Answer:
D. Capital market instruments include both long-term debt and common stocks.
Explanation:
Capital market is financial market where long term instruments are traded. These instruments include bond, common stocks and debenture. With this background, statement in option D is correct.
Option A is not correct because reverse is the case: investment banks raise large blocks of capital from investors while commercial banks specialize in lending money.
Option B and E are not correct, too. Transaction under them are examples of a secondary market transaction.
Option C is wrong, as well. NYSE has a physical location where trading activities happen.
So option D is the only correct statement because capital market instruments are long-term debt and common stocks.
Answer:
D. $220,000
Explanation:
In order to calculate the selling price of each of the remaining 6 homes, we need to do the following calculations shown below:
As the average of 15 homes is $200,000 each. Therefore, the total price would be
= $200,000 × 15
= $3,000,000
Now for 4 houses, the selling price would be
= $170,000 × 4
= $680,000
And for 5 homes, the selling price would be
= $200,000 × 4
= $1,000,000.
Now the selling price for 6 homes would be
= $3,000,000 - $680,000 - $1,000,000
= $1,320,000
And the average would be
= $1,320,000 ÷ 6 homes
= $220,000
Answer: d. positive square root of the variance.
Explanation:
Standard deviation is used to show the risk on a set of stocks and it is calculated by taking the square root of the variance of those same returns.
The process of finding the standard deviation is to therefore find the average return first and then find the variance of these returns. At this point, the variance will be positive as it is a squared value. Once this value is then taken to its square root, you will have your standard deviation.
Answer:
13.98%.
FV = 1100, n = 3, PMT = 100, PV = -975, i = 13.98%.
Answer:
The residual income is $3,400.
Explanation:
Residual Income is calculated as Profit less Return on investment.
Net operating income $34,000
Less Return on Investment ($204,000 × 15%) ($30,600)
Residual income $3,400
Conclusion:
The residual income is $3,400.