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nordsb [41]
3 years ago
10

The dollar-euro exchange rate is $1.25 = €1.00 and the dollar-yen exchange rate is ¥100 = $1.00. What is the euro-yen cross rate

? Group of answer choices ¥1.00 = €0.80 ¥125 = €1.00 None of the above ¥1.00 = €125
Business
1 answer:
ivann1987 [24]3 years ago
5 0

Answer:

¥1.00 = €0.80

Explanation:

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If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expect
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=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.

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So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.

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