Answer:
true
Explanation:
The exchange rate is the rate at which one currency is exchanged for another currency
If interest rate is higher in a country compared to other countries, investors would be interested in investing in that country because they would earn a higher return for their investment.
As a result of the higher flow of funds into the economy with the higher interest rate, the demand for the country's currency increases. If the demand increases relative to supply, the value of that currency relative to other currencies increases and its exchange rate increases. this is what is referred to as currency appreciation
The total relevant cost per unit if starters are purchased from an outside supplier would include the contract price or the amount you would have to pay for the purchase and the freight of the product purchased. The total cost would include these two and dividing this total cost with the number of units purchased would yield to the relevant cost per unit.
Answer:
E. $2,688.77
Explanation:
We need to calculate the PMT of an ordinary annuity at 6%
PV 402,000
time:
85 years - 62 years = 23 years of retirement
23 years x 12 months per year = 276 months
rate: 6% annual rate we must divide over 12 months to convert into monthly: 0.06/12 = 0.005
C $ 2,688.766
<em>She can withdraw 2,688.76 per month</em>
Answer:
The alpha of the stock is 3.7%.
Explanation:
Alpha is the abnormal or additional return expected or received on a stock in excess of the required rate of return for such a stock as calculated by the Security market line or Capital asset pricing model equation.
We first need to calculate the required rate of return for such a stock and then deduct that rate from the expected rate of return to reach at alpha or the abnormal return.
- Required rate of return (r) = 0.05 + 1.1 * (0.08 - 0.05) = 0.083 or 8.3%
The abnormal return or alpha for such a stock is,
- Alpha = 12% - 8.3% = 3.7%
