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Ksju [112]
3 years ago
10

Assume the spot exchange rate for the Hungarian forint is 267.767 HUF. Also assume the inflation rate in the United States is 1.

6 percent per year while it is 3.5 percent in Hungary. What is the expected exchange rate three years from now
Business
1 answer:
Margarita [4]3 years ago
3 0

Answer: 283.322 HUF

Explanation:

Following the information given in the question, the following can be deduced:

Spot rate = 267.767

Foreign currency interest rate (rf) = 1.6%

Home currency interest rate (rh) = 3.5%

Number of years (n) = 3

Therefore, the expected exchange rate 3 years from now will be calculated as:

= Spot × (1+(rh - rf))^n

= 267.767 × [1 + (35% - 16%)]³

= 267.767 × [1 + (0.035 - 0.016)]³

= 267.767 × 1.0581

= 283.322 HUF

Therefore, the expected exchange rate 3 years from now will be 283.322 HUF.

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A consumer is less likely to act as a brand advocate. An advocate to someone is a person that speaks on behalf of someone or acts as an intermediate between a person he is representing and another. An advocate role is not the job of a consumer.

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Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 14% and
barxatty [35]

Answer:

B; it offers an expected excess return of 1.8%

Explanation:

Here are the options :

A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%

to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

Stock A = 5% + 1.2(9% - 5%) = 9.8%

Stock B = 5% + 1.8(9% - 5%) = 12.20%

The next step is to determine the excess return

stated expected return - calculated expected return = excess return

Stock A's excess return = 10% - 9.8% - 0.2%

Stock B's excess return = 14 - 12.20 = 1.8%

Security B would be considered because it has a higher excess return

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Is the following example a social group or a task group?
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Answer:

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Explanation:

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The firm should hire 2 more people

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Breakeven point (units) = Fixed cost/ weighted average cost per unit

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