Answer:
Inflation rates for Canada = 3.3%
Inflation rates for Mexico = 9.1%
Explanation:
Data provided in the question:
For Canada
CPI in 2014 = 120
CPI in 2015 = 124
For Mexico
CPI in 2014 = 210
CPI in 2015 = 229.1
Now,
The inflation = [( Current CPI - Base year CPI) ÷ Base year CPI ] × 100%
Therefore,
For Canada
Inflation = [ (124 - 120 ) ÷ 120 ] × 100%
= 3.3%
For Mexico
Inflation = [ (229.1 - 210 ) ÷ 210 ] × 100%
= 9.1%
Answer:
The portfolio's expected return is 12% and the standard deviation of the portfolio is 15.65%.
Explanation:
The expected rate of return of the portfolio is the weighted average of the individual stock returns that form up the portfolio. The formula for a two stock portfolio return is,
Portfolio return = wA * rA + wB * rB
Where,
- w represents weight of the stocks in the portfolio
- r represents the return of the stocks in the portfolio
Portfolio return = 0.7 * 0.15 + 0.3 * 0.05 = 0.12 or 12%
The portfolio which consists of a risky and a risk free asset has a standard deviation equal to the weight of the risky asset multiplied by its standard deviation. The risk free asset has no standard deviation. Thus, the formula for a portfolio standard deviation for such a portfolio is,
Standard deviation = weight of risky asset * standard deviation of risky asset
Standard deviation of portfolio = 0.7 * √0.05
Where standard deviation is the square root of variance.
Standard deviation of portfolio = 0.1565 or 15.65%
Answer:
“a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.” - Oxford language
Explanation:
Hope this helped
Answer:
The correct answer is letter "D": Foreign firms receive financial support from host-country governments.
Explanation:
Governments assign in their budgets different amounts for domestic investment. A problem arises when the complexity of the work demands <em>technology </em>and <em>know-how</em> that the domestic industry does not provide or lacks experience. In such scenarios, foreign entities are invited to take care of the projects but, by doing this, governments promote foreign financial expansion instead of domestic industry growth.
<em>That is the reason why in many cases host-country competitors claim governments contribute financially with foreign firms.</em>
Answer:
Explanation:
Balance sheet presentation :
Long term liabilties
Bonds payable 500000
Add: Premium on bonds payable 10000
Carrying value of bonds 510000
