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wlad13 [49]
3 years ago
10

A 50-year old customer is in a very low tax bracket. She lives in a state that has one of the highest income tax rates. The cust

omer is seeking income and preservation of capital. She has a 10 year investment time horizon. The best r
ecommendation would be a 10 year maturity:__________

a. Treasury Bond
b. investment grade corporate bond
c. investment grade municipal bond
d. Treasury STRIPS
Business
1 answer:
zvonat [6]3 years ago
3 0

Answer:

b. investment grade corporate bond

Explanation:

Credit rating is used to show the reliability of a security. The Investment Grade is a credit rating the is low risk bond. There is low possiblity of default on this type of investment.

Medium rating of A and BBB represent the investment grade corporate bond.

This is an attractive investment for the more conservative investor.

This is an ideal investment choice for the 50-year old customer with very low tax bracket, in a state with high income tax rates. So she is seeking income and preservation of capital.

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Rob Redbird is interested in attending a concert next weekend. Unfortunately, he is scheduled to work. If he finds a substitute
telo118 [61]

<u>Full question:</u>

Rob Redbird is interested in attending a concert next weekend. Unfortunately, he is scheduled to work. If  he finds a substitute for his shift so he can attend the concert, what kind of cost is he incurring?

A. Fixed

B. Opportunity

C. Unexpected

D. Unavoidable

E. Tangible

<u>Answer:</u>

He incurring is Opportunity kind of cost

<u>Explanation:</u>

Opportunity costs describe the gains a somebody, investor or business craves out on when picking one choice over another. Analyzing opportunity costs can manage you in exceeding profitable decision-making. Bottlenecks are frequently a case of opportunity costs.

The most fundamental description of opportunity cost is the cost of the subsequent most immeasurable thing you could have accomplished had you not obtained your primary option. Opportunity cost examination also operates a vital role in preparing a business's capital building.  Opportunity costs are universally and transpire with every decision made, huge or little.

8 0
3 years ago
You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think t
Ira Lisetskai [31]

Answer:

sell 1.714

Explanation:

The computation of the number of contract buy or sold to hedge the position is shown below:

As we know that

Number of contracts = Hedge Ratio    

Hedge Ratio = Change in Portfolio Value ÷ Profit on one future contract

where,

Change in the value of the portfolio is

For that we need to do following calculations

Expected Drop in Index is

= (1200 - 1400) ÷ 1400    

= -14.29%    

And, Expected Loss on the portfolio is

= Beta × Expected index drop

= 0.60 × (-14.29%)    

= -8.57%    

So, the change is

= 1000000 × (-8.57%)

= -$85,700  

And, the profit is

= 200 × 250 multiplier

= 50,000

So, the hedging position is

= -$85,700 ÷ 50,000      

= -1.714  

This reflects the selling position

3 0
3 years ago
A company approves a large capital investment and implements a global computer system​ (for example, an Enterprise Resource Plan
SpyIntel [72]

Answer:

Structural

Explanation:

Due to supporting process and deeply infrastructure technology ERPs (Enterprise Resource Planning) are pillars that support all ongoing core and management process by providing all resources, information, energy and everything that is needed to produce value (products, services and projects) as part of the principal goal of any company.  

6 0
3 years ago
Cathy wants to purchase an annuity where she can withdraw $15,000 at the beginning of each year for the next 25 years. She expec
GuDViN [60]

Answer:

hmm idk i dk

Explanation:

6 0
3 years ago
The Vice President of Biomedics is trying to decide on the composition of a new product development team. If she chooses members
Marina86 [1]

Answer:

b. Increase in communication and coordination costs

Explanation:

Based on the information provided within the question it can be said that she will likely experience a disadvantage with an Increase in communication and coordination costs. This is mainly due to the fact that those individuals are already used to communicating and coordinating with their teams in a very specific way that they have developed through months of working together. By putting members from different divisions together they have to learn how to coordinate with one another which will take time and money.

8 0
3 years ago
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