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3 years ago

To take advantage of an arbitrage opportunity, an investor would

Business

1 answer:

Svetach [21]3 years ago

5 0

Answer:

The answer is III) make simultaneous trades in two markets without any net investment.

Explanation:

Arbitrage is simultaneously buying an asset ( may be currency, securities...) in a low-priced market and sell it in a high-priced market.

As a results, the investor earns profit from price differences in the two markets without risk and net investment. It is because the two trading happens at the same time once price differences in any two markets are recognized ( arbitrage opportunities recognized) and the proceed of selling the asset is immediately used for financing/returning to the buying of the asset.

Thus, (III) is the correct answer.

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Norman Pilbarra submits a market order to buy 400 shares. What is the maximum price that he will pay?

olga nikolaevna [1]

Answer:

The question is missing stock quotes which are found in the attached.

The maximum price that Norman Pilbarra will pay to buy 400 shares is $103.8 per share.

Explanation:

Judging from the attached stock quotes,the first 200 shares offered for sale is $103.5 per share while the next 200 shares is at a price of $103.8.

This then means that the maximum price for 200 shares is $103.8.This information is derived from the ask prices not bid prices since ask price is for sale,whereas bid is for purchase.

5 0

4 years ago

steven's income decreased from $1,800 a month to $1,200 a month when he went back to school. as a result, he cut back on trips t

Ymorist [56]

Steven's income elasticity is 0.83

<h3>How to calculate the income elasticity ?</h3>

Income elasticity can be described as the change in the quantity demanded by the change in the income

Steven's income decreased from $1800 to $1200

His trips also decreased from 15 to 10

The Income elasticity can be calculated as follows

= 15 -10/(1800-1200) × 100

= 5/600 × 100

= 0.00833 × 100

= 0.83

Hence the income elasticity is 0.83

Read more on income elasticity here

brainly.com/question/14620012?referrer=searchResults

#SPJ1

6 0

2 years ago

To create a balanced budget, one must make sure to.

Doss [256]

Answer:

list the price o wants

Explanation:

3 0

3 years ago

The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number

DochEvi [55]

Answer:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The answer is attached.

Part (b):

How many screens will be built if the real interest rate is 5.5 percent?

Answer: 3 screens

Part (c):

How many screens will be built if the real interest rate is 7.5 percent?

Answer: 1 screen

Part (d):

How many screens will be built if the real interest rate is 10 percent?

Answer: 0 screens

Part (e):

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

Answer: $727,272.73(approx.)

Explanation:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The solution is attached with working.

Part (b):

How many screens will be built if the real interest rate is 5.5 percent?

Solution:

3 screens

The interest cost of each screen = 5.5% x $1,000,000 = $55,000.

There are no other costs mentioned. The value of marginal product exceeds $55,000 for 3 screens.

Therefore, 3 screens should be built.

Part (c):

How many screens will be built if the real interest rate is 7.5 percent?

Solution:

1 screen

The value of the marginal product exceeds the interest cost (7.5% of $1,000,000, or $75,000) for only the first screen.

Thus, one screen will be built.

Part (d):

How many screens will be built if the real interest rate is 10 percent?

Solution:

0 screens

At 10% interest, the interest cost of a screen is $100,000, more than the value of the marginal product of even the first screen.

Thus, no screens will be built.

Part (e):

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

Solution:

The value of the marginal product of the fifth screen is $40,000. At an interest rate of 5.5%, building five screens is profitable only if 5.5% times the per-screen construction cost is no greater than $40,000.

Financial cost per screen = real interest rate x construction cost of per screen

$40, 000 = 5.5% x construction cost per screen Construction cost per screen = $40,000 ÷ 5.5%

= $727,272.73(approx.)

3 0

3 years ago

An unfavorable production-volume variance ________. A. is not a good measure of a lost production opportunity B. indicates tha

antiseptic1488 [7]

Answer:

d) measures the amount of extra fixed costs planned for but not used

Explanation:

An unfavorable production-volume variance measures the amount of extra fixed costs planned for but not used. As per production-volume variance extra fixed costs planned for but not used has unfavorable production-volume variance.

When production-volume variance is unfavorable, that means the fixed cost are allocated on lesser number of manufactured units, hence it indicates that the fixed costs are not controlled well.

8 0

3 years ago