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
ololo11 [35]
3 years ago
11

Statement 1: The onset of 5% inflation means that your receipt of a $100 interest payment allows you to purchase only $95 worth

of goods and services. Statement 2: For the average rational investor or saver, there is an indirect, or inverse, relationship between the amount of risk exhibited by a security and the risk premium that would be required by the investor or saver. Statement 3: It is a mathematical impossibility for the expected future inflation rate to be greater than the real risk-free rate of return on an investment. Statement 4: All things being equal, savers and investors expect to receive some amount of maturity premium as compensation for their deferred consumption. The true statements are_______________.a. 1 and 4b. 1 and 3c. 2 and 3d. 2 and 4
Business
1 answer:
Nimfa-mama [501]3 years ago
6 0

Answer:

A. 1 and 4 are true

Explanation:

Statement 1: When inflation goes up the market prices of goods increase and reduces buying power of customer. So, if you get $100 even after 5% inflation, you would get $95 worth good.

Statement 2: It is commonly known as, the higher the risk the higher the gain. So, risk premium and risk exhibited by security is directly related with each other.

Statement 3: Since, risk free rate is the compensation for time value of money, that is why it can’t make real risk-free rate negative because real risk rate is there, but inflation can go higher than risk free rate.

Statement 4: Maturity payment is paid to investors or savers after certain period of time along with principal amount.

Hence, A. 1 and 4 are true

You might be interested in
The marketing information system​ (mis) consists of​ _______, __________, and​ ___________to generate and validate actionable cu
jeka57 [31]
People and procedures for assessing information​ needs, developing the needed​ information, and helping decision makers use the information. Hope it is helpful. Peace✌️
3 0
3 years ago
___ involves defining and documenting the features and functions of the products produced during the project as well as the proc
stepan [7]

The answer to the above question is - Collecting Requirements.

Collecting requirements helps in clearly defining and providing information on the features and the function of the products products and the processes used for manufacturing or creating them.

3 0
4 years ago
A company that reports segment information had average total assets of $1,530,450 and total net income of $602,700. Segment A ha
antoniya [11.8K]

Answer: 0.32 times

Explanation: Return on assets can be defined as the ratio under which companies are evaluated on the basis of total amount of assets investment. It is a ratio that evaluates the profitability of a company, it shows the ability of a company to generate revenue from the assets invested in it.

It can be computed as following :-

=\:\frac{NET\:INCOME}{AVERAGE\:TOTAL\:ASSETS}

=\:\frac{\$304,300}{\$931,800}

      = 0.32 times

6 0
3 years ago
While running a program, Sasha enters a negative number when a positive value was expected. Which type of error is likely to occ
Eddi Din [679]

Answer:

I believe it's Logic

Explanation:

8 0
3 years ago
Read 2 more answers
Giselle predicts that she will receive a grant for $4,000. If she has 4 years in which to save, what is the minimum monthly amou
QveST [7]

Complete question :

Giselle used the table to predict the cost of one year of college.

Category

Estimated Cost 2017–2018

tuition

$12,450

room and board

$10,125

transportation

$2,600

books and fees

$2,250

other

$1,250

Giselle predicts that she will receive a grant for $4,000. If she has 4 years in which to save, what is the minimum monthly amount she should deposit in an interest bearing savings account to be able to pay her contribution for one year of college?

$400

$500

$600

$700

Answer: $600

Explanation:

Given the following college cost estimate:

Tuition - $12,450

room and board - $10,125

transportation - $2,600

books and fees - $2,250

other - $1,250

Total cost : Tuition + room and board + transportation + books and fees + others

$(12450 + 10125 + 2600 + 2250 + 1250) = $28,675

If Giselle has 4 years to save monthly ;

12 months = 1 year

(12 * 4) months = 4 years

48 months

Monthly saving = total cost / number of months

Monthly saving = $28,675 / 48

Monthly saving = $597.39583

= $ 600 (approximately)

6 0
3 years ago
Other questions:
  • While working at a busy law firm, Bruce is using Skype to meet with a client in another state. Although Bruce is trying to conce
    13·1 answer
  • Retained earnings a.cannot have a debit balance b.is equal to cash on hand c.is the same as contributed capital d.changes are su
    10·1 answer
  • Lisa has $1,000 in cash today. Which one of the following investment options is most apt to double her money? A. 6 percent inter
    15·1 answer
  • Suppose tax rate on first $10,000 income is 0 percent; 10 percent on next $20,000; 20 percent on next $20,000; 30 percent on nex
    9·1 answer
  • Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard mac
    7·1 answer
  • A group health plan that saves you money on health insurance is an example of a/an _____.
    6·2 answers
  • Morgan corporation uses estimated direct labor hours of 200 comma 700 and estimated manufacturing overhead costs of $ 920 comma
    7·1 answer
  • 2017 2016 Net sales $ 1,110,000 $ 1,116,500 Net income (loss) 62,000 50,700 Total assets 855,338 838,078 Share information Share
    15·1 answer
  • At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted. Which of
    8·1 answer
  • RJ has two loans. Loan H has a nominal rate of 5. 68%, compounded daily. Loan I has a nominal rate of 6. 33%, compounded monthly
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!