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3 years ago

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A developing economy requires 1,000 hours of work to produce a television set and 10 hours of work to produce a bushel of corn.

This economy has available a total of 1,000,000 hours of work per day.

1 answer:

Taya2010 [7]3 years ago

5 0

Answer:

so what's your question

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is a structured approach used by decision makers to develop a sourcing strategy for a product or service, based on the value pot

kow [346]

Portfolio analysis is a structured approach used by decision makers to develop a sourcing strategy for a product or service, based on the value potential and the relative complexity or risk represented by a sourcing opportunity.

<h3><u>Explanation:</u></h3>

Portfolio analysis is an analysis of the elements incorporated in a mix of products to progress decisions that are demanded to develop overall return. Portfolio Analysis carried at frequent intervals benefits the investor to originate innovations in the portfolio allocation and modify them according to the developing market and several factors.

The analysis also assists in customary resource/asset allocation to various elements in the portfolio. It accommodates to estimate the company’s attractiveness. It aids to evaluate the competing strength of the company regarding market share, contribution margin.

4 0

3 years ago

A bank has written a call option on one stock and a put option on another stock. For the first option the stock price is 50, the

iris [78.8K]

Answer:

10-Day 99% VaR = 3.61

Explanation:

Data Given:

For First Option:

Stock Price = 50

Strike Price = 51

Volatility = 28% per annum

Time to maturity = 9 months

For Second Option:

Stock Price = 20

Strike Price = 19

Volatility = 25% per annum

Time to maturity = 12 months or 1 year

Risk Free Rate = 6% per annum

Correlation = 0.4

Find 10-day 99% VaR.

Solution:

First of all we need to refer the DerivaGem Model to dig out the change in price equation for both the options.

So, according to DerivaGem Model, We have following data:

For First Option:

Value = -5.413

Delta Value = -0.589

For Second Option:

Value = -1.014

Delta = -0.284

Change in Price = (Delta value of First Option x Stock Price)Y1 + (Delta value of the second option x Stock Price)Y2

Change in Price = (-0.589 x 50)Y1 + (-0.284 x 20)Y2

So, We will get the Change in Price Linear Equation for both the options.

Change in Price = -29.45Y1 -5.68Y2

Now, we have to calculate the Daily Volatility Percentage.

Formula:

Daily Volatility Percentage = Volatility/ Square root of number of days active in annum

Number of Days Active = 252

Volatility for First Option = 28%

Volatility for Second Option = 25%

Daily Volatility Percentage for First Option = 28%/ $\sqrt{252}$

Daily Volatility Percentage for First Option = 0.0176

Similarly,

Daily Volatility Percentage for Second Option = 25%/ $\sqrt{252}$

Daily Volatility Percentage for Second Option = 0.0157

Now, utilizing the above calculated data, we can find the one-day variance of change in price.

1-Day Variance = $(29.45^{2} *0.0176^{2}) + (5.68^{2} * 0.0157^{2}) - (2 * 29.45 * 0.0176 * 5.68 * 0.0157 * 0.4)$

Solving the above equation:

We get:

1-Day Variance = 0.2396

Now, we have to find the standard deviation of 1-Day Variance:

SD of 1-Day Variance = $\sqrt{0.2396}$

SD of 1-Day Variance = 0.4895

So,

Now, in order to find the value of one day 99% VaR from the table, we have all the prerequisites.

So,

Value of One day 99% VaR from table = 2.33

But we need 10-Day 99% VaR.

So, number of days = 10

Hence,

10-Day 99% VaR = $0.4895 * 2.33 * \sqrt{10}$

10-Day 99% VaR = 3.61

8 0

3 years ago

The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2022.

pishuonlain [190]

Answer:

Dependable Delivery Service

Classified balance sheet as at July 31, 2022

Non Current Assets

Equipment $59,360

Total Non Current Assets $59,360

Current Assets

Accounts Receivable $11,400

Prepaid Insurance $1,800

Cash $15,940

Total Current Assets $29,140

Total Assets $88,500

Equity and Liabilities

<u>Equity</u>

Common Stock $40,000

Retained Earnings $8,750

Total Equity $48,750

<u>Liabilities</u>

<u>Non Current Liabilities</u>

Notes Payable, due 2024 $31,450

Total Non Current Liabilities $31,450

<u>Current Liabilities</u>

Accounts Payable $7,400

Salaries and Wages Payable $900

Total Non-Current Liabilities $8,300

Total Liabilities $39,750

Total Equity and Liabilities $88,500

Explanation:

Its very important to calculate the Retained Earnings Balance at the end of July 2020.

To do this, we need to first calculate the Net Income for the period as follows :

<u>Income Statement for the year ended July 31, 2022</u>

Service Revenue 15,500

Less Expenses :

Maintenance and Repairs Expense 1,200

Utilities Expense 950

Insurance Expense 600

Salaries and Wages Expense 8,400 (11,150)

Net Income/(loss) 4,350

Then, calculate the Retained Earnings Balance as follows :

<u>Retained Earnings Calculation </u>

Beginning Balance 5,200

Add Net Income during the period 4,350

Less Dividends (800)

Ending Balance 8,750

6 0

3 years ago

Say the average increase in pay for non-union workers in 2011 is 2% across the U.S. If a workers' union successfully negotiates

4vir4ik [10]

Answer:

cut back the expansion of labor as a trade off between higher salaries but fewer workers.

Explanation:

If the employer believes that he is paying above average wages, he will try to reduce labor costs. Since unions are specially good in preventing massive layoffs, the other alternative left for the employer is to not hire new employees, or reduce the number of new employees that he expected to hire.

6 0

3 years ago

Sasha, a production manager at ZestCorp Inc., must predict future labor demand using information about inventory levels from the

Olegator [25]

Answer:

Trend Analysis

Explanation:

Trend analysis pertains to categorizing and assigning statistical prototypes that indicate labor demand for the next business year. That is, forecasting your future labor need from past experience and statistical data. This gives Sasha a reasonable objective statistics from the past 3years which she will base her forecast on for the next year. These statistics are also called leading indicators. In this technique. Sasha is utilizing trend analysis to anticipate labor demand.

8 0

3 years ago