1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OLga [1]
3 years ago
6

Arbitrage is used successfully by many active securities investors. True statements about arbitrage include which of the followi

ng? (Select all that
apply.)
It is basically buying one market issue as you sell another.
It is a high-risk but highly profitable trading technique.
It can be a good way to increase portfolio value.
Transaction costs must be applied to the trades.
Business
1 answer:
lakkis [162]3 years ago
4 0

Answer:

It can be a good way to increase portfolio value.

Explanation:

Arbitrage trading involving buying an investment instrument in one market and simultaneously selling it in another.  Arbitrage trading takes advantage of unadjusted/ unsynchronized prices (market inefficiency) in different markets. Stock XY may be trading at a price of $45.41 in market A and $45.51 in market B. An investor can buy the stock in Market A and, at the same time, sell it in market B, thereby gaining $0.10 per stock.

Arbitrate trading is a low-risk investment strategy, but its returns could be great. Trades are executed simultaneously, minimizing risk. Rewards are constant. Arbitrate trading is a good way of growing a portfolio due to its low-risk and almost guaranteed profits characteristics.

You might be interested in
You decided to take a college accounting course to brush up on your knowledge of the language of business. The tuition expense w
DerKrebs [107]

Answer:

The $500 is the opportunity cost.

Explanation:

The sunk cost can be defined as a cost that has already been incurred. Such as cost can no longer be recovered. A sunk cost is considered to be irrelevant and is excluded from decision making.  

If an individual decided to take an accounting course and paid the tuition fee of $500 and gets a job offer later. If he/she decides to take up the job the tuition fee paid will be the sunk cost which cannot be recovered anymore.

8 0
3 years ago
A machine with a cost of $164,000, accumulated depreciation of $102,000, and current year depreciation expense of $25,500 is sol
Gre4nikov [31]

Answer:

$53,600

Explanation:

The computation of the cash flow from investing activities is shown below:

Cash flow from investing activities

Sale value of machinery $53,600

Net cash flow from investing activities $53,600

The current year depreciation expense is to be reported under operating activities and as we know that the investing activities record those activities which are held for purchased and sale of long term assets so the sale value fo machinery is only reported

4 0
3 years ago
A marine biologist is planning to move from Sydney, Australia to San Francisco. She has $5,000 Australian dollars (AUD) to make
natita [175]

Answer:

Now, if takes 0.765 USD to be equal 1 AUD. when the dollar increases, it will take fewer dollars to equal 1 AUD. for instance, it takes 0.5 dollars per 1 AUD. The conversion will change to:5,000 AUD * (0.5 USD/AUD)

5,000 * 0.5

= $2,500

so, her AUD will be worth more now.

Explanation:

Solution

Given that:

Her present  $5,000 AUD is worth $3,825 USD.

Then

5,000 AUD * (0.765 USD/AUD)

5,000 * 0.765

= $3,825

So,

If the USD dollar increases against the AUD, then, the ratio will reduce.

For example, it takes 0.765 USD to be equal 1 AUD. when the dollar increases, it will take fewer dollars to equal 1 AUD. for instance, it takes 0.5 dollars per 1 AUD. The conversion will change to:

5,000 AUD * (0.5 USD/AUD)

5,000 * 0.5

= $2,500

Therefore, her AUD will be worth more now.

6 0
3 years ago
Which is an example of a mandatory deduction on a pay stub?
Grace [21]

Answer:

Some mandatory payroll tax deductions that employers are required by law to withhold from an employee's paycheck include: Federal income tax withholding. Social Security & Medicare taxes – also known as FICA taxes.

~Its srishty~✿

3 0
2 years ago
Kirk McCoy is district sales manager for the Jimmy Dean division
arlik [135]

Answer: centralized

Explanation:

Based on the information given in the question, we can infer that McCoy operates a centralized department.

This is a centralized department because McCoy takes the decisions in the organization. In a centralized department, the organizational structure is such that the power regarding the decision is confined to top management, while the followers just follow the instructions

8 0
3 years ago
Other questions:
  • Doris's Fashions has just signed a $2.2 million contract. The contract calls for a payment of $0.6 million today, $0.8 million o
    6·1 answer
  • Luke is shocked by the price that Obi-Wan agrees on for passage to Alderon. The transaction between Obi-Wan and Hans Solo is an
    12·1 answer
  • Outsourcing value chain activities has such strategy-executing advantages as
    14·1 answer
  • What is usually paid on a biweekly or monthly basis for professional employment.
    7·1 answer
  • WHY should families use active listening strategies?
    10·2 answers
  • suppose dave's discount merchandise inventory account showed a balance of 8000 before the year end adjustments. The physical cou
    13·1 answer
  • Mike takes a card out of his wallet at the grocery store and swipes it to pay for his groceries. What did Mike use?
    13·2 answers
  • Albert and his family sell beverages outside the stadium during local football matches. Local football matches take place every
    15·1 answer
  • Please help this is for economics
    11·1 answer
  • Exquisite Prints is an up-and-coming photography company. To date, producing good photography is the priority of the company - n
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!