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
Tanzania [10]
3 years ago
13

Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 6.00% per year. What is

the real risk-free rate of return, r*? Disregard any cross-product terms, i.e., if averaging is required, use the arithmetic average.
Business
1 answer:
Semmy [17]3 years ago
8 0

Answer:

Nominal rate of return (m) = 7%

Inflation rate (i) = 6% = 0.06

Real rate of return = ?

(1+m) = (1+r)(1+i)

(1+ 0.07) = (1 + r)(1 + 0.06)

(1.07)      = (1 + r)(1 .06)

1.07/1.06 = 1 + r

1.0094 = 1 + r

r = 1.0094 - 1

r = 0.0094 = 0.94%

Explanation:

In this case, we will apply the above formula where m is the nominal rate of return, i is inflation rate. We will make r the subject of the formula. r represents real risk-free rate.

You might be interested in
Because services are inseparable, they cannot be tried before they are purchased. To counteract this, a service firm might:
Marina CMI [18]

Answer:

A, Offer a guarantee for the customer's complete satisfaction.

Explanation:

SInce services are inseperable beacuse there cannot be trials unlike in some goods, the only way to keep a customer's mind at rest over the service he or she is getting to give a guarantee as to the quality of the service such that the customer is satisfied and can purchase the service.

For example, giving a customer a time frame for the durability of a service and also a consideration for re-service before the set or supposed time is a way of giving customer guarantee about a service he or she is purchasing

.

Cheers.

3 0
3 years ago
Union Company reported the following information about the production and sale of its only product during the first month of ope
AleksAgata [21]

Answer:

C) $200.00

Explanation:

Absorption Product Cost = Direct Labor + Direct Materials + Variable Overheads + Fixed Overheads

Thus, we need to Calculate the Total Cost of Goods Manufactured as follows :

Direct materials used                        $160,000

Direct labor                                        $100,000

Variable factory overhead                 $60,000

Fixed factory overhead                      $80,000

Total Cost of Goods Manufactured $400,000

Then Calculate the product cost per unit

Product cost per unit = Total Cost / Total Production

                                   =  $400,000 / ($315,000/$225.00 + 600)

                                   =   $400,000 / 2,000

                                   =   $200.00

Note : Total Production = Units Sold <em>plus</em> Ending Finished Goods Inventory

3 0
3 years ago
Which of the following activities are prohibited by the Clayton Act when they lead to less competition? Each of these answers is
mariarad [96]

Answer: All of the Above

Explanation:

The Clayton Act of 1914 was passed to curb unfair business practices as well as to protect the rights of labour.

Some practices that were prohibited when they led to less competition include,

- A firm acquiring a major percentage of the stocks of a competing firm because this could signify an amalgamation of efforts on the part of both firms and they could therefore have some control over Pricing.

-A director from one business sitting on the board of a competing firm because this could lead to cooperating or Corperate espionage.

- A buyer is forced to buy multiple products from a producer in order to get a desired product is expressly forbidden.

5 0
3 years ago
What happens if money needs to be transferred from one agency to another and the legislature is not in session to authorize this
kvv77 [185]

Answer:

The legislature budget board and the governor are authorize to transfer money from one agency to other.

Explanation:

Given:

Money needs to be transferred from 1 agency to other when legislature is not in session:

Solution:

When Legislature is not in session, the legislature budget board and the governor are authorize to transfer the money from one agency to other during emergencies.

3 0
3 years ago
Question Number 5) UPS management feels that one of the main advantages ________ provides to the company is structure a union sa
matrenka [14]

One of the main advantages of C. The Union in a workplace is that it helps to provide a structure.

<h3>What is a Labor Union?</h3>

This refers to a group that protects the rights and interests of workers to have better working conditions and remunerations.

Hence, we can see that the importance of labor unions cannot be overemphasized as according to UPS management, they believe that one of the main advantages of C. The Union in a workplace is that it helps to provide a structure

Read more about labor unions here:

brainly.com/question/881501

7 0
2 years ago
Other questions:
  • Foote Company recorded a purchase discount of $200 on merchandise the company had purchased on account a few days ago. Foote use
    14·1 answer
  • Between 2005 and 2011, Blue Drinks, a multinational beverage corporation, increased its return on investment from $5 million to
    10·1 answer
  • If a bank is offering a higher interest rate of return to investors, the MOST LIKELY impact on borrowers from the same bank is
    8·2 answers
  • Brief Exercise 184 Twain Company has the following accounts in its general ledger at July 31: Accounts Receivable $40,000 and Al
    10·1 answer
  • Equivalent Units of Conversion Costs The Rolling Department of Oak Ridge Steel Company had 10,712 tons in beginning work in proc
    10·1 answer
  • Cost of a Fixed Asset Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incu
    9·1 answer
  • James is employed by a large corporation with 400 employees. The corporation provides its employees with a no-cost gym membershi
    9·1 answer
  • The average cost associated with each additional dollar of financing for investment projects is:_________
    14·1 answer
  • An investor in able inc. would like to understand able's availability of resources to pay its short-term cash requirements. this
    14·1 answer
  • The body of law that governs oral and written agreements associated with the exchange of goods, services, money and property is
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!