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AURORKA [14]
3 years ago
12

____________the market school aruges that forward exchange rates do the best possible job for forecasting future spot exchange r

ates, so investing in exchagne rate forecasting services would be a waste of time.
Business
1 answer:
rjkz [21]3 years ago
8 0

Answer:

Efficient market school.

Explanation:

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

<em>Hence, according to the efficient market school it would be a waste of time investing in exchange rate forecasting services because all the information about an asset or security is already factored into their prices and as a result of the randomness of the market. </em>

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The market interest rate related to a bond is also called the
salantis [7]

Answer:

effective interest rate

Explanation:

The effective interest rate is the rate that an investor actually earns from investing in a bond. The effective interest rate is usually different than the interest rate stated on a bond (e.g. coupon rate).

It is also called market interest rate because bonds are sold in secondary markets at a different price than face value (usually bonds are sold at a premium or at a discount). That price at which the bonds are sold determine if the effective interest rate will be higher or lower than the stated interest rate of the bond.

5 0
3 years ago
Del Norte Brick Co. is located near the intersection of Texas, New Mexico, and Mexico. Improved access to the company’s property
OLEGan [10]

Answer:

Depreciation for year 3 = $115518

BV = $57798

Explanation:

The modified accelerated cost recovery method employees a classification-based approach to depreciating certain assets, once classified are assigned respective rates of depreciation. for example, assets classified under automobiles, trucks and machinery are treated under 5-year MACRS and will be depreciated at 20%, 32%, 19.2% and so on.

In this question the bridge across Rio Grande being built by Del Norte Brick co is treated under 3-year MACRS, for which the rates are as follows:

33.33% for the first year

44.45% 2nd year

14.81% 3rd year

7.41% 4th year

We have been asked to determine 3rd years' depreciation and book value, determined as follows:

Depreciation year 1: $780000 33.33% = $259974

Depreciation year 2: $780000 44.45% = $346710

Depreciation year 3: $780000 14.81% = $115518

So the depreciation for year 3 = $115518

The book value is calculated as follows:

<em>Book value = cost - accumulated depreciation</em>

BV = $780000 - $722202

BV = $57798

6 0
3 years ago
Specialization of labor results in the production of large quantities of a product.a. trueb. false
il63 [147K]

Answer: True

Explanation: Specialisation of labour in production is the process of classifying People who have different skills, talents, and interests into groups so they will be better at what they do.

Specialisation in certain tasks often aid workers to produce more quickly and with higher quality especially in assembly line laborers.

Specialization also allows businesses to take advantage of economies of scale, which means that for many goods, as the level of production increases, the average cost of producing each individual unit declines.

The division and specialization of labor has been a force against the problem of scarcity as more product will be produced as against when there is not specialisation in division of labour.

6 0
2 years ago
An advertiser wants to create ads that target potential customers in california. which targeting method should this advertiser u
PolarNik [594]
I believe the answer is Location Targeting.
Location targeting help advertisers to provide appropriate advertising that is relevant to the people that live in a certain location.
For example, an advertisement for sunblock products would be much more efficient if it's advertised to the people that live near the beach such as Miami.
5 0
3 years ago
If a competitive firm can sell a ton of steel for $500 a ton and it has an average variable cost of $400 a ton, and the marginal
Lena [83]
<span>If a competitive firm can sell a ton of steel for $500 a ton and it has an average variable cost of $400 a ton, and the marginal cost is $600 a ton, the firm should reduce its output. The reason for the reduction of output is the marginal cost it will have. The marginal cost exceeds the selling price of the product which is a bad sign for the company.</span>
8 0
3 years ago
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