Answer:
Every time a dollar is deposited into a bank account, a bank's total reserves increases. The bank will keep some of it on hand as required reserves, but it will loan the excess reserves out. When that loan is made, it increases the money supply. This is how banks “create” money and increase the money supply.
Explanation:
Answer:
The euro has gained strength against the dollar.
Explanation:
Exchange rate is a measure of the value of one countrie's currency compared with another. For example how many dollars can be exchanged for a euro.
Most exchange rates are free floating, meaning their value is determined by market forces (demand and supply).
Some countries however peg their currency value.
So in this scenario Thomas is giving more dollars for fewer euros because the euro has more value.
Answer:
The expected return and beta on the portfolio be after the purchase of the Alpha stock will be 11.20%; 1.23
Explanation:
Provided data;
90000 value portfolio with expected returns of 11% and beta of 1.20
($10 × 1000) = 10000 value Alpha Corp added with expected returns of 13% and beta of 1.50.
The new expected portfolio return =
rp = 0.1 × 13% + 0.9 × 11%
rp = 0.1 × 0.13 + 0.9 × 0.11
= 11.20%
The new expected portfolio beta =
bp = 0.1 × 1.50 + 0.9 × 1.20
bp = 1.23
Price and non-price competition, depends what your choices are though
Answer:
the expected return on the portfolio is 11.55%
Explanation:
The computation of the expected return on the portfolio is shown below:
= Respected Probabilities × respected return
= (0.35 × 0.09) + (0.2 × 0.15) + (0.45 × 0.12)
= 0.0315 + 0.03 + 0.054
= 0.1155
= 11.55%
hence, the expected return on the portfolio is 11.55%
