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3 years ago

5

"If a portfolio manager believes that the market will be stable over the next 6 months, to generate extra income, the manager co

uld:"

1 answer:

nata0808 [166]3 years ago

3 0

Answer and Explanation:

For earning an extra income, the options contracts could be sold at the premium i.e. collected or in short word sell naked index calls.

Now if the index calls writer exercised, so the delivering of the stock could not be held as it delivers only cash

And, also the writing of index call oppose to the securities portfolio should be termed as a naked writing strategy

While on the other hand in case of the income writing, if the call writer owns the physical instrument than the writer expected to the market for staying neutral

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You are considering three alternative banks in which to open a savings account. The first bank offers you an annual rate r1, and

Scilla [17]

Answer:

1) Suppose you were to save $500.0000 in the first bank. The interest rate is r1=8.0000%. Three years from now, you should have

effective interest rate = 1.08 = (1 + r)¹²

r = 0.643403% per month

future value = $500,000 x (1.0643403)³⁶ = $629,856

2) Suppose you were to save $500.0000 in the second bank. The interest rate is r2=5.0000%. Three years from now, you should have

effective interest rate = 1.05 = (1 + r)³⁶⁵

r = 0.013368061% per day

future value = $500,000 x (1.00013368061)¹⁰⁹⁵ = $578,812.50

3) Suppose you were to save $500.0000 in the third bank. The interest rate is r3=3.0000%. Three years from now, you should have

future value = $500,000 x e⁰°⁰⁹ = $547,087.14

4) Let the interest rate in the first bank be r1=8.0000%, and you are considering saving your money for 3 years. The interest rate from the second bank that would make you indifferent between the first and second bank is r2=

$629,856 = $500,000 x (1 + i)¹⁰⁹⁵

(1 + i)¹⁰⁹⁵ = 1.259712

1 + i = 1.000210874

i = 0.000210874 = 0.0210874% per day or 7.7% annual

5) Let the interest rate in the third bank be r3=3.0000%, and you are considering saving your money for 3 years. The interest rate from the first bank that would make you indifferent between the first and third bank is

$500,000 x (1 + i)³⁶ = $547,087.14

(1 + i)³⁶ = 1.09417428

i = 0.2503128 per month = 3.05% annual

8 0

3 years ago

Organizations can use common core security principles recommended as industry best practices when developing policies, standards

egoroff_w [7]

Answer:

Timeliness principle.

Explanation:

Industry best practices can be used by various organizations as common core security principles to manage and control most, if not all of their assets and resources. These security principles can be adopted during the process of developing organizational policies, standards, baselines, procedures, and guidelines to effectively and efficiently manage the organization.

Timeliness principle can be defined as a principle which states that all stakeholders involved in the securitization of an organization and assets must act in a timely manner for the constant monitoring of the current and future state of the organization's assets, so as to avoid the integrity of its security being breached or compromised.

Hence, the principle which typically specifies that all personnel, assigned agents, and third-party providers should act in a timely manner to prevent and to respond to security breaches is known as the timeliness principle.

4 0

3 years ago

Which of the following is an example of the law of diminishing marginal returns? A. Holding capital constant, when the amount

Irina-Kira [14]

Answer:

The correct answer is option A.

Explanation:

The law of diminishing returns states that as we go on employing more and more unit of input while keeping other inputs constant, the return from each additional unit of input will go on declining.

This means that the output produced from each additional unit of input will go on declining.

Here, as capital is kept constant and labor is increased by a unit, the output at first increases by 5 units from 20 to 25. But later when input is again increased by a unit, the output increase by only 3 units from 25 to 28.

This shows the law of diminishing marginal returns where the marginal returns from a unit of labor is declining.

3 0

3 years ago

When all of a firm's inputs are doubled, input prices do not change, and this results in the firm's level of production more tha

Andre45 [30]

Answer: (B) on the downward-sloping portion of its long-run average total cost curve.

Explanation:

The downward-sloping portion of a company's Long Run Average Total Cost(LRATC) curve is the part where increasing returns to scale is witnessed.

This is because the costs that are incurred by the company leads to higher proportional output thereby reducing the average cost and pulling the LRATC down.

In this scenario, the inputs doubled and the firm's level of production more than doubled which means that with outputs increasing more than costs, the Average cost is reducing and the slope is downward sloping.

3 0

4 years ago

The letter “s” is directly printed on individual pieces of what brand of candy?

RSB [31]

The answer to this question is the candy skittles. The candy skittles have a letter s printed in each candy. This candy is manufactured and marketed by the Wrigley Company and was first produced in the year 1974 and have a fruit flavour.

4 0

3 years ago