1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ad libitum [116K]
3 years ago
8

the pure expectations theory holds, which of the following statements is CORRECT? a. The maturity risk premium would be zero. b.

The yield curve for Treasury securities would be flat, but the yield curve for corporate securities might be downward sloping. c. If 2-year bonds yield more than 1-year bonds, an investor with a 2-year time horizon would almost certainly end up with more money if he or she bought 2-year bonds. d. The yield curve for both Treasury and corporate bonds should be flat. e. The yield curve for Treasury securities cannot be downward sloping.
Business
1 answer:
Anastasy [175]3 years ago
7 0

Answer: The Maturity Risk Premium would be zero.

Explanation:

The Pure Expectations Theory believes that forward rates are just a representation of what people expect Future rates to be.

For this reason therefore, it believed that the Maturity Premium is Zero amongst Long Term Treasury Securities and that the difference in interest rates attached to Treasury bonds of different maturities is simply a result of what people perceive future interest rates to look like but as for Maturity Premiums, it doesn't exist in long term Treasury Securities.

You might be interested in
How does an organization get the most out of its large data without
Aleks [24]

Answer:

By Focusing on Key Performing Indicators (KPIs)

Explanation:

Having large amounts of data has its <em>advantages</em> with give entities competitive advantages over rivals. These include the ability to satisfy a market need and establish changing trends in demand.

However, some firms <em>get lost in large data</em> and this is because of overwhelming amount of information and failure to focus on their industry`s Key Performance Indicators (KPIs).

5 0
3 years ago
For its newest gaming console, Star Electronics decides to tell consumers about the product by placing a full-page advertisement
m_a_m_a [10]

The magazine ad which helps the firm to tell prospective consumers about the electronic product is as example of channel of communication in communication process.

<h3>What is a channel of communication?</h3>

This are different mediums through which a firm or sender send its  message to its intended audience.

Therefore, the magazine ad plays the role of a channel of communication because its helps to tell prospective consumers about the its electronic product

Read more about channel of communication

<em>brainly.com/question/771405</em>

8 0
2 years ago
Which two advantages do home buyers have over renters?
Snowcat [4.5K]
Answers A and E seem correct. B makes no sense. C makes no sense. and my renters insurance was very cheap vs property insurance.
5 0
3 years ago
Read 2 more answers
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $46,4
diamong [38]

Answer:

$5300

Explanation:

Contribution margin for Division B = Sales * Contribution margin ratio

= $243,000 * 20%

= $46,800

Total contribution margin = Division A + Division B

= $46,400 + $46,800

= $93,200

Contribution margin $93,200

Less : Traceable fixed expenses $51,100

Less : Common fixed expenses (plug) $5300

Net operating income $33,800

5 0
3 years ago
Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity 7.5 liters per unit
Julli [10]

Answer:

Direct material quantity variance= $1,400 unfavorable

Explanation:

Giving the following information:

Standard quantity 7.5 liters per unit Standard price $ 2.00 per liter

Actual production was 3,400 units.

The company used 26,200 liters of direct material.

<u>To calculate the direct material quantity variance, we need to use the following formula:</u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (7.5*3,400 - 26,200)*2

Direct material quantity variance= (25,500 - 26,200)*2

Direct material quantity variance= $1,400 unfavorable

5 0
2 years ago
Other questions:
  • Leslie Bradley is an entrepreneur with a small business in Little Rock, Arkansas. Working with a local engineer/inventor, Leslie
    8·1 answer
  • Kasen just completed his second year of college in education. He is not sure if this is the best career choice for him. He wants
    5·2 answers
  • Cassie’s app is considered to be_____.
    5·2 answers
  • Emily purchased a building to store inventory for her business. The purchase price was $760,000. Emily also paid legal fees of $
    11·2 answers
  • 1. What was Karl Marx’s basic premise and belief?
    15·1 answer
  • Which of the following loans will typically offer the lowest interest rate
    14·1 answer
  • In early America, a traditional market structure existed when A) merchants purchased goods from England. B) farmers sold produce
    13·2 answers
  • What are the two most important chemical reactions on earth?
    9·1 answer
  • Ecolap Inc. (ECL) recently paid a $0.46 dividend. The dividend is expected to grow at a 14.5 percent rate. At a current stock pr
    6·1 answer
  • Greg, a landscaper, is planning on opening his own landscaping company. He currently earns $50,000 per year working for his uncl
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!