Answer:
Portfolio Beta = 1.2815
Explanation:
given data
market value = $3,000,000
portfolio beta = 1.6
sells = 25
times index = $10
currently trading = 15379
to find out
anticipates that this hedge will reduce the portfolio beta to
solution
we get number of contract to sell is here
number of contract to sell = Portfolio Beta × 
......................1
put here value we get
25 = Portfolio Beta × 
solve it we get
Portfolio Beta = 1.2815
Answer
The answer and procedures of the exercise are attached in a microsof excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
b. countries can become better off by specializing in what they do best.
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation."
Also, the principle of comparative advantage asserts that countries can become better off by specializing in what they do best.
This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).
"A high-risk loan is a financing or credit product that is considered more likely to default, compared to other, more conventional loans."
I hope this helps ^-^
Answer:
Nonprogrammed; reflective; programmed; reactive
Explanation:
Programmed decisions can be regarded as decision which involves well understood criteria when making it,. nonprogrammed decisions on the other hand can be explained as decisions which are novel, they are decision that does not have clear guidelines when trying to reach solution. rules as well as guidelines can be set up for programmed decisions by Managers when known fact is available because this will enhance in reaching
decisions quickly. It should be noted that While non programmed decisions will generally need to be processed via the reflective system in our brains in order for us to reach a good decision, with programmed decisions, heuristics can allow decision-makers to switch to the quick, reactive system.
