Answer:
The Mean return = 0.8*16.5% + 0.2*-11.6%
The Mean return = 0.132 + (-0.0232)
The Mean return = 0.132 - 0.0232
The Mean return = 0.1088
The Mean return = 10.88%
Variance = 0.8*(16.5%-10.88%)^2 + 0.2*(-11.6%-10.88%)^2
Variance = 0.8*(5.62%)^2 + 0.2*(-0.72%)^2
Variance = 0.012634
Most likely, Shaq will ask that the court overturn the award based on the acceptance of the bribe by Pat.
Option - b
<u>Explanation:
</u>
Arbitration is a method to solve quarrels outside the court. The quarrel will be decided by the arbitral tribunal which gives the arbitration award. This award is lawfully compulsory from both the parties and enforceable in the courts.
The court can impose but these awards will be overturned by the court only in special cases. The court will declare void, or ignore to accept an arbitration award if it is a fraud product or misbehavior by the arbitrator.
Answer:
correct option is B. 40.5
Explanation:
given data
P = 78 - 15 Q
Q = Q1 + Q2
MC1 = 3Q1
MC2 = 2Q2
to find out
What price should be charged to maximize profits
solution
we get here first total revenue and marginal revenue that is
total revenue TR = P × Q .......1
total revenue TR = 78Q - 15Q²
and
marginal revenue MR = 
marginal revenue MR = 78 - 30Q
now we get here
marginal revenue MR = MC1 = MC2
put here value
78 - 30Q1 - 30Q2 = 3 Q1 or 33 Q1 = 78 - 30Q2 ......................................a
78 - 30 Q1 - 30 Q2 = 2 Q2 or Q2 = 78 - 30Q1/32 ................................b
by equation a and b we get here
33 Q1 = 78 - 30 (78 - 
)
so here Q1 = 1 and
Q2 = 78 - 
Q2 = 1.5
so that Q will be
Q = Q1 + Q2
Q = 1 + 1.5
Q = 2.5
now we get value of P that is
P = 78 - 15 Q
P = 78 - 15 (2.5)
P = 40.5
so charged to maximize profits is 40.5
so correct option is B. 40.5
Answer:
1. PV = 101.87
2. YTM = 7.46%
3. Price of the bond is $100.92
Explanation:
PV = 8.5/ (1.065) + 108.5/ (1.075)2
PV = 7.981 + 93.889
PV = 101.87
Part B:
PV = 101.870
FV = 100
N = 2
PMT = 8.5
Using Financial Calculator:
r = 7.459237
YTM = 7.46%
Part C:
The forward rate for next year, derived from the zero-coupon yield curve, is approximately:
(1 + forward Rate) = (1 + 0.075)2/ (1.065)
forward rate = 8.51%
Price of the bond = 108.5/ (1.0851)
Price of the bond = 100
Part D:
Interest Rate = 8.51% - 1% = 7.51%
Price of the bond = 108.5/ (1.0751)
Price of the bond = 100.92
