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White raven [17]
3 years ago
14

A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $16, $24, and $55. The nu

mber of outstanding shares for each is 640,000 shares, 540,000 shares, and 240,000 shares, respectively. If the stock prices changed to $20, $22, and $57 today respectively, what is the 1-day rate of return on the index
Business
1 answer:
tatyana61 [14]3 years ago
3 0

Answer:

The 1-day rate of return on the index = 5.36%

Explanation:

Index Value = Sum of (Outstanding Shares*Share Price)

      q          p           mv              q1            p1          mv1

640,000   16    10240000      640000    20     12800000

540,000   24   12960000      540000    22     11880000

240,000   55   <u>13200000</u>  240000    57     <u>13680000</u>

                        <u>36400000 </u>                                <u>38360000</u>

Note: q/q1 = no of shares, p = price per share, mv/mv1 = market value, p1 = changed price per share

Return = (Index Value Today - Index Value Yesterday)/Index Value Yesterday

Return = (38360000 - 36400000) / 36400000

Return = 0.05385

Return = 5.36%

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Alternatively, PPP contends that changes to a nation's current account may have an impact on the value of the currency's exchange rate on the foreign exchange (Forex) market.

In contrast, the interest rate parity theory postulates that fluctuations in the exchange rate are caused by investor actions (whose transactions are reported on the capital account).

The "law of one price" as it pertains to the overall economy is the foundation of PPP theory.

Hence, option A and D is correct.

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2 years ago
a company budgets production of 15,000 solar panels in july. each unit requires 4 hours of direct labor at a rate of $20 per hou
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Answer:

Q is 98

Explanation:

Marginal (average) cost (including opportunity cost) = $8 + $2 = $10

Profit is maximized when MR = MC = 10.

P = 402 - 2Q

Total revenue (TR) = P x Q = 402Q - 2Q^2

MR = dTR/dQ = 402 - 4Q

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Answer:

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