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3 years ago

In the moeny market, an excess supply of money is equivelant to an excess of bonds

Business

2 answers:

luda_lava [24]3 years ago

7 0

Answer:

If there is an excess of money supply in the market, there will be an excess of demand for bonds.

This is because a higher money supply means lower interest rates, which make investment cheaper, although less rewarding (the yields are lower).

Fudgin [204]3 years ago

3 0

Answer:

The statement is: False.

Explanation:

When there is <em>excess in the supply of money</em>, people's buying power increases. Thus, they will have more <em>money to buy assets such as bonds implying there will be more demand for bonds but less supply</em> as people start purchasing them. As there is less supply of bonds their price is likely to rise which is interpreted in lower interest rates.

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Which kind of stock is most affected by changes in risk aversion? (In other words, which stocks see the biggest change in their

11Alexandr11 [23.1K]

Answer:

High beta stocks

Explanation:

High beta stocks are mostly affected by changes in risk aversion. Beta measures a stock's volatility in comparison to the overall market. High-beta stocks are supposedly riskier but these stocks provide potentials for higher return, low-beta stocks have lower risk and also lower returns.

In simple terms, high beta stocks is much more volatile than the index it's being measured against.

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3 years ago

Andrews corporation has income from operations of $227,000. in addition, it received interest income of $22,700 and received div

salantis [7]

10,900 + 47,500 = 57,900

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3 years ago

The slope of the demand curve for a monopoly firm is:

VladimirAG [237]

Answer:sorry man, don’t know

Explanation:

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2 years ago

Product A is normally sold for $9.60 per unit. A special price of $7.20 is offered for the export market. The variable productio

elixir [45]

Answer:

A. Reject (Alternative 1) $0.00

Accept (Alternative 2) $1.12

Differentials Effect on income (Alternative 2) $1.12

B. Accepted (Alternative 2)

Explanation:

a. Preparation of a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order.

DIFFERENTIAL ANALYSIS

Reject (Alternative 1) or Accept (Alternative 2)

March 16

Reject Accept Differentials Effect on income

(Alternative 1) (Alternative 2) (Alternative 2)

Revenue per unit $0.00 $7.20 $7.20

Costs:

Variable manufacturing costs per unit

$0.00 -$5.00 -$5.00

Export tariff per unit

$0.00 -$1.08 -$1.08

($7.20*15%=$1.08)

Income (Loss) per unit $0.00 $1.12 $1.12

b. Based on the above differential analysis

the special order should be ACCEPTED (Alternative 2).

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3 years ago

You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an

Nikolay [14]

Answer:

Ans. Assuming that the withdrawal period is 300 months (25 years), you can withdraw every month $15,547.96

Explanation:

Hi, first, we have to take to future value (30 years in the future) the invested capital (both the stock account and the bond account). From there, we will consider the sum of both future values as the present value of the annuity that you are about to receive for the next 25 years (300 months). But before we do all that, we need to convert the return rates (compounded monthly) into effective monthly rates, for that we just go ahead and divide each one by 12, as follows

r(Stock) = 0.105/12= 0.00875

r(Bond)= 0.061/12 = 0.00508

r(Combined Account)= 0.069/12=0.00575

Now we are ready, first, let´s find the future value of the stock account.

$FV(stock)=\frac{750((1+0.00875)^{360}-1) }{0.00875} =1,887,300.74$ }