What fact or facts support a situation where trade is advantageous?

You manage an equity fund with an expected risk premium of 12.4% and a standard deviation of 38%. The rate on Treasury bills is

timama [110]

The expected return = = 12.84 %.

The standard deviation = 22.8 %.

<u>Explanation</u>:

On the client's portfolio (total investment = 120 K + 80 K = 200 K,

The expected return

= (12.4 %risk premium + 5.4 %risk free return) $\times$ (120 K / 200 K) + 5.4 % $\times$ (80 K / 200 K)

= 17.8 % $\times$ 0.6 + 5.4 % $\times$ 0.4

= 12.84 %.

The standard deviation would be = 38 % $\times$ 0.6 + 0% $\times$ 0.4

= 22.8 %.

4 0

3 years ago

Yum! Brands customizes their marketing approach to better fit certain markets. However, their overall marketing and branding mes

Irina-Kira [14]

Answer:

Global Marketing

Explanation:

Based on this scenario, it seems that Yum! Brands is currently in the Global Marketing stage. In this, they decide on the best way to market their product/services in such a way that will maximize their reach as well as their profits Globally. These decisions are made so that their marketing is efficient in various geographic locations without having to specifically target different marketing campaigns in each location. All of which is created and controlled from within the company's home market.

8 0

3 years ago

Read 2 more answers

Connect and reflect evaluate your work by answering these questions: how did this activity help you understand the roles and pri

Hatshy [7]

The Obama Administration stated that its general agenda was to "revive the economy, provide affordable and accessible health care to all, strengthen our public education and social security systems, define a clear path to energy independence and tackle climate change, end the War in Iraq responsibly

War is defined as a violent armed confrontation between states, governments, society, or paramilitary groups such as mercenaries, insurgents, and militias. It is marked by excessive violence, aggressiveness, damage, and mortality, and it employs either regular or irregular military troops.

The doctrine's goal is to ensure that a war is morally justifiable by establishing a set of criteria that must all be met for a war to be declared just. The criteria are divided into two categories: jus ad bellum ("right to go to war") and jus in bello ("right to fight") ("right conduct in war").

Some have stated that conflicts are primarily waged for economic, religious, and political reasons. Others say that most modern battles are waged for ideological reasons.

To know more about War follow the link:

brainly.com/question/197175

#SPJ4

5 0

1 year ago

Josh runs a kayak rental company in Florida keys. his career would fall under the education and training career cluster true or

wlad13 [49]

Answer:

The answer is False

6 0

4 years ago

Read 2 more answers

If annualized nominal interest rates in the US and Switzerland are 12% and 8% respectively and the 90-day forward [one-year forw

Kobotan [32]

Answer:

Current spot rate for the Swiss frank will interest rate parity hold is <u>$1.0214</u>

Explanation:

As per given data

Annualized nominal interest rates in the US = 12%

Annualized nominal interest rates in the Switzerland = 8%

90 days forward rate = $1.0218

As we know

According to interest rate parity theory

Forward rate differential = Interest rate differential

( ( F - S ) / S ) x (360/n) = ( ( 1 + ru ) / ( 1 + rs ) ) - 1

Where

F = Forward Rate = $1.0218

S = Spot rate = ?

n = numbers of days = 90 days

ru = Annualized nominal interest rates in the US = 12%

rs = Annualized nominal interest rates in the Switzerland = 8%

Placing the values in the formula

( ( $1.0218 - S ) / S ) x (360/90) = ( ( 1 + 12% ) / ( 1 + 8% ) ) - 1

( ( $1.0218 - S ) / S ) x 4 = ( 1.12 / 1.08% ) - 1

( ( $1.0218 - S ) / S ) x 4 = 0.037037

( ( $1.0218 - S ) / S ) = 0.037037 / 4

( $1.0218 - S ) / S = 0.00925925

$1.0218 - S = S0.00925925

$1.0218 = S0.00925925 + S

$1.0218 = S1.00925925

S = $1.0218 / 1.00925925

S = $1.0214

7 0

3 years ago