Answer:
The case involves analysts using the aggregate opinion of expert panelists.
Answer:
A. exactly 1.0; these stocks represent the market.
Explanation:
Beta measures volatility when it comes to stocks. It determines risk profile of that stock. Betas are ranked base on how they deviate. If it is less than the market it is less than 1.0 showing less volatility, if more it is more than 1.0 and it shows more volatility.
The average of the betas for all stocks is exactly 1.0
Answer:
a) YTM = 9.8%
b) realized compound yield is 9.9%
Explanation:
a) PMT = 80
par value FV = 1000
coupon rate = 8%
curent price PV = 953.1
years to maturity n = 3
Yield to maturity (YTM) = 
= 
= 9.8%
b) r2 = 10% = 100%+10%=1.1
r3 = 12% = 100%+12%=1.12
Realized compound yield:First, find the future value (FV. of reinvested coupons and principal
FV = ($80 *1.10 *1.12) + ($80 * 1.12) + $1080 = $1268.16
let a be the rate that makes the future value $1268.16
953.1(1+y)³ =$1268.16
(1+y)³=1.33
1+y=1.099
y = 0.099 = 9.9%
Ben, who borrowed $1,000 from a friend and agreed to pay the same amount one year later.
Answer: Option A.
<u>Explanation:</u>
Inflation is defined as the persistent increase in the prices of the goods and the services in the economy. With the inflation on the rise, the people in the economy have to face difficulties to meet their needs and wants if their incomes remain the same but the prices of the goods and the service are on a rise.
In the case discussed above, since Ben had to return exactly the same amount that he had borrowed a year before, inflation turned out to be advantageous for him.
Answer:
see below
Explanation:
Rent is an expense to the business. An increase in expenses is debited.
rent was paid by cheque. The transaction will reduce money held at the bank( asset) by Rs. 25,000. A reduction in assets is credited.
The journal entry will be
Rent A/c Dr. Rs. 25,000
Bank A/c Cr. Rs. 25,000
