Answer:
She have to invest $7,387 today to achieve goal
Explanation:
Future value is the accumulated value of principal and compounding interest after some period of investment.
Target Future value = A = $14,500
Number of year = 12 years
Yearling compounding = 2 time a year
Total compounding = n = 12 x 2 = 24 compounding periods
Interest rate = r = 5.7% yearly = 5.7% / 2 = 2.85% semiannually
A = P ( 1 + r )^n
$14,500 = P ( 1 + 2.85% )^24
$14,500 = P x 1.963
P = $14,500 / 1.963
P = 7,386.65
P = 7,387
Answer:
The correct answer is letter "C": natural resources.
Explanation:
Factor endowment refers to the factors of production -<em>land, labor, capital, and entrepreneurship</em>- a nation has available for manufacturing. Countries with more factors of production available tend to be richer than those that do not. Possessing more factor endowments available can also play a key role for countries to establish a comparative advantage compared to other nations.
Therefore, <em>American economist Michael E. Porter (born in 1947) is likely to consider natural resources a basic factor endowment while skilled labor force, for instance, would be considered as an advanced factor of production. </em>
Answer: Aggregate
Explanation: Aggregate demand is the sum of consumption expenditure, investment expenditure, government expenditure, and net exports.
Here is more information!!!: http://www.businessdictionary.com/definition/aggregate-demand.html
The portfolio beta would simply be the summation of the
weighted average of each beta.
Where weighted average of each beta is calculated as:
Stock weighted average = Stock proportion * Individual
beta
Therefore,
Stock A beta weighted average = 0.2 * 0.4 = 0.08
Stock B beta weighted average = 0.3 * 1.2 = 0.36
Stock C beta weighted average = 0.25 * 2.5 = 0.625
Stock D beta weighted average = 0.25 * 1.75 = 0.4375
The summation of all betas yield the overall portfolio
beta:
Portfolio beta = 0.08 + 0.36 + 0.625 + 0.4375
<span>Portfolio beta = 1.5025 ~ 1.5</span>
Answer:
B. No. In normal times banks will not choose to pay more than the face value of a discount bond, since that implies negative yields to maturity.
Explanation:
There is no bank that would like to pay more for treasury bills or bonds. Banks are profit-maximizing organizations and as a result are always investing in profitable ventures and transactions and not in loss-making transactions as in this example. Banks would have preferred to buy the instruments for $5,900 or less so that they could earn some interest when the instrument is repaid with the face value of $6,000.