = 8

Now, we solve or the price at which quantity is zero:

p = 5 - 0.5(q) = 5 - 0 = 5

With that we can now solve for the consumer good as the area of the triangle above the marginal cost and below the demand function

(see attached graph)

8 x (5-1) / 2 = 16

6 0
4 years ago
Airbnb, a room-sharing site, offers more rooms than Marriott. Goldman Sachs suggests that the supply of new rooms over the next
alexandr402 [8]

Answer:

C) The threat of new entrants.

Explanation:

Porter's Five Forces: It's an analysis helpful for the industries to get the understanding of the loopholes and their weaknesses. Porter suggested that anytime a company goes down, there would be one force involved among the following five forces.

  1. Threat of new entrants.
  2. Bargaining power of buyers.
  3. Threat of substitutes.
  4. Rivalry among existing competitors.
  5. Bargaining power of suppliers.

In our case:  

  • Threat of new entrants force is involved: There is always a threat to the existing companies of the new company entering the market. Some companies doesn't take them seriously and ends up getting damaged. And, as the Goldman suggests that new supplies of the rooms in coming years will hurt the existing companies. So they must act on this information and make a decision to change the event for their own better.  
4 0
4 years ago
Janine is 25 and has a good job at a biotechnology company. She currently has $5,000 in an IRA, an important part of her retirem
nexus9112 [7]

Answer:

$108,622.60

Explanation:

Calculation for the amount Janine's IRA will worth when she needs to start withdrawing money from it when she retires

Based on the information given we were told that She has the amount of $5,000 in an IRA, which is a vital part of her retirement nest egg in which She has well believes that her IRA will increase at an annual rate of 8%.

Secondly we were told that she is 25 age and plan to retire at the age of 65 which means that the number of years until her retirement will be 40 years(65 years-25 years)

Now let calculate how much she will be worth using this formula

Amount worth= Present value in IRA*(Annual rate increase)^ Numbers of years until retirement

Let plug in the formula

Amount worth=5,000 *(1 + 0.08)^40 =

Amount worth=5,000*(1.08)^40

Amount worth =5,000*21.72452

Amount worth= $108,622.60

Therefore Janine's IRA will be worth $108,622.60 when she needs to start withdrawing money from it when she retires.

7 0
3 years ago
Newly issued securities are sold to investors in which one of the following markets?A. ProxyB. InsideC. SecondaryD. Primary
Harrizon [31]

Answer:

D. Primary

Explanation:

The newly issued securities are first sold to the investors of the primary market .

The primary market id responsible for issuing the securities for the exchange of the company , or other groups .

The primary market are run by the underwriting groups which includes the investment banks .

Hence , from the information of the question , the correct term is ( d. ) Primary market .

7 0
3 years ago
A small business loan is used to pay for the costs associated with starting your own company? True or false
lesya [120]

Answer:

False

Explanation:

7 0
4 years ago
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