4. The real interest rate is 3 percent, and the nominal interest rate is 5 percent. What is the anticipated rate of inflation? 1

Which type of clause enables a seller to keep a property on the market after receiving a contingent offer, and to accept an offe

USPshnik [31]

Answer:

Bump clause

Explanation:

A bum clause is a clause that is used in real state transactions that allows the sellers to get into a contract with a buyer while allowing them to maintain the property in the market and if they get another offer, they have the right to take it. This is generally used when buyers include conditions like selling their home first to allow the seller to keep looking for another opportunity.

According to this, the answer is that the type of clause that enables a seller to keep a property on the market after receiving a contingent offer, and to accept an offer from a second buyer is a bump clause.

3 0

3 years ago

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $40,000 or $135,000, with equal

pogonyaev

Answer:

a. $76,754

.38

b. 14%

c. $73,529

Explanation:

a. The computation of portfolio is given below:-

Risk Premium

= Required return - Risk free rate

= 10% + 4%

= 14%

Expected value of the payoff

= $40,000 × 1 ÷ 2 + $135,000 × 1 ÷ 2

= $87,500

Value of portfolio = $87,500 ÷ (1 + 14%)

= $76,754.39

b. The calculation of expected rate of return on the portfolio is shown below:-

= ($87,500 - $76,754.39) ÷ $76,754.39

= 14%

c. The calculation of risk premium is shown below:-

Risk premium = Required return - Risk free rate

Required return = 15%+4% = 19%

Expected rate of the payoff

= $40,000 × 1 ÷ 2 + $135,000 × 1 ÷ 2

=$87500

Value of portfolio

= $87,500 ÷ (1 + 19%)

= $73,529

4 0

3 years ago

Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus

DiKsa [7]

Answer:

Real Surplus is $200 billion

Explanation:

Inflation = 14%

Debt = $4 trillion = $4,000 billion

Nominal deficit = $360 billion

Real Deficit = Nominal deficit - (Inflation*Debt)

= $360 - 14% * 4,000

= $360 - 560

= -$200

Hence, the answer is Real Surplus of $200 billion

8 0

2 years ago

Diverse regulatory practices _____ the integration process of a global information system (gis). facilitate speed up impede empo

mylen [45]

The answer in the space provided is impede because they need to prevent the integration process of global information system in which impeding is the process or practice that helps them to engage with the process that involves of the GIS.

3 0

3 years ago

Elinore is asked to invest $ 4 comma 900 in a friend's business with the promise that the friend will repay $ 5 comma 390 in on

Mandarinka [93]

Answer:

0.09 or 9%

Explanation:

This question has some irregularities. The correct question should be :

Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay $5,390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $ 5,341 in one year's time. U.S. securities of similar term offer a rate of return of 7%. What is the opportunity cost of capital in this case?

Solution

Given from the question

Investment (I) = $4,900

Return on investment (ROI) in one year = $5,341

Rate or opportunity cost of capital r is given by

ROI = I × (1 + r)

input the given data

$5,341 = $4,900 (1 + r)

$5,341 = $4,900 + $4,900r

$5,341 - $4,900 = $4,900r

r = ($5,341 - $4,900) / $4,900

r = 0.09

Or 9% in percentage

6 0

3 years ago