Answer:
The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.
Explanation:
optimal hedge ratio
= coefficient of correlation*(standard deviation of quarterly changes in the prices of a commodity/standard deviation of quarterly changes in a futures price on the commodity)
= 0..8*(0.65/0.81)
= 0.642
Therefore, The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.
Answer:
You need to have in mind that you are looking at the present value because the lump sum is worth $50,000 today. You need to compare the present for 10 years of your life would be worth today.
So:
FV=0
N=10 X 12=120
PMT= 641
I=6.5% / 12= 0.5417%
Solve for PV= $56,451.91 (is larger than $50,000)
According to psychological egoism, all actions are driven by self-interest. In other words, it implies that everyone's behavior, actions, and decisions are driven by self-interest. Additionally, it implies that all decisions must be driven by personal gain.
According to psychological egoism, all actions are driven by self-interest. In other words, it implies that everyone's behavior, actions, and decisions are driven by self-interest. Additionally, it implies that all decisions must be driven by personal gain.
A second defense of psychological egoism contends that people always act selfishly because it makes them feel good. For instance, you might assist a turtle crossing a roadway because, if you didn't, you would be concerned for its safety while doing so.
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Answer:
The numbers are missing, so I looked for a similar question (see attached image).
- the expected value for option A (modernize everything) = (0.5 x $90,000) + (0.5 x $25,000) = $57,500
- the expected value for option B (modernize only second floor) = (0.4 x $80,000) + (0.6 x $70,000) = $74,000
- the expected value for option C (do nothing) = (0.3 x $60,000) + (0.7 x $33,000) = $41,100
The option with the highest expected value is option B (modernize only second floor).
One of the huge benefits of just-in-time production is that the need for "time" is eliminated.
<h3>What is just-in-time production?</h3>
With just-in-time (JIT) manufacturing, products are produced as needed, rather than in excess or ahead of schedule.
Some characteristics of just-in-time are-
- With just-in-time (JIT) manufacturing, products are produced as needed, rather than just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules in excess or ahead of schedule.
- Because Toyota, a vehicle manufacturer, introduced just-in-time manufacturing in the 1970s, the practise is often referred to as the Toyota Production System (TPS).
- To prevent work-in-process overcapacity, JIT is frequently used in conjunction with the scheduling technique known as kanban.
- The JIT production method depends on consistent output, excellent craftsmanship, no equipment failures, and trustworthy suppliers for its success.
- The JIT system is also known as short-cycle manufacturing (as used by Motorola) and continuous-flow manufacturing (as used by IBM).
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