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klio [65]
3 years ago
14

Consider the futures contract written on the S&P 500 index and maturing in one year. The interest rate is 5.8%, and the futu

re value of dividends expected to be paid over the next year is $21. The current index level is 1,453. Assume that you can short sell the S&P index. a. Suppose the expected rate of return on the market is 11.6%. What is the expected level of the index in one year?
Business
1 answer:
Damm [24]3 years ago
8 0

Answer:

$1,600.55

Explanation:

The computation of the expected level of the index in one year is shown below:

= Current index level × (1 + expected rate of return) - expected dividend in the next year

= $1,453 × (1 + 11.6%) - $21

= $1,621.55 - $21

= $1,600.55

We simply applied the above formula by considering the items shown above i.e current level index, expected rate of return, and the expected dividend in the next year

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7 0
3 years ago
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pochemuha

Explanation:

A marketing message that is highly regarded in today's world, is one that manages to demonstrate business values in the form of procedures, products and services that contain added value in addition to the purely profitable.

As an example that would write a marketing message about a new clothing brand, it would include information that demonstrates that the manufacturing process and raw materials used in making the clothing is sustainable and has a low impact on the environment.

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3 0
3 years ago
Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of
skelet666 [1.2K]

Answer:

Correct answer is C. $ dollars.

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3 years ago
In which systems development life cycle do model developers use a model to generate functional requirements and physical design
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The systems development life cycle in which model developers use a model to generate functional requirements and physical design specifications simultaneously is:

  • Prototyping life cycle

<h3>What is a Model?</h3>

This is a prototype which is used to represent a real thing to show the real life scenarios and applications on a much smaller scale.

With this in mind, we can see that in the prototyping life cycle, the model developers make functional requirements simultaneously to find out how the physical design specifications would look like.

Read more about life cycle here:
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6 0
2 years ago
As the average hourly wage increases from $18 per hour to $20 per hour, the quantity of frozen dinners demanded decreases from 3
horrorfan [7]

Answer:

The income elasticity of demand for frozen dinners is negative when there is an increase of hourly wages. -51%

Explanation:

When the income elasticity is negative it means that the good is inferior so when the income is increased, the demand of the good decrease beacuse its demand change to a better quality good. For instance in this case a fresh meal.

income elasticity % = % change in quantity / % change in income

(((3350-3550)/3550)/((20-18)/18))*100

7 0
3 years ago
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